PrintNovember 10, 2006
Airbus Must Thread a Needle
The past week, which saw Europe celebrating the triumph of America's Democrats, produced more bad news for Airbus. Europe's champion 'social enterprise,' intended to serve the interests of more than just shareholders, and its chosen instrument rival to America in the strategically—important aerospace industry, has almost no room for error. If it succeeds in maintaining its position as a full line rival to Boeing, it will represent a brilliant and desperate achievement.In order to remain a viable competitor in the production of advanced airliners, Airbus must thread a needle. Everything must go according to plan, and self—serving interest groups and leaders must be willing to compromise in order to assure the survival of the enterprise. Costs must be dramatically cut by dropping 80% of existing suppliers (mostly European firms), as announced on Monday and concentrating work in the hands of firms who can cut costs by a substantial amount. The strength of the euro...(Read Full Article)
