Sun, Dec 19, 2004
Costs of developing the new super-jumbo jet near 20% higher
than original estimates
The project to design and fly the largest airliner in the civil
aviation world has so far gone over budget. EADS' A380 program has
so far cost $1.9 billion over the original estimate of $10.7
billion, said Rainer Hertrich, co-chairman of EADS.
At a meeting of business journalists in Munich, the company made
the announcement. Hertrich admitted that the cost overruns were
"indeed hefty." The overruns are not, however, expected to affect
the aircraft's profitability.
The additional costs are resulting from having to spend
additional time to bring the aircraft's weight in line with
original estimates, and with the work required to keep the project
on schedule for a March 2005 first flight.
The efforts have paid off, according to Hertrich who pointed out
that the project is "completely on schedule" for a first prototype
roll out on January 18, 2005.
The double-decker A380 is expected to enter service in 2006 and
its order book currently stands at some 140 firm orders and
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