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Russia wants to supply parts for A350

By IAG | February 27th, 2007 | Posted in airbus, eads, russia | 2 Comments

Airbus, already seriously delayed in its A350 program, now has another problem to contend with. The Power8 program has been discussed and agreed at the Board level. The rest of Airbus' employees have to wait until month end to get the decision. Dealing with two irritating governments is bad enough – now a third wants to meddle. Pity EADS and Airbus managers.

A report out on Forbes quoting AFX, states that perhaps 3% of the A350's part could be sourced in Russia. It won't stop there. The Kremlin will want more because they have 22 orders waiting in the wings. Aeroflot has lost its great delivery slots on 787s and likely any goodwill Boeing had towards the airline. The interference by the Kremlin in the airline's fleet plans has been highly disruptive. Aeroflot now has no option but to buy the A350, despite its internal preference for the 787. More on this here.

In today's Russia, "consolidation" is the order of the day. Re-nationalization of the country's aerospace assets into state control has many commentators wondering if Communism (remember that failed ideology?) making a comeback. For Airbus, tiptoeing through the minefield of Europe's labor laws (a 35 hour week in France) and meddling governments, no worse scenario surely exists than being eyed by Putin. Are EADS and Airbus strong enough to rebuff Russia? New capital from Qatar never looked better. The China factory looks great. But with each step down this road, the European face of Airbus changes forever. The French and German governments must be very nervous.

A350XWB cabin mockups

By IAG | February 26th, 2007 | Posted in a350, airbus | No Comments

Economy Class

Business Class


Note the clever lighting – coach looks a bit too bright. Even with nine across seating the cabin looks comfortable. The business class seating looks downright spread out.

A350XWB cabin mockups

By IAG | February 26th, 2007 | Posted in a350, airbus | 3 Comments

Economy Class

Business Class


Note the clever lighting – coach looks a bit too bright. Even with nine across seating the cabin looks comfortable. The business class seating looks downright spread out.

AIRBUS MOBILE (ALABAMA) ENGINEERING CENTER OPENS DOORS

By IAG | February 26th, 2007 | Posted in airbus, alabama | No Comments

Airbus' long-range A350XWB aircraft and the Northrop Grumman KC-30 Advanced Tanker today came another step closer to reality in Mobile, Alabama, as Airbus North America's engineering center officially opened its doors.

At full capacity, the engineering center is slated to employ at least 150 engineers. Those engineers will be responsible initially for assignments related to Airbus' new A350XWB aircraft, including the design of cabin interiors, crew rest compartments, lavatories and galleys. It also is the first step in a potentially larger-scale industrial site to be built should the Northrop Grumman KC-30 advanced tanker cargo aircraft team, of which EADS is a principal subcontractor, receive an order to modernize the U.S. Air Force's aerial refueling tanker fleet.

This news throws down a gauntlet to the Washington State crowd. Its a small gauntlet but sends the message. The news of this site playing a role in the A350 is very important given what is going on in Europe. It sends the message that even without the KC-30, this site has work to do.

There is no mention of the $14.4m in state and local tax breaks and allowances Airbus received from the State of Alabama, which undermines the standard arguments about the State of Washington giving financial breaks to Boeing. Also, the center does not bring the USAF tanker contract closer; or that financial aid is slated to go to beyond $100m if Airbus wins the tanker contract.

The A350 work there is low-key (all they are designing is overhead stowage bins) and their purpose is just to keep the building warm in the hope Northrop Grumman/EADS wins the tanker contract. It appears now the USAF is talking sole source for the first tranche and possibly a split for the second.

Tom Enders was invited to the opening, but not Mr. Gallois, who, of course, has more on his plate.

AIRBUS MOBILE (ALABAMA) ENGINEERING CENTER OPENS DOORS

By IAG | February 26th, 2007 | Posted in airbus, alabama | 2 Comments

Airbus' long-range A350XWB aircraft and the Northrop Grumman KC-30 Advanced Tanker today came another step closer to reality in Mobile, Alabama, as Airbus North America's engineering center officially opened its doors.

At full capacity, the engineering center is slated to employ at least 150 engineers. Those engineers will be responsible initially for assignments related to Airbus' new A350XWB aircraft, including the design of cabin interiors, crew rest compartments, lavatories and galleys. It also is the first step in a potentially larger-scale industrial site to be built should the Northrop Grumman KC-30 advanced tanker cargo aircraft team, of which EADS is a principal subcontractor, receive an order to modernize the U.S. Air Force's aerial refueling tanker fleet.

This news throws down a gauntlet to the Washington State crowd. Its a small gauntlet but sends the message. The news of this site playing a role in the A350 is very important given what is going on in Europe. It sends the message that even without the KC-30, this site has work to do.

There is no mention of the $14.4m in state and local tax breaks and allowances Airbus received from the State of Alabama, which undermines the standard arguments about the State of Washington giving financial breaks to Boeing. Also, the center does not bring the USAF tanker contract closer; or that financial aid is slated to go to beyond $100m if Airbus wins the tanker contract.

The A350 work there is low-key (all they are designing is overhead stowage bins) and their purpose is just to keep the building warm in the hope Northrop Grumman/EADS wins the tanker contract. It appears now the USAF is talking sole source for the first tranche and possibly a split for the second.

Tom Enders was invited to the opening, but not Mr. Gallois, who, of course, has more on his plate.

The Chirac and Merkel summit

By IAG | February 26th, 2007 | Posted in airbus, eads | No Comments

They came, they spoke and they went home. It appears German unions may have won some concessions in terms of job cuts. Meaning Ms. Merkel's efforts may have saved some jobs but more importantly, Germany may have saved "face". France might lose more jobs, but in light of the coming election, will offer more compensation and they get to keep the A350. If only it were that simple. What else did they speak about? Nothing is reported. But we bet the British cuts were discussed at some length. These would not be reported post this summit.

The announcement will likely be left to M. Gallois. We have heard that once Power8 is announced, it will not be long before M. Gallois will announce his retirement.
—————
ATW reports — German Chancellor Angela Merkel and French President Jacques Chirac jointly backed Airbus's Power8 restructuring plan Friday as a revised proposal put forward by EADS co-CEO and Airbus CEO Louis Gallois appeared to ease German opposition to the cost-cutting program, details of which could be revealed as soon as this week and likely no later than next week.

The compromise put forward by Gallois reportedly includes equal site closures in France and Germany but still would base A350 XWB production in France. German officials had objected to that work being centered in France but apparently have softened their stance since factory closings will be distributed equally.

the revised plan calls for more job cuts in France than in Germany, according to Chirac. "I believe that France is getting penalized a bit more than Germany as far as reorganization of employment is concerned based on what I am being told," he said. He
added that job cuts should be accompanied by "compensation" for dismissed workers.

The Chirac and Merkel summit

By IAG | February 26th, 2007 | Posted in airbus, eads | No Comments

They came, they spoke and they went home. It appears German unions may have won some concessions in terms of job cuts. Meaning Ms. Merkel's efforts may have saved some jobs but more importantly, Germany may have saved "face". France might lose more jobs, but in light of the coming election, will offer more compensation and they get to keep the A350. If only it were that simple. What else did they speak about? Nothing is reported. But we bet the British cuts were discussed at some length. These would not be reported post this summit.

The announcement will likely be left to M. Gallois. We have heard that once Power8 is announced, it will not be long before M. Gallois will announce his retirement.
—————
ATW reports — German Chancellor Angela Merkel and French President Jacques Chirac jointly backed Airbus's Power8 restructuring plan Friday as a revised proposal put forward by EADS co-CEO and Airbus CEO Louis Gallois appeared to ease German opposition to the cost-cutting program, details of which could be revealed as soon as this week and likely no later than next week.

The compromise put forward by Gallois reportedly includes equal site closures in France and Germany but still would base A350 XWB production in France. German officials had objected to that work being centered in France but apparently have softened their stance since factory closings will be distributed equally.

the revised plan calls for more job cuts in France than in Germany, according to Chirac. "I believe that France is getting penalized a bit more than Germany as far as reorganization of employment is concerned based on what I am being told," he said. He
added that job cuts should be accompanied by "compensation" for dismissed workers.

USAF might buy "mixed" tanker fleet

By IAG | February 22nd, 2007 | Posted in airbus, boeing, eads, tanker, usaf | No Comments

In what may be a solution worthy of King Solomon, the USAF likely would seek to buy planes from both Boeing and Northrop Grumman, the top Air Force general said Wednesday.

As you read the linked story note the word use – some utility in a mixed fleet; a continual set of opportunities. To us this means Boeing likely gets the nod this time around and maybe net time the KC-30 team.

But his last statement "Lifecycle cost has to be as low as we can get it with the most capable airplane we can get" is really interesting. This one seems to favor the KC-30.

The truth may be that the USAF has to buy some KC-30s, sooner rather than later. That way the USAF keeps Boeing's prices very sharp. It also ensures the USAF has a choice of vendors. Isn't it amazing that this puts the USAF in the same place as many airlines? They all need Airbus to remain an effective airframe maker. Without it, Boeing becomes a monopoly which nobody wants. Airbus, despite its current woes, will get through its problems because those who fly planes need them.

USAF might buy "mixed" tanker fleet

By IAG | February 22nd, 2007 | Posted in airbus, boeing, eads, tanker, usaf | 2 Comments

In what may be a solution worthy of King Solomon, the USAF likely would seek to buy planes from both Boeing and Northrop Grumman, the top Air Force general said Wednesday.

As you read the linked story note the word use – some utility in a mixed fleet; a continual set of opportunities. To us this means Boeing likely gets the nod this time around and maybe net time the KC-30 team.

But his last statement "Lifecycle cost has to be as low as we can get it with the most capable airplane we can get" is really interesting. This one seems to favor the KC-30.

The truth may be that the USAF has to buy some KC-30s, sooner rather than later. That way the USAF keeps Boeing's prices very sharp. It also ensures the USAF has a choice of vendors. Isn't it amazing that this puts the USAF in the same place as many airlines? They all need Airbus to remain an effective airframe maker. Without it, Boeing becomes a monopoly which nobody wants. Airbus, despite its current woes, will get through its problems because those who fly planes need them.

France shows interest in Russian aircraft

By IAG | February 22nd, 2007 | Posted in airbus | No Comments

In a story out today from Russia, French officials are talking up purchases of Russian equipment. This includes fire fighting planes, UAVs and heavy helicopters.

To make appearances "equal", French Foreign Minister Philippe Doust-Blazy then said he "would be happy if Russia bought French Airbus passenger aircraft."

Did you know there are French Airbuses? That must mean there are German Airbuses, too? And maybe Spanish and perhaps even British ones. That statement must be driving Airbus management crazy. It reflects deepening political infighting. The statement is a gaffe and frankly an insult to the carefully created European company Airbus has become. Imagine how the Russians view those words.

Perhaps we outside Europe can begin to imagine the pressure Airbus managers are under and the level of frustration workers at Airbus plants must feel. Instead of using the current crisis to coalesce around a hardened corporate culture, Airbus people are watching a political unraveling which creates unnecessary uncertainty. The company has managed to create excellent products; now is not the time to lose faith. It would be so much better if the company were left alone to fix itself. They are very smart people, they can do it without politicians.