Floyd Norris: Time to Kill the A-380?

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http://norris.blogs.nytimes.com/?p=3D80

November 7, 2006,  2:57 pm =

Time to Kill the A-380?
Question for the day:
Would Airbus be better off if it just dropped the A-380 program, or =

if it kept trying to build what is likely to be an overpriced white =

elephant?
The best bet may be to keep stalling and finding new problems to =

delay the program, while doing everything possible to get moving on =

the A-350 that will compete with Boeing=92s 787 Dreamliner. That way, =

Airbus can hope more airlines will follow FedEx in canceling orders, =

a decision that would minimize damages Airbus will owe airlines that =

have orders in.
Instead, I assume that Airbus will eventually get the plane built, =

and with all the wiring crammed in. (An inability to get the wiring =

right has been the excuse so far.) Then the market reaction will =

arrive.
Let us briefly examine the virtues (or lack of same) of this plane, =

as seen by various constituencies.
Airports: Hate having to expand and reinforce runways and build new =

facilities for a plane that plans to load and unload from two levels. =

Would like being able to move more people with fewer flights.
Airlines: Some airlines, notably in the Mideast, see a chance to =

become worldwide hub-and-spoke operations, flying A-380=92s between =

continents and thus serving the whole world even though there is not =

that much business to their country. Others see an opportunity to =

cram in unprecendented numbers of passengers while not having to use =

up precious landing slots at busy airports. For cargo carriers like =

FedEx, the plane could be useful on high volume routes.
Passengers: I think many will hate it. How would you like to line up =

at customs having just gotten off the back of the second or third A-
380 to arrive? Would passport control take longer than the flight?
But the real killer will be that Boeing=92s 777 can fly almost anywhere =
=

in the world non-stop. An airline offering service direct on that =

plane will have a huge advantage over one offering connecting service =

on the A-380. My bet is that airlines will find the hub-and-spoke =

plan does not work well, and Airbus will find it very hard to sell =

more planes, while early customers, having found their business =

strategies did not work, are trying to unload used planes.
In the long run, passengers will get what they want.
6 comments so far...
1.November 7th,
2006
9:23 pm totally agreed with writer. A380 is indeed a shows project =

for the EU. What is the breakpoint to sell the plane? Bet no other =

customers than those whom have booked the initial launch.
Bet the final price will not even pay off the R+D to this project. =

Project was a saga in this modern era. Now they=92re trying recoop on =

the A350WBX another plane in the =91air=92 as this one sits on the groun=
d =

with =91wiring=92 hiccups. what hiccups =85is on the books for customers=
 to =

know till they operates.
Better to fly with those planes that works then works on the planes =

that sits. =


=97 Posted by desmond chiang
2.November 8th,
2006
1:22 am With the cost of travel so high wonder where they=92ll find =

enough customers? The ripoff attitude of today=92s travel industry has =

made the experience tense and unpleasant.

It=92s the penny anteness of it all which so irritating. For example, =

the few bucks for the room safe you don=92t use. Unpleasant just having =
=

to ask get it removed because of the risk they won=92t leaving the =

customer embarrassed and irritated. =


=97 Posted by MARK KLEIN, M.D.
3.November 8th,
2006
3:01 pm Yes, I think A380 is not going to make it. It seems to be =

poorly designed and meant for non-existent market. =


It takes a lot of money and long time to develop flying machines. We =

know that oil is becoming more and more expensive. So, we should =

start designing more economical flying machines. =


I claim that Airbus should kill A380 and use the money instead on =

developing modern Zeppelins. The future is going to have fewer jets =

and huge number of Zeppelins. =


=97 Posted by Matti Kinnunen
4.November 8th,
2006
3:09 pm While I am an enormous supporter of Boeing and their market =

research, which said anything larger than the 747 was just not needed =

in our world at this time, it would be insane for Airbus to try and =

end their A380 program now that they have invested billions. It would =

be economic suicide. I think it is also wise to keep in mind that the =

first generation 747-100 was also two years late, and was the =

standard for international travel for more than 2 decades. Innovation =

has a price, and I support airlines flying where they want and how =

they want. Customers always get what they want - welcome to =

capitalism.

The A350 XWB - I don=92t think Airbus has a choice. They have to go =

forward with it, but they are so far behind that it will be a long =

road to capture whatever part of the market is available. Airlines =

WILL buy it though because they value competition. =


=97 Posted by Andrew
5.November 9th,
2006
3:20 am Why don=92t we let the market decide what airplanes the =

airlines will buy.
Don=92t forget the A380 is equivalent to B747 when it first fly in =

1969, Airbus has a learning curve in terms of producing the airplanes.
My dad is a pilot he flew both Airbus planes and Boeing planes =

before, in terms of flying the airplanes Airbus makes it easy for =

pilot to fly their planes compare to Boeing, they are way ahead in =

terms of automating the pilot work load. =


=97 Posted by Donny Agustiady
6.November 9th,
2006
10:03 am In a way, Airbus has a lot in common with AirBush =

administration! =


=97 Posted by Dennis Ferguson


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