Thread: EADS suffers a setback as Boeing moves ahead in Chinese market

EADS SUFFERS SETBACKS IN TWO AIR ACCIDENTS, DELAYS TO A380 DELIVERY

Received Monday, 8 August 2005 13:04:00 GMT

PARIS, Aug 8 (AFP) - The European Aeronautic Defence and Space Company has suffered a string of setbacks lately -- two accidents involving aircraft from its subsidiaries Airbus and ATR and customer displeasure over delays in the delivery of the A380 -- at a time when rival Boeing is gaining ground in China.
The latest developments amount to an unwelcome turnaround at EADS, which in late July announced half-year net earnings of 816 million euros (1.01 billion dollars), more than doubling its performance in the same period of 2004.
On Saturday an ATR-42, built by EADS subsidiary ATR, crashed into the sea off Sicicly, killing 13 people. Three people are missing in the crash of the Tunisian-operated plane, from which 23 people escaped.
Italian press reports on Monday said the quality of the fuel provided to the craft may have caused the engines to give out and forced the plane to crash-land off the Sicilian coast.
Earlier in the week, on Tuesday, an Air France Airbus 340 slid off the runway after landing at Toronto's Pearson International Airport and burst into flames in a ravine, injuring 43 people aboard. It was the first mishap involving the four-engine A340 since its launch 14 years ago. But an initial investigation has not found fault with the aircraft.
While both ATR and Airbus, in which EADS has respective stakes of 50 percent and 80 percent, have not been implicated in the accidents, the crashes nonetheless threaten to tarnish their image at the height of the tourist season.
But far more worrisome for EADS are delays in the planned delivery of the Airbus A380, which will be the world's largest civilian airliner.
The head of Singapore Airlines, Chew Choon Seng, said in an interview to appear this week, that he was furious with Airbus over the delay and could sue EADS for damages.
He told the German weekly Focus that the first double-decker planes would not be delivered to SIA, a launch customer for the aircraft, until November next year, eight months later than originally promised.
"Airbus took some time to acknowledge the delay in the timetable for the A380's entry into service," Chew said, adding: "I would have expected more sincerity."
He said the delay "greatly upsets our forecasts with regard to capacity," while ageing Boeing 747-400 jumbo jets would have to be kept flying for longer.
In addition the programme for training flight crew and engineers would be disrupted.
Chew said a clause in the sale contract provided for SIA to seek damages for late delivery.
SIA has ordered 10 A380s, with an option for another 15, to operate initially on flights from Singapore to London and Sydney.
The interview had an impact on Monday on EADS shares, which at mid-day were down 0.25 percent at 27.67 euros on a generally stronger Paris market.
Boeing, Airbus' US competitor, has meanwhile moved ahead in the lucrative Chinese market, announcing firm orders from four Chinese carriers worth a little more than five billion dollars for 42 of its 787 Dreamliners.
The Dreamliner is to compete head to head with the future Airbus 350.

www.ttc.org . . .

Still EADS has a sky rocketing market share and increase in profits...


And I think one has to be pretty blind not to see why China orders Boeing airplanes...
China is increasing ecconomic ties with the United States... the more ties the less aggressive the US is going to react towards China.