Saturday, July 15, 2006

Thin Air for Airbus

The New York Times spins the Farnborough International Air show, starting Monday near London, as evidence of trouble for Airbus. The European aircraft maker has been rocked by falling stock prices, the departure of its co-chief executive, and questions about two of its aircraft that are in production. The double-decker A380 is behind in its production schedule, and there are questions about the demand for such a large aircraft, which many airports would have to expand their runways to accommodate. Airbus’ midsize plane, the A350, may undergo a complete overhaul to compete with Boeing’s Dreamliner. Friday’s Wall Street Journal ran a story with a similar angle, critical of Airbus’ problems. Does the European press have the same perspective?


Blogger Ben said...

Yes, it appears that Airbus is in trouble. The problem isn't simply that they're missing due-dates and scaring investors. More problematic is their misreading of the airline industry: their jumbo jets correspond to the old hub-and-spoke model of travel, whereas the future lies in smaller planes that carry passengers from point to point with no or fewer connections. Boeing successfully detected this trend and is designing new aicraft accordingly.

4:30 PM  
Blogger Evan said...

...and hopefully such a wise move will bring Boeing back in favor with its domestic customers.

6:01 PM  
Blogger Matt said...

I Love air shows too... Unfortunately I don't get to go to any all that often. However, I found a video that is pretty cool and the pilot survived the crash with only minor injuries... It's pretty amazing...

9:24 PM  
Blogger Phlip said...

Check this out for the latest from the airshow. Sounds like Airbus is making all kinds of announcements trying to show they are OK.

1:03 PM  

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