EADS expands to China

September 28, 2008 by Dagpotter · Comment
Filed under: EADS, commercial aviation, production program 

EADS opened its Airbus assembly facility in China. This is to build A320 passenger aircraft. EADS is finishing these aircraft in China for two main reasons - market growth and costs. The aircraft will be used by Chinese airlines to serve the rapidly growing domestic market. Costs will be lowered by reducing shipping costs as many parts of the aircraft will be made in China. It is also probably due to the lower costs of making parts in China directly. It is also another example of the growth of globalization in the aerospace industry.

See the press release at DW-World.de.

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Boeing 767 also has foreign components

March 7, 2008 by Dagpotter · Comment
Filed under: Boeing, Contract Awards, EADS, Northrop Grumman Corp., U.S. Air Force, commercial aviation, logistics 

As this article in the Seattle Times states, at least 15% of the 767 is made overseas. This includes some major structural parts of the aircraft. That is the problem with modern systems today. All of them rely on foreign suppliers to provide lower prices and some efficiencies. This is even more so with the 787, Boeing’s newest aircraft. Yes, the Airbus will have more overseas content, but it is in the best interest of EADS to move as much as that to America where it can.

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EADS Confirms Operating Margin Will Remain Below 10 Percent For The Foreseeable Future

December 28, 2007 by admin · Comment
Filed under: EADS, Restructuring 

According to a report in a German newspaper, EADS does not expect to reach an operating margin of 10% until 2015. I’d be amazed if they attain it then, because EADS has never attained an operating margin this high before. Its best performance ever was in 2005, when it had a margin of 8.3 percent. Since then, margins have plunged due to the rise in the Euro, and troubles at Airbus. Although, EADS has taken some steps to improve their business, such as selling six Airbus plants, it is clear from this forecast that the company has a long way to go. Given that a prediction of operating margins seven years ahead has little credibility, what EADS is really saying is that there will be no margin recovery for the foreseeable future.

More details on the story can be found at Agency France Presse and MSNBC

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