Airbus and Boeing are challenged by a new competitor in China.
China officially set up a new aeronautical manufacturer –called Commercial Aircraft Corporation of China- which ambitions to 
develop a 150-seat aircraft by 2020. The Chinese State, which thus wants to reduce its dependence on Boeing and Airbus, will be the new group’s main shareholder, with a 30 % stake, and manufacturers Avic I and Avic II are expected to take a stake. Les Echos adds the new entity’s capital could also be opened to foreign investors, within the framework of industrial alliances. Financial Times Deutschland recalls that Thomas Enders recently acknowledged that the Airbus-Boeing duopoly would be challenged. (more…)
The Boeing 787 will be postponed by at least two years.
Air Canada, for instance, who ordered 37 units, expects to take delivery of its first 787s in January 2012, 30 months later than initially planned. In a filing with the US Securities and Exchange Commission, aircraft leasing company ILFC said its planes would be delayed “an average in excess of 27 months per aircraft”. Qatar Airways, therefore, has exercised options on Boeing 777s to pursue its development in the meantime. Meanwhile, ANA is in talks with Boeing to use new 767s to meet its interim needs. A source said these 767s could be a substitute for penalty payments. Seattle Post Intelligencer cites analysts calculating that the delays could cost Boeing $ 4Bn or more in fines. Le Figaro Economie, Suddeutsche Zeitung, Seattle Post Intelligencer (09/05)
Several Democratic senators in the US asked the Bush Administration to conduct a probe into the EADS/Northrop Grumman consortium’s claims
Several Democratic senators in the US asked the Bush Administration to conduct a probe into the EADS/Northrop Grumman consortium’s claims that it would create 48,000 jobs in the US by manufacturing aerial refuelling tankers for the Air Force. In a joint letter, senators from Washington, Michigan and Oregon wrote that they were “troubled by the inconsistent job projections” made by the two partners and had “questions about what types of jobs will be created”. In an e-mailed statement, Northrop Grumman spokesman Brandon Belote said the company had “more than adequately explained how it arrived at its accurate projection of 48,000 new direct and indirect jobs for the KC-45”, adding that it had applied “an accepted jobs estimate formula used by the Department of Labour”. (more…)
It is no longer surprising to see major aircraft programmes being delayed
Since the A380 delays, it is no longer surprising to see major aircraft programmes being delayed, comments Suddeutsche Zeitung. Boeing is currently facing similar problems with its 787 programme. Due to the growing complexity of technology used on new planes, it is becoming tougher to remain on schedule. The German newspaper points out that manufacturers themselves have trouble predicting their schedules, in fact. A review of the A380 production schedule is being led at Airbus. Suddeutsche Zeitung
Finmeccanica and EADS are interested in acquiring US defence electronics group DRS Technologies.
According to sources close to the matter, Finmeccanica has made an offer –reportedly worth € 3.5Bn- to acquire DRS Technologies. The Italian group, which is said to be waiting for an answer from DRS’ board, declined to comment. Other industry players look at DRS with interest, including EADS. Ralph Crosby, CEO of EADS North America, confirmed on Friday that “we are seriously watching this case”, adding the company particularly sought to expand into the electronics sector and to pursue mid-size acquisitions. “We are interested in a strong presence in the US”. Asked to comment about possible talks between DRS and Finmeccanica, Mr Crosby said he did not think the two groups had reached an agreement yet. (more…)
Al Israel Airlines has ordered four 777-200ER aircraft from Boeing.
The deal, valued at $ 850M (€ 550M) at list prices, includes options for two additional units as well as purchasing rights for the 777-300ER model. Negocio points out that Boeing defines the 777 as the most fuel-efficient aircraft of its category. Negocio
Marco Fuchs, CEO of OHB, speaks of the company’s plans for the future after the failed negotiations to acquire Airbus plants.
In an interview with WirtschaftsWoche, Marco Fuchs, CEO of OHB, speaks of the company’s plans for the future after the failed negotiations to acquire Airbus plants. According to Mr Fuchs, the failure of the talks will not considerably affect the company’s business. He points out that for OHB becoming a financial partner to the A350 XWB programme was “problematic” given the size of the German group. WirtschaftsWoche (10/05)
Workers at the EADS plant in Laupheim temporarily downed tools
Workers at the EADS plant in Laupheim temporarily downed tools on Friday. Amid concerns about the current talks to sell off the plant, a majority of the 1,000 workers ended their shifts two hours earlier, said an IG Metall union spokesman. They thus voiced dissatisfaction at the lack of information from the management regarding the progress of the negotiations. Besides, IG Metall wants to make sure the Laupheim site will participate in the A350 XWB manufacturing. Airbus stated that the sale talks are supposed to be concluded “within the coming weeks” as scheduled. Frankfurter Allgemeine Zeitung recalls that both Germany’s Diehl Aerospace and France’s Zodiac are said to be interested in the Laupheim site. Frankfurter Allgemeine Zeitung (10/05)
EADS holds a board meeting.
Two weeks ahead of the group’s annual shareholders meeting, scheduled for May 26 in Amsterdam, the board of EADS meets today. Several topics should be discussed, reports Le Figaro Economie: the group’s quarterly results to be unveiled tomorrow, in a context of weak dollar and high fuel prices; the reinforcement of Power 8, after EADS dropped its Zephyr plant sale programme; the development of the A350 XWB programme, which Airbus will have to assume alone, in consequence; and the progress of the A380 superjumbo, amid rumours of a fourth delivery delay. Aujourd’hui en France goes back over the letter sent by Thomas Enders to Airbus’s employees, which was unveiled by Les Echos last week. (more…)
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