Airbus unveils new saving plans
Louis Gallois, head of Airbus parent EADS, said the firm would expand production outside the eurozone area -including opening a plant in Tunisia. Airbus set out the plans in talks with its unions, while Mr Gallois made his comments in an interview with Le Monde.
The weak dollar has forced EADS to expand its original savings plan. The original plan, unveiled in 2007 was based on the euro being worth $1.35; after rising as high as $1.60 in July, it is now worth $1.41. The latest Airbus plans are based on an exchange rate of $1.45.
Franco-German EADS is vulnerable to the weakness of the US currency because most of its products are paid for in dollars while most of its expenses are paid in euros. According to EADS, every one cent movement in the dollar means a difference of $100m to its operating income.
In July, EADS announced it would ask all of its units to play their part in shouldering the burden of the weak dollar. Airbus will have to deliver a 650m-euro slice of cost savings under the updated Power8 Plus plan. A further 300m euros will be generated by moving production to lower cost non-eurozone countries, which Mr Gallois hinted could include India, China, Russia and Mexico. Under the original Power8 plan the firm had hoped to save 5bn euros between 2007 and 2010 by slashing 10,000 jobs and selling plants after delays to its A380 superjumbo drove the planemaker into a loss last year.
In a statement Airbus chief Tom Enders added that further measures were needed to improve the firm's cost base, efficiency and competitiveness. "By pushing forward with internationalisation we secure growth, we take advantage of lower cost structures, we access talent on a worldwide basis and, simultaneously, support employment and core competences in Europe," he added. Mr Enders also repeated Mr Gallois' vow that there would be no further job losses in France or Germany after huge job cuts announced last year.
http://news.bbc.co.uk/2/hi/business/7606387.stm
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Airbus to offer heavier A330 against delayed 787
Airbus is making a higher-gross weight version of the A330-200 available in the first half of 2010 in hopes of capturing new market share caused by Boeing 787 delays.
Derek Davies, Airbus' investor marketing director, told the US Valuation Conference hosted by ATI affiliate Commercial Aviation Online that the modification will increase maximum takeoff weight (MTOW) for the passenger airliner by 5t. The top rating will increase from 233t to 238t.
Airbus expects the higher takeoff weight limit will improve the A330-200's comparison with the 787. Davies's presentation included a chart showing how the 238t version of the A330-200 compares against the "initial deliveries" of the 787. Afterward, Davies defined the term "initial deliveries" as the first 20 787s that complete final assembly. The 238t version of the A330-200 would have a range of 6,840nm, Davies said. By contrast, Davies added, the range for the 219.5t 787-8 would be limited to 6,720nm.
That number sharply contrasts with Boeing's publicly listed notional range for the 787-8, which spreads from 7,650nm to 8,000nm. Asked about the discrepancy, Davies answered that Airbus has updated their analysis of the 787's performance specifications based on market intelligence. Airbus now expects the first 20 787s to have a 2% higher fuel burn and "tons" of extra operating empty weight added to the baseline specification.
Boeing officials were not available at the CAO conference and did not immediately reply to a request for comment.
http://www.flightglobal.com/article...o-offer-heavier-a330-against-delayed-787.html
Louis Gallois, head of Airbus parent EADS, said the firm would expand production outside the eurozone area -including opening a plant in Tunisia. Airbus set out the plans in talks with its unions, while Mr Gallois made his comments in an interview with Le Monde.
The weak dollar has forced EADS to expand its original savings plan. The original plan, unveiled in 2007 was based on the euro being worth $1.35; after rising as high as $1.60 in July, it is now worth $1.41. The latest Airbus plans are based on an exchange rate of $1.45.
Franco-German EADS is vulnerable to the weakness of the US currency because most of its products are paid for in dollars while most of its expenses are paid in euros. According to EADS, every one cent movement in the dollar means a difference of $100m to its operating income.
In July, EADS announced it would ask all of its units to play their part in shouldering the burden of the weak dollar. Airbus will have to deliver a 650m-euro slice of cost savings under the updated Power8 Plus plan. A further 300m euros will be generated by moving production to lower cost non-eurozone countries, which Mr Gallois hinted could include India, China, Russia and Mexico. Under the original Power8 plan the firm had hoped to save 5bn euros between 2007 and 2010 by slashing 10,000 jobs and selling plants after delays to its A380 superjumbo drove the planemaker into a loss last year.
In a statement Airbus chief Tom Enders added that further measures were needed to improve the firm's cost base, efficiency and competitiveness. "By pushing forward with internationalisation we secure growth, we take advantage of lower cost structures, we access talent on a worldwide basis and, simultaneously, support employment and core competences in Europe," he added. Mr Enders also repeated Mr Gallois' vow that there would be no further job losses in France or Germany after huge job cuts announced last year.
http://news.bbc.co.uk/2/hi/business/7606387.stm
__________________________________________________
Airbus to offer heavier A330 against delayed 787
Airbus is making a higher-gross weight version of the A330-200 available in the first half of 2010 in hopes of capturing new market share caused by Boeing 787 delays.
Derek Davies, Airbus' investor marketing director, told the US Valuation Conference hosted by ATI affiliate Commercial Aviation Online that the modification will increase maximum takeoff weight (MTOW) for the passenger airliner by 5t. The top rating will increase from 233t to 238t.
Airbus expects the higher takeoff weight limit will improve the A330-200's comparison with the 787. Davies's presentation included a chart showing how the 238t version of the A330-200 compares against the "initial deliveries" of the 787. Afterward, Davies defined the term "initial deliveries" as the first 20 787s that complete final assembly. The 238t version of the A330-200 would have a range of 6,840nm, Davies said. By contrast, Davies added, the range for the 219.5t 787-8 would be limited to 6,720nm.
That number sharply contrasts with Boeing's publicly listed notional range for the 787-8, which spreads from 7,650nm to 8,000nm. Asked about the discrepancy, Davies answered that Airbus has updated their analysis of the 787's performance specifications based on market intelligence. Airbus now expects the first 20 787s to have a 2% higher fuel burn and "tons" of extra operating empty weight added to the baseline specification.
Boeing officials were not available at the CAO conference and did not immediately reply to a request for comment.
http://www.flightglobal.com/article...o-offer-heavier-a330-against-delayed-787.html
