Airbus 380 What Went Wrong
NEWS FLAVOR http://newsflavor.com/opinions/airbus-a380-what-went-wrong/ Airbus A380: What Went Wrong?
[pic]Published by Miqdad Sibtain on March 12, 2009 in Opinions
“In most airline programmes of this size – including those of our competitors – things can run a little later than originally planned.” – Airbus spokesman.
“I am extremely sorry vis-à-vis investors that have placed their confidence in EADS. This announcement came as a big blow. But we will create recovery.”
- Noel Forgeard, co-CEO
“While we have some sympathy with Airbus for the sheer scale of the challenge, we believe it is difficult to justify warning so late of the problem or failing to anticipate the issue.”1 Introduction
On June 13th 2006, Airbus S.A.S. (Airbus), the world’s biggest commercial airplanemaker, announced a delay of six months in the launch of its much awaited/forthcoming
A380 passenger jets. Airbus A380, which was nicknamed ‘superjumbo’, would be the largest passenger aircraft in the world with seating capacity of 555 passengers. Back in
2005 also, Airbus had extended its delivery deadline by six months and planned to deliver the first aircraft in October 2006. The new announcement further deferred the delivery till April 2007.
After the announcement, the market capitalization of European Aeronautic Defence and
Space (EADS), the parent company of Airbus, fell by 26% on 14th June 2006. Airbus explained that the delay was caused by a problem in the installation of cables for the plane’s entertainment system. Panicked by the announcement, the company’s biggest customers, including Emirates and Singapore Airlines, demanded compensation for the delay in the delivery of planes, while International Lease Finance Corporation (ILFC), the biggest aircraft-leasing company, threatened to cancel its order of 10 A380s. In the mean time, Singapore Airlines, which was the first to order A380, ordered 20 of Boeing
Co.’s2 (Boeing) new 787
[pic]Published by Miqdad Sibtain on March 12, 2009 in Opinions
“In most airline programmes of this size – including those of our competitors – things can run a little later than originally planned.” – Airbus spokesman.
“I am extremely sorry vis-à-vis investors that have placed their confidence in EADS. This announcement came as a big blow. But we will create recovery.”
- Noel Forgeard, co-CEO
“While we have some sympathy with Airbus for the sheer scale of the challenge, we believe it is difficult to justify warning so late of the problem or failing to anticipate the issue.”1 Introduction
On June 13th 2006, Airbus S.A.S. (Airbus), the world’s biggest commercial airplanemaker, announced a delay of six months in the launch of its much awaited/forthcoming
A380 passenger jets. Airbus A380, which was nicknamed ‘superjumbo’, would be the largest passenger aircraft in the world with seating capacity of 555 passengers. Back in
2005 also, Airbus had extended its delivery deadline by six months and planned to deliver the first aircraft in October 2006. The new announcement further deferred the delivery till April 2007.
After the announcement, the market capitalization of European Aeronautic Defence and
Space (EADS), the parent company of Airbus, fell by 26% on 14th June 2006. Airbus explained that the delay was caused by a problem in the installation of cables for the plane’s entertainment system. Panicked by the announcement, the company’s biggest customers, including Emirates and Singapore Airlines, demanded compensation for the delay in the delivery of planes, while International Lease Finance Corporation (ILFC), the biggest aircraft-leasing company, threatened to cancel its order of 10 A380s. In the mean time, Singapore Airlines, which was the first to order A380, ordered 20 of Boeing
Co.’s2 (Boeing) new 787