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Old 06-23-2009, 05:18 PM   #19 (permalink)
RU4692
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Joined APC: Jun 2008
Position: Professional Monkey Trainer
Posts: 193
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Quote:
Originally Posted by alvrb211 View Post
The big isssue at Boeing is not outsourcing!

And, based on the forecasts of current operators, the A380 will be profitable even if no new operators select it.

A big problem for Boeing right now is a lack of progress payments.

Al
I highly doubt the A380 will ever be profitable for Airbus.

"Mounting deferrals of A380s are further undermining Airbus’s efforts to achieve profitability for the program, and could push the financial break-even point for the aircraft past 2020.

Although airlines aren’t singling out the A380 for deferrals—Boeing 777s, 787s and other aircraft types are similarly affected—the postponements spell particular trouble for the economics of the mega-transport. Airbus is in a critical period of ramping up production of the A380 to gain efficiencies and make up for the greatly increased development costs that surged by billions as a result of the two-year delay in the program. If those efforts stall due to sagging demand, it will increase the challenge to reach financial viability for the aircraft.

Airbus has ceased providing a break-even number for the aircraft—following the lead of rival Boeing—but cost increases owing to program delays have effectively meant the aircraft maker would have to sell more than 500 of the aircraft to turn a profit. So far, it has 200 firm orders. The original break-even point was around the 250th unit."

A380 Break-Even Point Likely To Slip Further to 2020, page 1
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