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Tough Times Ahead For Airbus

I previously talked about how Airbus lost FedEx as a customer to Boeing since FedEx favored purchasing cheaper and already available Boeing 777 freighters. In addition, I had mentioned Lufthansa’s purchase of 20 new 747’s.

Businessweek has another article on Airbus’ increasing financial woes and how analysts are thinking that Airbus will have more woes in 2007. Much of Airbus’ concerns are stemming from the fact that the A380 is undergoing further delays. As of right now, the A380 production is about two years behind schedule and a driving factor in Lufthansa to purchase more 747’s to supplement their fleet.

I think that the defections taking place is definitely going to force other airlines to consider purchasing more easily available and cheaper Boeing aircraft. However, at this time, the article notes that customers are upset, but aren’t “rushing for the door.” The article also points out that rising fuel costs has encouraged customers to take another look at Boeing’s more fuel efficient 777 wide-body long haul jet and their new and upcoming 787 “Dreamliner”. It would be nice to see the Airbus A380 in person, however, I am more eager to see other customers pursue Boeing as a viable alternative and a more productive company.

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