Fri, May 07, 2010
One Expert Sees It As An Airplane With No Mission
An analyst for Gerson Lehrman Group says that the EADS and
Airbus should pull the plug on the A380, which EADS CEO Louis
Gallois admitted recently is continuing to struggle for market
share.
The blog FleetBuzz Editorial reports that, in the 10 years of
the A380's existence, its production costs have doubled and it has
not attracted a significant number of buyers despite deep discounts
on the airplane. 2010 sales targets have already been missed, and
are likely to see another downward revision due to labor
issues.
Still, Gallois reportedly says he is "absolutely convinced" that
the airplane will be a "success", despite its slugging order book
and deferrals from airlines. Following the volcanic ash disruption
in Europe last month, which is still causing spotty airport
closures, BA is reportedly considering another deferral of the
A380's it has on order.
The analyst at GLG says the A380 is continuing to drain
resources away from other projects, like the A350XWB, and if Airbus
continues to build the super-jumbo it could negatively affect its
newer, composite airplane. Contributing to its woes is that the
design is approaching its 10th anniversary, and airlines are
looking for airplanes with fewer and more efficient engines for the
long term. Conversion to a freighter, the analyst suggests, is also
nearly impossible due to design considerations, and no freight
infrastructure to support the airplane.
In 10 years, EADS and Airbus have just 202 orders for the A380,
and GLG reports that two thirds of those have been deferred.
Airlines, the analyst says, are looking past the premium passenger
and buying airplanes to suit growth in a more price-sensitive
segment of the market, which could leave the A380 as an airplane
looking for a market to serve.
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