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The Modern Woes of Airbus

Hopes were high last year when Airbus unloaded its impressive, massive A380 passenger jet in France. Then in stiff competition with U.S. plane manufacturer Boeing as that company unveiled its own new aircraft designs ? specifically, the 787 ? and international airlines began making purchases, it now seems as if the company is on a downward spiral. The signs are mostly composed of recent production delays of the A380, along with reports that Airbus executives knew about the delays before they went public and cashed out stock options before the price of shares fell.

Meanwhile, the Boeing 787 has seen 350 orders already placed, compared to 100 for even earlier Airbus models than the A380. Those 100 orders for the A350, and 12 for the A340-600, pale in comparison to the 155 placed for the precursor to the Boeing 787, the huge 777. Both Boeing and Airbus have been involved in legal wrangling over the past few years.

Accusations of government subsidies for both companies by both the United States for Boeing and European Union for Airbus causing a flurry of barbs to be traded between executives of both the companies and countries involved. According to some estimates, the wide-body plane market could reach as much as $1 trillion dollars over the next twenty years or so. The A380 program of Airbus is costing the consortium $13 billion, while delays are reportedly to cost the company upwards of $2.6 billion by 2010.