In Comparison To Those In Alabama Boeing Supporters Confident
Filed under: Airbus, Alabama, Boeing, Congress, EADS, KC-X, KC-X Tanker News, Northrop Grumman Corp., Syndicated Industry News, Washington
The Herald a newspaper in Everett, WA has an article discussing how happy and confident Boeing’s legislator supporters are with the new RFP released yesterday by the Air Force. This is the opposite as to how those from Alabama feel. Senator Patty Murray (D-WA) is quoted as saying, “Given a fair shot, Washington state’s workers will bring home this contract,” Murray said. “We have the skills, the technology, and the experience of having built the only combat-ready tanker to prove it.”
If Northrop Grumman (NOC) and its partner Airbus don’t submit a bid it will be hard for Boeing (BA) to not win the contract. Hence the happiness of their supporters.
Europe Breathes Life, Again, into the Airbus A400
It looks as if a deal has been finally made to save the struggling European A400M transport program. Beset by delays and cost problems the Airbus...EADS Facing Pressure Over A400M
There are reports that France and Germany are discussing holding EADS, the parent of Airbus, to their contract for the A400M military transport....Pressure Building On KC-X Award
The recent semi-private World Trade Organization (WTO) ruling in the Airbus subsidiaries matter is now inserting itself into the U.S. Air...WTO ruling might hurt EADS tanker bid
PARIS, Sept. 9 (UPI) -- The World Trade Organization's decision to uphold U.S. complaints that Airbus received improper subsidies might burden the Europeans' chances to win a multibillion-dollar U.S. Air Force contract for refueling tankers.
EADS expands to China
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.
Boeing 767 also has foreign components
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.
EADS Confirms Operating Margin Will Remain Below 10 Percent For The Foreseeable Future
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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