We must catch up. In 15 years I hope we are ahead of Boeing again.
Even if we arrive with three or four years' delay with respect to Boeing's 787, this question (of the A350) is [fundamental] for the development of Airbus. ... Being absent from a segment that represents 40 percent of the value of the market is difficult to imagine. (See below.)
Christian Streiff,
CEO of Airbus S.A.S.,
musing on his company's wishful prospects
PARIS October 5, 2006 (AFP)
Following Airbus's third announced A380 delay, customers and the business press have come to suspect something more serious than production slippage is the problem.
Airbus, business or political theater?
October 5, 2006 (WSJ) - Pity Christian Streiff. The Airbus CEO, who came on board this summer to stop the bleeding at the aircraft giant, is learning the limits of running a company whose raison d'être is more about patriotism than profits.The reactions in Paris, Berlin and Madrid to Tuesday's news that the A380 superjumbo will be delayed again -- costing €2.8 billion, or $3.57 billion -- were as damaging as they were predictable. Germany and Spain made noises about increasing their stakes in Airbus's parent, European Aeronautic Defence & Space Co., to make sure they have a bigger say in whatever happens next. That's probably the worst thing that could happen to Airbus right now.
… If Germany and Spain do buy more EADS shares, the political wrangling over which factories do what -- not to mention which ones close -- will only worsen. Then there's Russia's recent purchase, through a state-owned bank, of a 5% stake in EADS. Moscow isn't just dabbling in the stock market here. President Vladimir Putin has made it clear that he wants to use the link with EADS to boost Russia's aerospace industry. That's another mouth to feed.
State intervention might also send Airbus's management back into a tailspin just months after its latest shake-up. The French daily Les Echos reported that the EADS board thinks the CEO's restructuring plan is too drastic, and that Mr. Streiff threatened to resign if his proposal is scuttled. If political obstacles meet Mr. Streiff at every turn, who could blame him for wanting to leave? Even worse for Airbus, who would ever want to succeed him?
Next question, how much bad news is there?
EMIRATES READY TO JETTISON AIRBUS?
October 4, 2006 (Forbes) - Media reports have suggested that Middle Eastern airline Emirates, frustrated by further delays to the jinxed Airbus A380 program, is close to cancelling at least half of its orders for the aircraft and is discussing with Boeing terms for an initial order of approximately 20 of their 747-8s.
If the Emirates changes its order, it will favor a reliable delivery of the Boeing 747-8 in 2009 over the weak delivery promise of the first A380 superjumbo in August 2008.
AIRBUS COMPENSATES KINGFISHER
October 7, 2006 (Brunei Times)
Next question, how many more reverses?
EADS CEO OPTIMISTIC ON AIRBUS A350
BERLIN October 5, 2006 (BusinessWeek/AP)
EADS CO-CEO DOES NOT RULE OUT DROPPING A350
PARIS October 5, 2006 (Reuters)
EADS SAYS NOTHING AUTOMATIC ABOUT A350 LAUNCH
PARIS October 5, 2006 (Reuters) - A spokesman confirmed a Financial Times Deutschland report quoting EADS co-CEO Thomas Enders as saying "I cannot rule that out," when asked whether the A350 programme could be endangered by the delays and profit warnings surrounding the A380.... Enders was quoted in the newspaper as saying "The A380 timetable was ambitious from the start and from today's point of view perhaps unrealistic."
BAD TO WORSE FOR AIRBUS
AS A380 CRISIS EFFECTS OTHER PROJECTS
October 5, 2006 (DW) - The delays to the delivery of the A380 may be putting plans to build the mid-sized A350, an aircraft Airbus insists is "fundamental" to its future, in severe danger, according to reports Thursday. Airbus also announced that there were fears that the A400M military airlifter, on order from seven European NATO countries, would be delayed and would fail to make the company money unless costs were slashed.
EADS TO RESPECT DELIVERY DEADLINES
FOR A400M PLANE - GERMAN DEFENSE MINISTRY
PARIS October 6, 2006 (ForbesAFX)
Last question, who's in charge? (Stories in order of release.)
AIRBUS DENIES SPECULATION THAT CEO STREIFF
MAY LEAVE TO BECOME PEUGEOT CEO
PARIS October 6, 2006 (Forbes/AFX)
EADS' AIRBUS HEAD CHRISTIAN STREIFF
HANDED HIS RESIGNATION TO GALLOIS
FRANKFURT October 6, 2006 (AFX) - Airbus head Christian Streiff told his superiors he wants to step down, reported Wirtschaftswoche, citing unnamed sources close to the EADS unit in Paris. According to the report to be published on Sunday, Streiff has handed in his request to EADS co-chief executive Louis Gallois.
EADS DENIES AGREEMENT ON DEPARTURE OF AIRBUS CEO
PARIS October 6, 2006 (IHT/AP)
EADS OKS AIRBUS CEO RESIGNATION
PARIS October 6, 2006 (CBS/AP)
It has not been a year since Airbus was nothing but good news. And today it's all bad news. And unlike the good news, the bad news is not passing. Airbus's problem is not wiring and cabling. Airbus's problem is parent EADS and the duplicative nationalized Borgia court that passes for management.
If political bosses continue to run Airbus as a jobs program and not an airplane company, well, there soon will be no jobs and no airplanes. If management is goverened by national interests and not business interests, Airbus will fail as a business.
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