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-   -   Airbus A380 Woes Continue (http://www.yssyforum.net/board/showthread.php?t=5348)

Saj_A 5th May 2010 02:45 PM

Airbus A380 Woes Continue
 
Quote:

Louis Gallois admission that Airbus’ flagship A380 will experience another period of languishing sales comes as no surprise.

What is surprising is that Gallois is “absolutely convinced” it would be a “success” ignoring the fact that despite being on the market for a decade, it has more than doubled in cost to produce yet cannot sell in any large enough numbers despite the heavy discounting to entice buyers in the first place.

Despite the biggest order boom in aviation history between 2005-2007, the A380 failed match the huge orders seen for the A330, A350, 777 and 787 and now has even less prospect of garnering future business as frequency growth takes charge.
More here.

Ash W 5th May 2010 04:40 PM

Pretty melodramatic thread title, for what is at the end of the day old news, regurgitated by a blog written by a one Saj Ahmad. Oh that's you isn't it? So in effect your are quoting your own website blog.

Nigel C 5th May 2010 06:26 PM

Ash, it may be trivial to some, but I think you left out a few things. Here, let me give you a hand...

:rolleyes::rolleyes::rolleyes::rolleyes::rolleyes: :rolleyes::rolleyes::rolleyes::rolleyes::rolleyes: :rolleyes::rolleyes::rolleyes::rolleyes::rolleyes:

Ash W 5th May 2010 06:51 PM

Too true Nigel.

By the way Saj, the meaning of the word Woe is:

n. archaic or literary 1 affliction; bitter grief; distress.
2 (in pl.) calamities, troubles.
3 joc. problems (told me a tale of woe).

Now if you were talking about the A380 program in it's development then yeah the title could well be applicable. But slow sales are far from a woe. Does Airbus seem all that concerned at present?

If we were talking about the continuing problems at Beoing with the 7late7 and 747-8 programs then yeah they would be woe's. Where are your reports of woe about these programs?

Saj_A 5th May 2010 11:47 PM

Quote:

Originally Posted by Ash W (Post 46270)

Now if you were talking about the A380 program in it's development then yeah the title could well be applicable. But slow sales are far from a woe. Does Airbus seem all that concerned at present?

If we were talking about the continuing problems at Beoing with the 7late7 and 747-8 programs then yeah they would be woe's. Where are your reports of woe about these programs?

One is clearly going to make more money than the other:

http://www.businessweek.com/news/201...-update1-.html

And contrary to your assumption about Airbus' concern about the A380, I would kindly refer you back to Tom Enders comments earlier this year and remarks from 2009 where he described it as a financial liability.

BUt I digress ;)

Ash W 6th May 2010 01:01 AM

The 'other' will make money for sure, of course only once it actually starts to make it to the customers respective fleets which is still some time off and like the A380 is several years behind schedule and over budget.

No one is arguing the A380 program in terms of sales has been well below expectations, but to say that the A380's woes continues and to have a blog entitled "Shoot the dog part five" is overly melodramtic and far from reality.

Over the past two years the A380 has proved itself in service and there clearly is a market for it but, yes sales are slow and it will take years to cover the costs of development and make a profit. All known facts and nothing new at all.

Dan Collins 6th May 2010 11:25 AM

Gotta admit, there's a LOT of negativity about the A380 program out there. Following many twitter accounts for Aviation info, seems like all of them have their regular spats about the A380 and never anything good to say - and they like to repeat themselves about it a lot.

Ah well. It's nothing new, it's not even interesting anymore. Even if there's truth behind it, it's been done so much it just feels like these particular writers just hate the project and want nothing but to see it burnt to the ground - or shot.

My take is different, as an aviation enthusiast I love to see them around our airports and I only hope that things improve for the program in the future to maybe get some positive news out there from time to time.

Dan

Robert S 7th May 2010 02:20 AM

Quote:

Originally Posted by Dan Collins (Post 46294)
Ah well. It's nothing new, it's not even interesting anymore. Even if there's truth behind it, it's been done so much it just feels like these particular writers just hate the project and want nothing but to see it burnt to the ground - or shot.

Nothing new at all... Boeing vs Airbus, Ford vs Holden... same old same old. At the end of the day, the A380 is operating and popular with pax, so the Boeing camp are going to be venting like Eyjafjallajökul... they've got nothing else until there's product on the ground... or in the air and in service more accurately.

Here is an illustration of what this process looks like. As you can see, both sides will continue without restraint and achieve nothing. :)

Dale C 7th May 2010 11:20 AM

Anyone that pretends the A380 isn't in a bad situation is burying their head in the sand IMO.

The article certainly is biased against the A380 and Saj is pretty pro-Boeing but the list of troubles for the 380 is long.

Most carriers having ordered the 380 have deferred it. I think the count is something like 13 out of 17.
The plane has garnered only 202 sales in 10 years, including the biggest sales boom in commercial avaition.
It has cost almost twice as much to develop as originally estimated, with figures ranging in the US$25-30m.
Production is still a joke. They won't manage 20 planes this year and the article mentions KE's 1st plane due this year has already been deferred until 2011. It's just too labor intensive. MH just had their 1st 380 deferred for 6 months, due to production issues. Why have these taken so long to sort out.
It does nothing other WB twins can't do, except carry more people. When the 747 era started, it had a huge capacity and range advantage over the 707/DC-8/VC-10.
It's been so long in development, that technology has passed it by. The 787/350 are far more advanced in materials, efficiency, engines......... It probably already needs more advanced and efficient engines and it certainly can't match the composite fuselage of the 787, nor the flying experience, with the 787 supposedly offering cabin pressurisation to 6000', higher humidity levels and a true anti turbulence dampening system, as well as those huge windows.
What's worst for the 380 IMO, is it's lack of flexibility. What happens in a world downturn? What routes do you switch your A380s to?
This all of course relates to the business case for the 380. Without exception, all that I know that have flown on the 380 have been exceptional in their praise for it. Maybe that can be it's saving grace, but I doubt it.

Andrew M 7th May 2010 08:40 PM

The A380 is a lovely plane to travel in, and yes of course people are choosing it over the B747 and to a much lesser extent the B777.

Once the B787 starts to enter service with nice new interiors, lots of "cool features" it will become the plane to fly on.

I doubt the A380 will ever be a huge success, most of the airlines that need it, have already ordered it.

The B787/A350 will be winners for both Boeing and Airbus.

Philip Argy 7th May 2010 11:12 PM

The A380 is a very comfortable a/c to travel in - certainly quieter and smoother than the 747s. But whenever I have travelled there has been some little glitch with brakes or IFE that takes the gloss off a little and suggests some ongoing design or build issues. I wouldn't put it higher than that, but I would expect that by now these issues had been sorted and the fact that they are ongoing has irritation value I'm sure for the operators as much for the pax.

Philip Argy 8th May 2010 07:17 AM

The discussion was about whether the A380 issues have been overstated. I was giving my personal perspective. You have given yours. Readers and FFs can form their own views.

Andrew M 8th May 2010 04:31 PM

While it may have a better dispatch rate, the number of A380's that need to be sold to be profitable continues to increase.

I don't think the A380 will ever make a true profit for Airbus!

There are only a small handful of airlines that MAY order the A380 and even then, doubtful it will be another 150-250 that they need to make a profit.

Mike W 8th May 2010 09:45 PM

Too much too late.

Mike W 9th May 2010 01:42 PM

So check this.... we are lucky enough to get an internationally recognised aviation analyst contributing to this site and this is how it's treated over at a.net

http://www.airliners.net/aviation-fo...802492/#menu27

Quote:

cpd From Australia, joined Jun 2008, 2511 posts, RR: 42
Reply 35, posted Thu May 6 2010 01:11:28 your local time (1 day 21 hours 35 minutes ago) and read 22354 times:

Quoting PM (Reply 27):

Saj predicting bad news for Airbus? Whatever next?!

He was on the Sydney Airport Message Board recently spreading Airbus doom and gloom as well, pointing to his blog. Received a lot of rolled eyes from forum regulars
No wonder they say overseas we're insular (and on this site IMHO) elitist. C'mon, give it a break will ya.

Andrew M 9th May 2010 05:54 PM

As with any forum there are those with "vested interests" so of course people will be there to defend Airbus and Boeing much more than just being a Forum fanboy.

Saj A - Thanks for posting on here

Steve S... 2 18th May 2010 01:09 PM

No tears from me if they ever stopped production... lol.

Andrew McLaughlin 18th May 2010 01:58 PM

Guys

Apart from the odd one or two :rolleyes:, most passengers agree that the A380 has introduced new standards of passenger comfort to airline travel - I've travelled on QF, SQ and EK and would pick an A380 ahead of any other airliner currently flying if given the choice, except perhaps a 77W/L.

That said, Airbus hasn't done itself any favours with the aircraft's industralisation issues, slow production ramp up, and range of options offered to launch customers, and I believe the jury is probably still out on whether Airbus will ever sell the ~500 required to turn a profit on the program.

I also doubt the launch airlines have configured the A380 in the best and most efficent way, hence QF's decision to re-configure its last eight jets, and may not be using it to its potential either. I guess later configurations and routing will tell. The IFE problems that people complain about are airline furnished equipment, and generally not related to the aircraft itself.

matthew mcdonald 18th May 2010 02:48 PM

I couldnt agree more with everything you have said Andrew.

David Knudsen 18th May 2010 02:58 PM

Quote:

Originally Posted by Andrew McLaughlin (Post 46762)
Apart from the odd one or two

IFE problems not notwithstanding? :) Friends and relatives who've flown on the A380 all comment to me how quiet and smooth it was, especially the landings. I remember my dad used to tell me the same thing about the 747's when I was a young fella.

Mike W 20th May 2010 08:44 PM

Quote:

Originally Posted by Andrew (Post 46385)
The problems with the A380 to-date compared to when the 777/744 or other Airbus aircraft were introduced have been less significant.

Dispatch remains at 97-98% which is better then what the 744 was at the same stage of development and when the 744 was introduced it was below 90%. Industry standard is 98.5%

A recent publication might shed some light on causes of reliability issues to-date:

Airbus are measuring themselves against an aircraft brought to market 20+ years ago? One would think advancements in technology (despite associated increases in complexity) would render improvements in despatch reliability. Surely?

Mike W 20th May 2010 09:01 PM

http://www.fleetbuzzeditorial.com/2010/05/17/

More on the "3Fatty" from FBE

Last couple of paragraphs are interesting
Quote:

Airbus will see that it has little option but to continue with the program and generate what little revenue it can from the backlog, given that the majority of the customers secured and continue to secure stunning, industry leading discounts on the jet to spur sales. Cancelling it wouldn’t recover the sunk costs but in hindsight, the money could have been better spent elsewhere and if the A350XWB hits a snag due to the resource drain, then it’ll be directly attributable to the A380 and the continued cost escalation on that program.

In five years time, the A380 will be a 20 year old concept, have ageing engines and will prove even less flexible as airlines continue to snare A330’s, A350XWB’s, 777’s and 787’s.

Make no mistake - those who have flown the A380 will know that its a fantastic airplane to fly on. Spacious, quiet and sports some of the newest technology available.

The A380 is best regarded as a $25 billion write-off and an act of industrial irresponsibility,” says Richard Aboulafia.

At worst, the A380 will far and away remain the biggest financial disaster the commercial aerospace industry has ever witnessed or ever likely to.

Ash W 21st May 2010 12:15 AM

Yet another article by Saj so I will take it with a grain of biased salt!

Saj_A 21st May 2010 02:55 AM

Take it with whatever you wish. Doesn't change the fact the A380 is a financial disaster, just as my colleage Aboulafia asserts.

But then, its always easier to shoot the messenger rather than debate the message.

Andrew McLaughlin 21st May 2010 10:10 AM

Quote:

Originally Posted by Saj_A (Post 46861)
Take it with whatever you wish. Doesn't change the fact the A380 is a financial disaster, just as my colleage Aboulafia asserts.

But then, its always easier to shoot the messenger rather than debate the message.

And Saj, did you seek anyone else out to give their opinion of the A380's finanical prospects to perhaps balance your own (obvious) opinions, or did you just go to Aboulafia knowing he would back your own assertions up?

You're not propogating the debate by only using the opinions and comments of people that you know will support your own! :rolleyes:

matthew mcdonald 21st May 2010 10:25 AM

Quote:

Originally Posted by Saj_A (Post 46861)
But then, its always easier to shoot the messenger rather than debate the message.


Its pointless debating the message when no amount of debating will get through to you!

Saj_A 21st May 2010 02:54 PM

Quote:

Originally Posted by Andrew McLaughlin (Post 46870)
And Saj, did you seek anyone else out to give their opinion of the A380's finanical prospects to perhaps balance your own (obvious) opinions?

Who should I have asked when Airbus themselves (from Enders downwards) note that its a financial drain?

Classic example of failing to address the A380s miserable financial situation and instead turn the focus elsewhere. And if you were even half connected to the debacle to the A380 as I am, you'd know that's its not just Ricahrd and I who are critical of its non-existent business case. I'll leave that to you to find out sir.

:)

Andrew McLaughlin 21st May 2010 04:02 PM

Quote:

Who should I have asked when Airbus themselves (from Enders downwards) note that its a financial drain?
So, "Is the A380 a financial drain?" the best question you've got to ask? :eek: Hmmm... :rolleyes: A drain at the moment doesn't necessarily translate to a...
Quote:

...financial disaster...
I'm not going to get into a ****ing contest with you about who's connected to whom. Most of the people on this forum know me and my credentials - I'll let them judge.

Nah, bugger it - just last week I spoke with Tom Enders, Tom Williams, John Leahy and Richard Carcaillet about just this subject and others, as well as getting opinions from several notable commentators who have no allegience to Airbus or Boeing.

I (and they) agree it's a financial drain, but with 10-15 years of production ahead of it, it's way too early to be calling the A380 a financial disaster!

Saj_A 21st May 2010 04:42 PM

So a program that has more than doubled in cost to over $25bn and still growing due to cost overruns and design changes, coupled with the inability to price the airplane profitably is not a financial disaster?

:)

And if its about credentials/connections - I never boasted about mine or impugned yours, stick to the topic instead.

And in 15 years time, the A380 will be a 25 year old dinosaur with about as much sales/profit success as the ageing 767. Over half the A380 customers and backlog continue to be deferred, adding yet more production, planning, staff and supplier costs. But of course, they don't matter from a financial perspective, do they?

But I digress...

Andrew McLaughlin 21st May 2010 04:45 PM

Quote:

Originally Posted by Saj_A
And if its about credentials/connections - I never boasted about mine or impugned yours, stick to the topic instead.

Hmmm...:rolleyes:

Quote:

Originally Posted by Saj_A
And if you were even half connected to the debacle to the A380 as I am...

But I digress...

Ash W 21st May 2010 04:53 PM

Quote:

Originally Posted by Saj_A (Post 46890)
So a program that has more than doubled in cost to over $25bn and still growing due to cost overruns and design changes, coupled with the inability to price the airplane profitably is not a financial disaster?

:)

And if its about credentials/connections - I never boasted about mine or impugned yours, stick to the topic instead.

And in 15 years time, the A380 will be a 25 year old dinosaur with about as much sales/profit success as the ageing 767. Over half the A380 customers and backlog continue to be deferred, adding yet more production, planning, staff and supplier costs. But of course, they don't matter from a financial perspective, do they?

But I digress...

Saj, here is an article suggestion. How about a write up of the 747-8, which using your logic is, even before first delivery a 41 year old dinosaur which is struggling for sales and costing Boeing a lot of money.

Saj_A 21st May 2010 04:53 PM

Read it again - I said debacle. I made no reference to peope at Airbus etc. Its completely plausible we have different lines of communications/sources but I did not claim you were not informed. Nice try plugging words in on my behalf though, I'll give you that.

Come back to me when the A380 makes Airbus some profit :D

Andrew M 21st May 2010 11:54 PM

Quote:

Originally Posted by Andrew McLaughlin (Post 46889)
I (and they) agree it's a financial drain, but with 10-15 years of production ahead of it, it's way too early to be calling the A380 a financial disaster!

So who else is actually going to buy the other 200-300 that is needed to break even ?

10-15 years of sales.... another 200-300 A380 sales.....

Highly doubtful.

Of more concern will be the price of oil at that time me thinks!

Mike W 22nd May 2010 08:22 AM

Quote:

Originally Posted by Andrew McLaughlin (Post 46889)
Nah, bugger it - just last week I spoke with Tom Enders, Tom Williams, John Leahy and Richard Carcaillet about just this subject and others,

And they're hardly going to admit the 3fatty is a lemon now are they?

I'll qualify this by referring the plane as a financial lemon for Airbus, EADS, their European Government benefactors, et al as opposed to the craft itself


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