No Doubt, EADS Would Like To Forget The Past Year | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

** Airborne 07.28.14/Oshkosh Day 1! ** HD iPad-Friendly Version--Airborne 07.28.14/Oshkosh Day 1 **
** Airborne 07.25.14--CLICK HERE! ** HD iPad-Friendly Version--Airborne 07.25.14 **

Sat, Mar 10, 2007

No Doubt, EADS Would Like To Forget The Past Year

Airbus Problems Result In Big Losses

It's official: this year will go down as the worst-ever in the 37-year history of European Aeronautic Defence & Space (EADS), parent company of troubled planemaker Airbus -- and according to the company's co-CEOs, the worst may still be yet to come.

"It was the worst year for Airbus in its life," co-chief executive officer Louis Gallois said during the company's annual news conference in southern Germany this week.

"We had big problems, as everyone knows," co-CEO Tom Enders added, according to The Associated Press. "This company needs more innovation, more focused innovation."

Both men placed blame for EADS' current financial woes squarely on Airbus, which has endured massive losses stemming from a 22-month delay in deliveries of its A380 superjumbo. The planemaker also misfired on its original design of the A350 midsized airliner, competitor to the Boeing 787; after a costly redesign, that plane won't reach the market until at least four years after the 787 starts customer flights.

Airbus' woes contributed to a staggering $1 billion loss from October-December of 2006; in the last quarter, EADS posted an operating loss of $2.26 billion. Those are the kinds of numbers not even anticipated record deliveries of airliners can surmount.

"We will deliver between 440 and 450 airplanes, but Airbus will display another substantial loss in 2007 because of the charges for the Power8 program (and) further costs to support the A380," Gallois said.

As Aero-News reported, Power8 has drawn strong opposition from labor groups in Germany and France, protesting planned job cuts of 10,000 workers and the sale or partnering of six plants. Gallois said those losses, painful as they are, are absolutely necessary for the planemaker to regain its former glory.

"We have to build a new Airbus. A network of strong partners sharing expenses and risk with it," Gallois said. "It's our priority in 2007 to implement Power8."

FMI: www.airbus.com, www.eads.com

Advertisement

More News

EAA AirVenture 2014 Welcomes The Boldest Human Space Mission Yet

Events To Highlight Industry Collaboration For Reaching The Planet Mars Leaders from the aerospace community held a press conference at EAA AirVenture on Monday to get the word out>[...]

Aspen Avionics, True Innovators, Present Oshkosh 2014 Special Event Coverage!

OSH2014 Sponsor: Aspen Avionics Aspen Avionics specializes in bringing the most advanced technology and capability into general aviation cockpits. Our products increase situational>[...]

Futuristic OSH2014 Sponsor: 'Beyond The Blue' - The Inside Story Of The XPRIZE

Meet Jim Campbell, TODAY/07.28, At EAA Wearhouse, Author's Corner, At 1500 And Get Your Signed Copy of Beyond The Blue!!! To Aviation Journalist and experienced Test Pilot, Jim Cam>[...]

Ready For Service... ConciAir Helps Present OSH2014!

ConciAir Is Here To Return Our Industry To Service! The name ConciAir is a play on the word "concierge", and our goal is to be able to accomplish any task placed before us in a tim>[...]

OSH2014 Sponsor: Eclipse Aerospace -- In Full Production!

The Eclipse 550: Economical. Efficient. Incredible. The Eclipse 550 not only has the lowest acquisition cost of any twin-engine jet on the planet, it also has the lowest operating >[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC