Airbus power struggle not good Business.

[bits44]

This news about the vicious power struggle within Airbus is not going over well within the airline industry, its casting long shadows over the company, and undermines investor confidence.

http://www.expatica.com/source/site_art ... ge+at+EADS

[Ruscoe]

Very Interesting to watch these power struggles. Foregeard's dynamic way of going about business has obviously helped Airbus, but those same qualities may work against him being a chairman of EADS. I can see where the Germans are coming from on this. in any normal corporate structure in Australia at least, 30% would give you complete control of the board, because of the large number of shareholders,with small parcels of shares, but despite what some would like to believe, the corporate structure of EADS is not healthy or normal. I fear this will work to the detriment of EADS in the future, because a corporation needs the rigor of a wide shareholder base.

Do you know how it works on a practical level having 2 chairman?

ruscoe

[YACHTIE]

This whole German French thingy will be the eventual downfall of EADS/Airbus.
This is not just a problem at the top but at the working level as well, always has been nothing new here. One of the reasons I declined to work for them.

[Advisor]

Let us see what happens next! This industry is very vibrant and i personally do not perceive these hurdles to either cause or create any setbacks for Airbus.

[sn26567]

One of the reasons I declined to work for them.

You are lucky to be able to choose...

[Advisor]

Forgeard said he was not in a campaign to become co-president of EADS. "I am leading no campaign and I'm not responsible for this agitation. The decision to nominate a French co-president is up to Arnaud Lagardere, and him alone," he said.

EADS co-CEO Camus faces a fierce challenge from Forgeard for the top French job at EADS, where executive power is shared between French and German officials.

Asked about the reports about his succession by Le Journal du Dimanche, Camus referred to his achievements over the last five years and added: "As to what concerns the due dates to come, I leave it up to the shareholders to decide."

The French state and Lagardere own 15 percent each of EADS which was formed in 2000 during a restructuring of European aerospace activities. Daimler Chrysler owns 30 percent.

[bits44]

Noël Forgeard to a French newspaper] "It is true that the R&D costs of the A380 have exceeded the €8.09 billion budget" [....] by between €500 million and €1.5 billion.

(Source Airliners.net)

You can almost bet that budget overage is 1.5 billion euros. This is just an astounding amount of money, no company can absorb that loss.

This news, along with fact that Airbus has commited to producing a competitor to the Boeing 7E7, is going to cause a horrendous backlash in the Financial marketplace. This combined with the fact that the U.S. is going to use this information against Airbus in the upcoming WTO case may be the downfall for Airbus. And more bad news keeps coming to spoil the party, there are rumours that a major purchaser of the A380 may cancel their order, and there seems to be no new orders for the A380 on the horizon. Things are looking very bleak.[/quote]

[Ruscoe]

Westjet do you have any idea who is the 380 customer thinking about jumping ship?

Ruscoe

[sn26567]

And more bad news keeps coming to spoil the party, there are rumours that a major purchaser of the A380 may cancel their order, and there seems to be no new orders for the A380 on the horizon. Things are looking very bleak.

This sounds like the Concorde story: many airlines ordered it, than cancelled their orders after the first oil crisis, ecept Air France and British Airways which were compelled to buy it by their governments and main shareholders.

But I think your view is too pessimistic. Airbus has learned from the Concorde debacle. A cost overrun (as well as a delay) is a common feature in the aviation industry. This is not going to sink them. Yet...

[bits44]

Andre and Ruscoe

The rumours floating around the industry are Virgin Atlantic may cancel altogether, they have already pushed back their delivery dates once. I think the problem lies with insufficient traffic on the routes they had planned to use them on, there is no economic advantage in flying a route with a 550 passenger aircraft, when your average seat load is only 350.

As far as Airbus' budget overage is concerned, the overage stated in the
article was probably conservative, and is more likely considerably higher.
That alone is sufficient for deep concern by financiers and investors, but combined with the expense involved in launching the A350 which is also considerable, and the upcoming litigation with the United States and the WTO, not to mention the intense power struggle taking place within the company, this company is in trouble, BIG trouble.

[Advisor]

I think the problem lies with insufficient traffic on the routes they had planned to use them on, there is no economic advantage in flying a route with a 550 passenger aircraft, when your average seat load is only 350.

The focus factor, i agree. If Virgin backed out, i'm sure that this is the reason.

[L-1011]

The rumours floating around the industry are Virgin Atlantic may cancel altogether, they have already pushed back their delivery dates once. I think the problem lies with insufficient traffic on the routes they had planned to use them on, there is no economic advantage in flying a route with a 550 passenger aircraft, when your average seat load is only 350.

In this case, we might perhaps see Virgin change its A380 order to A350s, which would be more in line with its loads and needs?

Or would this mean an increase in Virgin's A346 order?

ciao,
TriStar

[Avro]

VS might maybe cancel there order, but I would certainly not say that the A380 will not be a success.

Only the future will tell

Chris

[YACHTIE]

That's not chickenfeed!!
almost $2billion Us dollars more than enough to have developed the FD728 and saved Fairchild Dornier from bankruptcy.

I guess now we know why EADS did not bail out FD , they needed the money themselves
Yeah for those reading German you can see the article in Suddeutshce Zeitung at http://www.sueddeutsche.de/wirtschaft/a ... 774/44730/
There is also a cute picture of the A380 taking off.

Merry Xmas to all

[bits44]

http://www.expatica.com/source/site_art ... s+'pitiful'+