QUOTE AND NEWS
Clusterstock  Sep 5  Comment 
Emirates Flight EK203 was quarantined at New York's JFK International Airport after numerous passengers reportedly fell ill on board. The exact number of passengers and crew that became sick during the flight remains in...
Reuters  Sep 4  Comment 
AirBaltic, the largest European customer for Airbus SE's A220, expects to have 14 of the 130-seat jets by year's end, as production issues and engine woes that once delayed deliveries have eased, the airline's chief executive said on Tuesday.
Motley Fool  Sep 4  Comment 
Hawaiian Holdings will have an easier time growing earnings per share in 2019 than many investors expect -- largely because the company has faced some unexpected challenges in 2018.
Yahoo  Sep 4  Comment 
Norwegian Air (NWC.OL) expects to announce further aircraft sales by the end of the year including used Boeing 737s as well as some of the new Airbus planes it has on order to reduce it debt commitments. Norwegian Air has committed to acquire 210...
Flightglobal  Sep 4  Comment 
Air traffic control communications have revealed that an American Airlines Airbus A320 erroneously lined up for an approach to Page Field airport in Florida, rather than the nearby Fort Myers.
Clusterstock  Sep 3  Comment 
The Airbus A380 superjumbo is the largest commercial airliner in history. The A380 was once thought to have the potential to revolutionize air travel. Instead, the 331 Airbus superjumbos sold now play more of a niche role for flights...
Flightglobal  Sep 3  Comment 
Iberia has retrieved an Airbus A340-600 damaged in a hard landing at Quito, but has yet to determine when the aircraft will re-enter airline service.
Clusterstock  Sep 2  Comment 
The Airbus A350-1000 entered service earlier this year with Qatar Airways.  It's the latest in a new generation of fuel-efficient, carbon composite airliners to launch in recent years. The A350-1000 is seen as a rival for Boeing 777-300ER and...
Clusterstock  Sep 1  Comment 
The middle seat is the worst seat on a plane. It's cramped and inconvenient. You can avoid the middle seat by booking your flight early or avoiding basic economy tickets. You also decrease the likelihood of getting a middle seat by carefully...
Flightglobal  Aug 31  Comment 
GoAir expects that increased availability of spare leased Pratt & Whitney PW1100G geared turbofan engines will soon allow it to fully utilise its Airbus A320neos.




 
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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