EADS unveiled the A400M military aircraft to the public for the first time

EADS unveiled the A400M military aircraft to the public for the first time, in Seville. The A400M’s official roll-out ceremony, in the meantime, is scheduled for June 26. Carlos Suarez, CEO of EADS-Casa and managing director of Airbus Military, the EADS subsidiary in charge of the A400M military transport aircraft programme, confirmed that the aircraft’s maiden flight would take place on July 31, as scheduled. Yet, he admitted that “there are still a few risks” looming over the programme. The engine tests are now proceeding normally and the first system tests have not revealed any major issue so far. But the flying test bed is running a little late, says Les Echos. This is why Mr Suarez said the company preferred to speak of a target “in the summer” for the first flight.

Boeing CEO Jim McNerney told employees via the group’s website

Boeing CEO Jim McNerney told employees via the group’s website on Monday that he was confident about the new schedule for the 787 Dreamliner programme. “It is an achievable, high-confidence plan”, his message said. “We have taken a more conservative approach to setting our milestones, based on our experience to date and the idea that being wrong yet again would be more of a burden to our customers than taking a little more time to get it right”. Mr McNerney emphasised on the “fundamental, game-changing innovation” brought by the 787, which explains why the programme is more complex and risky than previous ones. He also defended Boeing’s outsourcing model: “The global-partnership model of the 787 remains a fundamentally sound strategy”. But he also conceded some errors in the supply plans, saying “we will modify our approach somewhat on future programmes”. Boeing, which unveils its quarterly results today, is also expected to give a public update on the Dreamliner. The Seattle Times (22/04)

EADS sets a foot on the lucrative homeland security and public safety market.

The company announced yesterday that it had acquired California-based company PlantCML, the leader of the US civil security sector with a 70 % market share. The aerospace group paid $ 350M (Euro 220M) to US investment fund Golden Gate Capital to acquire the company, which is implanted in several major US cities, including New York, Chicago, Los Angeles, Houston or Phoenix, as well as in Mexico and Canada. PlantCML has an annual turnover of about $ 200M and employs just over 600 people. Its emergency-response activities will be fully integrated into EADS North America. Louis Gallois declared: “Thanks to this acquisition, EADS strengthens its position in the field of security systems and solutions, while realising our wish to invest in expanding our capacities and US foothold”. The homeland security and public safety market is very profitable in the US, where it reports two-digit growth rates.

Louis Gallois reasserted that EADS had “no other choice” but to invest in the dollar zone.

The group’s industrial activity must be “more present in the dollar zone”, without giving up Europe, if EADS wants to be “on an equal footing” with Boeing. Mr Gallois told the Berliner Forum Zukunft that the company was pushed to do so by “the currency-exchange issue”. The euro yesterday rose to a historical high, at $1.6019. “And serious analysts tell us that it is not over yet. As an entrepreneur, I must be prudent, I have no means to tell whether the dollar will rise in future. I do not know. I cannot take the chance for the sake of the company, so I must consider the situation as it is”, he declared. Mr Gallois emphasised that the cost of an engineer in the US is 30 to 40 % lower than in Europe at present. He also pointed out at the “paradoxical situation” of EADS, the order books of which are full, while “its margins are eroding” due to the weak dollar. This is why the group is considering several options, including expanding its supply network outside of the euro zone. He called on the group’s suppliers to help it reduce costs by moving more of their own production to the dollar area. AFP (22/04), Reuters (22/04), DPA (22/04)

Airbus announced that it will increase its aircraft list prices from May 1,

mainly due to the weak dollar and higher raw material prices, especially for metals. The price rise will be “higher than normal”, added the group. “This is the first time since 2003 that Airbus has enforced a higher-than-normal price increase”. Thus, in addition to the expected 2.74 % price increase, Airbus will add $ 2M in average per single-aisle jet and $ 4M per long-haul and A380-family model. The company explained that prices for metal products –notably titanium, steel, aluminium and aluminium-lithium, which account for at least 40 % by weight in aircraft design- have gone up “by at least 6.5 %” in the course of 2007. Les Echos points out that these prices are theoretical and that airlines often manage to negotiate rebates. AFP (22/04), AFX (22/04), Le Figaro Economie, Les Echos, La Tribune, La Croix, Hamburger Abendblatt, The Wall Street Journal Europe, International Herald Tribune, ABC

Airbus and Boeing join forces in an environmental effort.

The two plane makers signed an agreement, yesterday in Geneva, to work together in order to reduce the impact of air transport on the environment. The agreement was signed on the sidelines of the Aviation and Environment Summit. Thomas Enders declared: “Competing on the environment issue brings no competitive hedge to our companies”. Scott Carson, head of Boeing Commercial Airplane, echoed that “Airbus and Boeing are great rivals and this was decisive in our objective and efforts to make aviation more efficient”. Still, as far as climate change is concerned, “we work to reach the same goal, the reduction of the impact of aviation on environment”.

Social pressure mounts at Airbus France, where trade unions have called for a strike this week.

The federation of trade unions thus wants to protest against Airbus’s decision to regroup its German sites within a holding –to be 100%-owned by EADS- while proceeding with the sale of the French sites. The unions denounce the difference of “treatment” between France and Germany. In response, Thomas Enders conceded that Airbus was selling off its sites “at the worst timing”, due to the falling dollar and credit crisis, but the group will “keep on going the same direction”. Mr Enders said he was not “too impressed” by the French unions’ calls for a strike, adding “strikes happen” anyway. AFP (22/04), DPA (22/04), La Tribune, Le Figaro Economie, France Soir, L’Humanite

Thomas Enders said he did not expect a negotiated settlement between Airbus and Boeing

Thomas Enders said he did not expect a negotiated settlement between Airbus and Boeing over the ongoing state subsidies dispute before the WTO rules on the case. He recalled that Airbus had previously made several approaches to suggest negotiations but they had not been fruitful. “I still believe that a really sustainable solution has to be negotiated”, he nonetheless told Reuters. Reuters (22/04)

Biman Bangladesh Airlines has ordered four 777-300ER and four 787-8 aircraft from Boeing.

The contract is worth up to $ 1.78Bn at list prices. No delivery schedule has been unveiled. AFP (22/04)