The bad news just doesn't stop. ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2002/01/23/i= nternational1437EST0686.DTL ---------------------------------------------------------------------- Wednesday, January 23, 2002 (AP) Airbus begins production of A380 jumbo jet (01-23) 11:37 PST PARIS (AP) -- Airbus said it began production Wednesday of the A380, its 555-seat jumbo jet that is scheduled to enter service in 2006 as the world's largest passenger jet. In a statement, Airbus said the traditional "first metal cut" for the construction of the jetliner took place on schedule at its factory in the western French city of Nantes. Despite the dramatic downturn in the airline industry since Sept. 11 and plans by Airbus to cut its work force by 20 percent, the company says the A380 will soar from the drawing board and into the sky on schedule in four years. Aimed at dislodging Boeing's venerable 747 as the dominant jumbo jet, the A380 is a prestige project in the European airplane maker's long-running battle with its Chicago-based competitor. Boeing on Wednesday, meanwhile, said that its fourth-quarter profits had tumbled 79 percent, buffeted by the downturn in aviation since Sept. 11. Boeing managed to boost revenues by 7 percent over the previous year but projected revenue would fall for both 2002 and 2003 as the industry's decline takes full effect. "Looking ahead, we are entering a challenging period," said Boeing chairman and CEO Phil Condit. Parts for Airbus' A380 are to be manufactured at various Airbus sites around Europe and will be transported by land and sea to Airbus' headquarters in the southern city of Toulouse in October 2003, the statement said. Airbus, a European consortium, says the $250 million plane with two wide-body decks will make its first flight in 2004 and enter service in 2006. The company also is sticking with its prediction of steady growth in passenger traffic and a solid market for big airplanes toward 2010 and beyond. So far, Airbus has 97 firm orders and commitments for the A380. Already signed up as buyers are Air France, leasing company International Lease Finance Corp., Quantas, Singapore Airlines, Virgin, Emirates Airlines, Qatar Airlines, and Federal Express. =20 ---------------------------------------------------------------------- Copyright 2002 AP