JSR…
if Airbus really make ( assemble) 56% of world airllines efficiently and sell it market prices without EU banks expsoure (who needs its own baiouts). it wont need constant bailouts dealing with one transport project. i have feeling this Airbus fighter project is sneaky way of bailout.
Airbus and Boeing have dominated the 100+ seats airliner market for decades. Both companies will give deep, deep discounts if they really want a particular customer / a particular order. Is Airbus profitable on civil aircraft? Yes. Is Boeing profitable on civil aircraft? Yes. Do all sales make a profit? No. Initially civil airliners are made at a loss (cost more to manufacture and assemble than the amount customers pay) because the first customers are not going to pay much, much more than the price the manufacturer will want after production reaches breakeven. For example, if Boeing knew the first few hundred B787 would cost $400 million on average to make and Boeing wanted the customers to pay that for each one, there would be no sales of B787’s.
Military aircraft are different. They are bought by governments. After big and expensive development problems with the A400M Airbus told the government customers that they would not continue with the project unless the price was raised from the price in the contracts. If the governments had insisted that Airbus had to honour their contracts, Airbus would have survived financially but the governments buying the A400M nearly all accepted paying a higher price. In my opinion the governments were stupid to accept. They could have received their A400M’s at a much lower price. Instead of Airbus paying the bill for A400M development problems (which would reduce profits and dividends to shareholders), governments chose to pay.
Sign In
