Airbus In Trouble


The Franco German aviation company, Airbus, is facing challenges from all sides. The move to disaster is picking up pace and each day makes it that much harder to hault the slide.

FedEx has switched from Airbus to the rival Boeing 777 as the logisitics company loses patience with the continual revisions to the delivery schedules for varients of the A380 Super Jumbo.

The FedEx decision to cancel Airbus orders and order 777s started a fall in Airbus stock values and gains in Boeing stock prices. It looks increasingly likely that this will lead to attempted massive support from the German and French Governments for the failing Airbus consortium which may be blocked under EU subsidy rulings.

Other “customers” are now considering cancellation of Airbus orders and a switch to Boeing for 777 and 787 aircraft.

The first of a series of senior Airbus personnel have resigned amidst claims that Airbus is now ungovernable without a major restructuring plan.

Fears for jobs in the United Kingdom grow as industry pundits forecast that the German and French Governments will demand British job losses to safeguard German and French jobs in return for bailing out the faultering company. Britain is in a poor position to counter such moves now that BAE has sold out its stock holding in Airbus to limit future liabilities and to concentrate on its profitable and expanding military business which has seen acquisition of companies in the United States to strengthen trading.

It all seems such a sea change when only months ago Airbus executives were crowing, claiming to have beaten US aviation giant Boeing into a poor second place for commercial airline business.

What went wrong?

Some now see Airbus as a metaphore for the United States of Europe, claiming that Eurocrats are stifling industry while claiming continual triumphs worthy of the annual reports from the 143rd Urals Tractor plant during the unlamented days of the Soviet Union.

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