Airbus Considers Outsourcing Commercial Production To Boeing's Turf | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 03.30.15

Airborne 03.31.15

Airborne 04.01.15

Airborne 03.26.15

Airborne 03.27.15

Airborne Hi-Def On YouTube

Airborne 03.30.15

Airborne 03.31.15

Airborne 04.01.15

Airborne 03.26.15

Airborne 03.27.15

 

Thu, Dec 06, 2007

Airbus Considers Outsourcing Commercial Production To Boeing's Turf

Euro Surge Makes It Cheaper To Build Planes In US

If there was ever a doubt to the seriousness of the continuing surge in the value of the euro against the US dollar, consider this: European planemaker Airbus is seriously considering a shift in production of its planes to the United States, because it's cheaper.

The Guardian reports Louis Gallois (above), CEO of Airbus parent company EADS, issued a "wake-up call" to European interests this week, warning the continent was in danger of losing its engineering resources.

"A part of the European aeronautical and space industry is threatened by the evolution of the dollar and I think this is a problem with a political dimension," Gallois said.

To that end, Airbus may build a new plant in the state of Alabama to assemble its planes. The move would allow Airbus to manufacture aircraft in the same currency in which they are sold -- the US dollar.

As ANN has reported, the current discrepancy in value between the euro and the dollar have hit the planemaker hard. Currently, Airbus builds its planes in euros... slashing the planemaker's profit when it comes time to deliver those aircraft.

Gallois also called for an emergency meeting of the G7 nations, to address the exchange rate. As of Tuesday, one euro was worth $1.46 -- three cents off its all-time peak.

"There is a deep crisis in a number of industries solely due to the fact that the Americans are carrying out a policy that translates as the endless fall of the dollar," Gallois said, echoing similar statements by Airbus CEO Tom Enders.

Despite the seriousness of the exchange-rate problem for Airbus, however, there was an additional political undertone to Gallois' comments.

According to sources inside EADS, Airbus would only consider building a plant in Alabama, if a team comprised of Northrop Grumman and EADS is chosen to build a new aerial refueling tanker, based on the Airbus A330-200 commercial airliner, for the US Air Force.

"But a precondition would be that we win the tanker contract," one unnamed source said.

The Pentagon is expected to make its decision on the KC-X contract in early 2008... and analysts say it remains a 50/50 battle between the EADS offering, and Boeing's KC-767.

FMI: www.airbus.com

Advertisement

More News

04.01.15 Special: New Apple Watch May Eliminate Medical Exams For Airline Pilots

Combining The Capabilities Of Apple Technology And ADS-B Out May Replace Airline Pilot Medicals, But There Could Be A Catch ANN's April 1 "April Fool" Special Edition As the Pilots>[...]

04.01.15 Special: Inhofe -- Media Reporting On Aviation Should Be Knowledgeable

Proposes Legislation To Have Journalists Pass A Basic Written Exam ANN’s April 1 “April Fools” Special Edition Senator James Inhofe (R-OK) has proposed legislatio>[...]

04.01.15 Special: Regional Airline Looks To Undocumented Immigrants

Carrier Says Americans Unwilling To Take The Jobs At What It Can Afford To Pay ANN’s April 1 “April Fool” Edition It may just be the tip of the iceberg, but Repub>[...]

04.01.15 Special: Roscosmos Sues Boeing, SpaceX

Tries To Prevent Launches From Returning To American Soil The Russian Space Agency Roscosmos has filed a lawsuit in a Russian court against Boeing and SpaceX, saying the two U.S. c>[...]

Airborne 04.01.15: April 1st Special Episode!, David Bowie In Space, New TBirds!

Also: Inhofe Demands Media Aero-Accountability, "Super Duper" Cub, RANS' Exclusive WalMart Deal, Obama To Keep Air Force One, Cessna Bringing Back Bamboo Bomber Pop-star legend, Da>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2015 Web Development & Design by Pauli Systems, LC