Thursday, January 24, 2008

While Boeing logically chose the mid-sized path, Airbus planned big... and it all backfi red!

Simply stated – high-flying vision which Airbus clearly lacks as Craig Fraser, Analyst, Fitch Ratings, expressed exclusively to B&E as, “TheL. Gallios, CEO, Airbus Boeing 787 has the more favourable market outlook as the market for an aircraft the size of the 787 is larger than the market for a jumbo like A380! Currently, we rate EADS’s credit quality (Airbus’ parent) ‘A-’ with a negative outlook while Boeing’s is currently rated ‘A+’ with a stable outlook...”

Boeing’s twin-aisle aircraft s also provide the right sizes to fill-up demand gaps in terms of seat capacities while Airbus, below its 555-seater A380, has just the A340 which offers a seating capacity of Large wings, small pride!323 seats – a gap of 232 seats! Is it any wonder then Teal Group Corp. estimates Boeing to capture 62% of the market by 2015? Boeing also scores higher on its risk-sharing model as its Risk Sharing Partners (RSPs) share almost 80% of all ‘new model development’ R&D risks. Louis Gallois, CEO, Airbus also confessed, “Our long term future is at stake if we don’t act now...’ So while ‘wiring problems’ rattled Airbus’ & gave smiles to the American, you could shout – “Crisis in EU?! Yes & short circuits too!”
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Source: IIPM Editorial, 2008

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative