QUOTE AND NEWS
Clusterstock  Nov 27  Comment 
By Cyril Altmeyer and Tim Hepher PARIS (Reuters) - Airbus Group and Dassault Aviation aim to oversee the complete sale of Airbus's 4.8 billion-euro stake in the French planemaker by the end of next year, two people familiar with the matter...
Motley Fool  Nov 24  Comment 
Airbus is moving toward delivering the first A350 XWBs and with this it will be in direct line of confrontation with Boeing’s 787 Dreamliner.
TheStreet.com  Nov 21  Comment 
 A photo of the Delta A350-900 has been added to this story. NEW YORK (TheStreet) -- For years, every twist and turn in the saga of the development and introduction of the Boeing 787 Dreamliner has been carefully charted in the aviation...
Wall Street Journal  Nov 20  Comment 
Airbus Group NV on Thursday said the French government has agreed to place an order for 12 military airborne-refueling aircraft in a €3 billion deal.
The Hindu Business Line  Nov 20  Comment 
Wall Street Journal  Nov 19  Comment 
Airbus Group NV won a deal from Delta Air Lines Inc. for 50 long-range twin aisle jetliners, a major win for these aircraft over Boeing Co.
Clusterstock  Nov 19  Comment 
By Tim Hepher PARIS (Reuters) - An industrial drumbeat is picking up in European aircraft factories as Airbus borrows a new range of carmaking strategies to keep pace with record demand. Technologically, modern jetliners have more in common with...
Clusterstock  Nov 18  Comment 
SEATTLE (Reuters) - Airbus is aiming to deliver the first A350 jetliner around Dec. 12, with customer Qatar Airways being the first recipient, a representative of the airline said on Tuesday. The A350, Airbus' newest plane and made with...
newratings.com  Nov 18  Comment 
PARIS (dpa-AFX) - The French market is trading higher on Tuesday, after Germany's economic sentiment rose for the first time this year in November. Investors also cheered dovish comments from European Central Bank President Mario...
NPR  Nov 17  Comment 
The new design would seat passengers within a circular seating area rather than in short rows inside a tube.
Wall Street Journal  Nov 17  Comment 
Airbus Group will build five new Beluga transport planes as it seeks to secure its ability to meet increasing production demands.




 
TOP CONTRIBUTORS

The European Aeronautic Defence and Space Company (EADS.PA) is the dominant aerospace company in Europe today. Its largest subsidiary, Airbus S.A.S., is an aircraft manufacturing company based out of several European nations, with the majority of its operations in France, Germany and Spain. The majority of EADS's profits arise from Airbus' operations.

Airbus and its primary competitor Boeing control most of the commercial airplane industry. Recently, Airbus has faced a barrage of difficulties stemming from delays with both the A380 and A350. These delays could cost Airbus more than $4B in the form of penalties, higher production costs and order cancellations. As a result of these delays Airbus is also significantly behind Boeing in terms of its current production cycle. It may be years before they can launch a new model that can effectively compete with Boeing's latest aircraft. In a positive development for EADS, the company beat 1Q08 sales and earnings forecasts on the strength of strong sales across all major divisions other than Airbus.

So true. Honesty and everything recgoniezd.

Trends and Forces

Future of Aviation: Hub and Spoke vs. Point to Point

In investing such a great deal of its resources towards the development of the A380, Airbus has made a bet on the growth of the Hub and Spoke model of transport. If this model takes hold in the future, it will bode well for the A380 as it can cater to high-density routes. If a point-to-point model of transport takes hold, the existance of extremely high volume routes will be minimized thereby lowering the demand for the A380.

Fuel Costs

Airplane fuel costs account for a large part of airline operating costs. Fuel prices move in tandem with oil prices, their primary determinant. When fuel costs rise airlines have two choices: pass on higher fuel costs to passengers, decreasing consumer demand for travel, or absorbing costs direct order fewer aircraft. Rising fuel costs can also lead to greater demand for more fuel efficient aircraft.ly .

That's ralely thinking at a high level

Aviation Sector Demand

Demand for Airbus Aircraft is determined by the success comercial airlines, which is in turn related to the fortunes of the individual airline and the state of the Aviation industry as a whole. The Aviation industry is extremely cyclical in nature, with downturns resulting from freak occurrences such as terrorist attacks. In taking orders for Aircraft, Airbus takes a risk that orders may be later cancelled. Generally, when airlines place orders, they pay between 3-5 percent of the total costs on order, and the next 20% in installments over the next year or two, while the final 75% is paid upon delivery. This backlog represents a potentially high risk in the event of a recession or large default.

International Demand

The commercial aircraft industry currently lies at a turning point in the dynamics of international aircraft demand. Traditionally emerging markets have accounted for less than 5% of commercial aircraft demand but over the course of the next twenty years, 1 in 5 aircraft deliveries will be to emerging markets. With traffic growth rates of 10% a year, markets like India and China will be crucial to the successes of Airbus.

Aircraft Fleet Growth in India and China
Country Passenger Fleet Size in 2005 Passenger Fleet Size in 2025 Freighter Fleet Size in 2005 Freighter Fleet Size in 2025
India 190 959 8 134
China 758 26666 33 409

This trend continues to the rest of the emerging world in Eastern Europe, Latin America, the CIS, and Africa. Traffic Growth rates in the developed world will average 4-5% compared to 8-10% for the emerging world.

Competition

Airbus and Boeing dominate the manufacturing of commercial aircraft. Currently Airbus has 48% of future orders in terms of value and 51% percent of orders in terms of total aircraft. Airbus dominates in the category of narrow-body aircraft orders with its workhorse A320. Boeing dominates in the more lucrative category of small/medium wide-body orders.

References

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