QUOTE AND NEWS
Forbes  6 hrs ago  Comment 
He called it “a pretty good year,” but Airbus Group CEO Tom Enders could barely contain his glee at announcing the company’s 2014 record annual results last week in Munich, where the German headquarters of the pan-European company is...
Insurance Journal  Mar 2  Comment 
Allied World Europe and Airbus have entered into a relationship whereby Allied World will offer complimentary aircraft hull insurance to airlines that purchase Airbus’ Runways Overrun Prevention System (ROPS). ROPS is an innovative,...
Motley Fool  Mar 1  Comment 
Why buy a gigantic Airbus A380 or Boeing 747 when you can squeeze more seats into a smaller plane instead?
Yahoo  Mar 1  Comment 
Airbus Group Chief Executive Tom Enders has given the strongest hint yet that he may seek a new term as head of Europe's largest aerospace company, telling a French newspaper he does not feel ready for retirement when his mandate expires next...
Wall Street Journal  Feb 27  Comment 
Airbus’s record dividend indicates confidence that clear skies are ahead for the company, and for the airline industry.
Wall Street Journal  Feb 27  Comment 
The Economic Times  Feb 27  Comment 
Shares in Airbus were up 6.1 per cent, representing a gain in market value of 2.5 billion euros roughly the price of six A380 superjumbos.
The Hindu Business Line  Feb 27  Comment 
Aircraft maker Airbus said it would cut the production rate of its A330 widebody jet to six a month from the first quarter of 2016 as it also ramps up production of its top-selling A320 family.
Wall Street Journal  Feb 27  Comment 
Airbus Group said it would boost production of its popular A320 single-aisle jet as Europe’s largest plane maker reported a 59% rise in profit for last year despite problems with a big military aircraft program.
Wall Street Journal  Feb 27  Comment 
Reuters  Feb 25  Comment 
Airbus Group may take up to 500 million euros in charges for the latest delays to its A400M military transport plane when it reports 2014 earnings on Friday, analysts said.
Clusterstock  Feb 24  Comment 
By Tim Hepher PARIS (Reuters) - European planemaker Airbus is talking to suppliers about the possibility of raising production of its popular A320 family to 50 jets a month as early as 2017, narrowing a gap with rival Boeing , a senior industry...




 
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

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki