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Old May 4th, 2005, 06:16 AM   #41
Cheese Mmmmmmmmmmmm
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Airplane Makers' Jabs Are Nothing New

By Roger Yu, USA Today

Take the high road. That's the mantra of the world's elite corporations when discussing competitors.

Not so for airplane makers Boeing and Airbus, as was evident last week when each belittled the other's big achievement. Their public exchanges over the years don't rise to the level of the bold trash talk of the NBA. But they do show that admiration for each other is in check.

In a competitive coup, Chicago-based Boeing announced last week two multibillion-dollar contracts for its 777 and its new 787 Dreamliner, the fuel-efficient aircraft on which it's pinning hope for the future.

"When you are No. 2, you get tired of losing, so you start doing things to fight back," said Henri Courpron, CEO of Airbus' North American subsidiary, to The Wall Street Journal. "But is it sustainable?"

Europe's Airbus got favorable notice on Wednesday when its A380, the world's largest passenger aircraft, successfully completed its maiden flight.

"We always thought it would fly because that's what airplanes do," deadpanned Boeing CEO James Bell.

The tit-for-tat was just the latest example in a long-running feud between the rivals.

For years, Boeing was dominant among commercial airplane manufacturers. That changed two years ago when Airbus overtook Boeing in the number of planes delivered annually. Boeing, now the underdog, has had to become nimbler and more responsive to competitive threats, says Richard Aboulafia, an aviation analyst at The Teal Group.

Boeing sees its 787 Dreamliner — a long-range, fuel-efficient plane that carries about 250 passengers — as the future of commercial aviation. Airbus is planning a direct competitor in its A350 but is also counting heavily that its airline customers will embrace its much larger A380, a superjumbo that will carry about 550 passengers.

Aboulafia says the tone of the Airbus commentary on its rival is changing, driven by a spate of five recent contracts won by Boeing. "It's quite another game," he says. "When you lose five contests in a row to someone, that's a bloody nose."

Nationalism is another subtext of the rivalry. Airbus is based in Toulouse, France, and owned by a consortium of European governments. Boeing alleges unfair subsidies. Airbus counters that Boeing, too, benefits from government subsidies and from U.S. government military contracts.

Some experts aren't sure if such aggressive finger-pointing is helpful. The best companies focus on areas of internal improvement and refrain from preening, says Ben Dattner, an organizational expert at New York University.

"Denigrating outside entities can be a sign that an organization is not self-assured enough to confront the reality in a more objective way," he says.

Still, the rhetorical competition isn't without humor or occasional hints of mutual respect.

"Bien joué. Well done!" Randy Baseler, Boeing's marketing chief for the commercial airplanes unit, said in his Web log entry last week. "Today is A380's day."
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Old May 6th, 2005, 05:34 AM   #42
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Qatar Airways Is Set For ‘Major Aircraft Deal’

Published: Thursday, 5 May, 2005, 12:14 PM Doha Time

By Pratap John

DUBAI:
Qatar Airways will announce a major order for new aircraft at the Paris Airshow next month.

“We are talking to both Boeing and Airbus and hope to make an announcement in June,” Qatar Airways chief executive officer Akbar al-Baker told Gulf Times here yesterday on the sidelines of the Arabian Travel Market (ATM).

The airline eyes both Airbus A350 and Boeing 787, he said.
Asked how many aircraft Qatar Airways would order, al-Baker said that would be announced only during the next month’s Paris Airshow. However, he indicated that it would be a “huge order” for an airline of Qatar Airways’ size.

“Anyway, we plan to have some 120 aircraft by 2012 or 2014. At that time we will be among the major airlines in the world,” he said.
The impending aircraft order followed a major booking made by Qatar Airways in 2003 for some 32 Airbus aircraft valued at $5bn. Currently, the airline operates some 40, all-Airbus aircraft, all Airbus-made.

Qatar Airways is well on course to offer its shares to the public shortly, al-Baker has said. He said the airline was now in a better shape to go public in the wake of three consecutive years of profit in 2002-2003, 2003-2004 and 2004-2005. However, the profit was generated by the Qatar Airways Group as a whole and not the airline alone. “As an airline we are still in the red. But it is basically due to our commitments as a fast expanding and modern airline,” he said.

Al-Baker said high oil prices eroded Qatar Airways’ profit considerably like other airlines.

“Last year we spent $68mn over our budgeted amount on fuel bill. Nearly 30% of our total bill is now accounted for by fuel charges alone. In the next fiscal we expect the bill to go $100mn over our budgeted amount,” al-Baker said.

He denied reports that Qatar Airways was being given fuel on subsidised rates by the Government of Qatar. “It is absolutely false. We get fuel at the rates other airlines pay. Our international creditors including banks will vouch for this.”

Last edited by Cheese Mmmmmmmmmmmm; May 8th, 2005 at 02:43 AM.
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Old May 8th, 2005, 02:41 AM   #43
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Airbus Jet Set To Take Off With Emirates

Dominic O’Connell - The Sunday Times [www.timesonline.co.uk]

Emirates, the fast-growing Gulf airline, is set to launch Airbus’s new A350 with an order for up to 50 aircraft to be announced at the Paris Air Show next month.

The Emirates deal, worth up to $6 billion (£3.2 billion) at list prices, will be Airbus’s first big contract for the new aircraft
, intended to compete head-on with Boeing’s latest plane, the 787. Both aircraft are mid-sized jets designed to carry 250 people.

Boeing has had a recent run of sales success with the 787. Last week Northwest Airlines, Airbus’s biggest customer, chose the 787 over the A350, buying 18 aircraft with options on 50 more. The deal takes Boeing’s order book for the 787 to 255 aircraft.

Airbus is pressing Britain to agree to provide launch aid to build the A350. The money — thought to be about £300m — will be used to fund the development of all-new composite wings for the aircraft to be made at Airbus UK’s Broughton factory in North Wales.

The A350 launch will revive Europe’s row with America over support for the commercial aircraft industry, which threatens to become the most serious trade dispute between the two blocs.

The A350 will be based on Airbus’s A330. It will have new wings and use efficient engines originally designed for Boeing’s 787.
---------------------------------------------------------------------------------

Looks like the A350 just busted on to the market!
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Old May 8th, 2005, 07:00 AM   #44
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Old May 8th, 2005, 09:25 AM   #45
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cool, so airbus won over boeing, i wonder wht was the deciding factor that made emirates' decision to purchase the a-350 over the b-787
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Old May 8th, 2005, 09:25 AM   #46
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cool, so airbus won over boeing, i wonder wht was the deciding factor that made emirates' decision to purchase the a-350 over the b-787
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Old May 8th, 2005, 04:45 PM   #47
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about how much airplane's is the deal??
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Old May 8th, 2005, 09:51 PM   #48
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^ Looks like 50.
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Old May 9th, 2005, 12:26 AM   #49
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i really like that airplane
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Old May 9th, 2005, 12:41 AM   #50
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I love how Airbus can 'jack the better engines from RR & EA and build this plane. Airbus is only going to have to spend around $3 Billion for development of this plane, whereas Boeing has poured in almost as much as the A380 project at $12 Billion.

It's a good thing for Boeing they've picked up a couple of huge orders from AI and AC lately... in a sense they HAD to, they have a hell of a deficit to make up with this.

The A350 however is going to be close to the same efficiency and pay off its development and then some with a single order from Emirates. That's good business on Airbus' part.
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Old May 9th, 2005, 09:55 AM   #51
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how is it with the emirates deal of airbus, any news???
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Old May 9th, 2005, 11:52 AM   #52
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Emirates says no decision yet on Airbus A350
05.08.2005, 03:58 PM

DUBAI (AFX) - Dubai-based airline Emirates has denied a press report that it had decided to make a 6 bln usd (4.6 bln eur) order for 50 Airbus A350s.

'No decision has been made,' said spokesman John Tome.

Earlier, the Sunday Times newspaper reported that the fast-growing Gulf airline was to announce the order next month.

Apart from the A350, Emirates is also still looking at Boeing's 787 Dreamliner, 777-300ER and 777-200LR 'to see if we would need any of them, and if so, how many', Tome said.

Emirates has already received three of an order for 20 of the 777-300ER, but has not excluded additional orders, the spokesman said.

'We don't have anything to announce now and we don't know when we will have anything to announce,' Tome said.
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Old May 9th, 2005, 07:47 PM   #53
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Ahhhhh very good, thank you for that article SKYLINEPIGEON!
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Old May 10th, 2005, 06:02 AM   #54
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Aww pare Skyline beated me to it. Still at least it's posted nevertheless!
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Old May 10th, 2005, 08:45 AM   #55
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I guess we'll have to wait till the airshow to figure out the Emirates deal.
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Old May 10th, 2005, 07:35 PM   #56
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... oops duplicate post. Sorry!
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Old May 16th, 2005, 06:47 AM   #57
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Report: U.S. Airways, America West Near Loan

The Associated Press
Sunday, May 15, 2005; 9:24 PM


NEW YORK --
As they discuss a possible merger, US Airways and America West are near a deal for a $250 million loan from Airbus as part of a 20-jet order for the aircraft maker's new A350 model, according to a newspaper report.

The loan would be part of a financing package the carriers are working to arrange with private investors for as much as $400 million, including $100 million to $150 million from ACE Aviation Holdings Inc., the parent of Air Canada, The Wall Street Journal reported Sunday on its Web site, citing people close to the situation.

Struggling Airlines:

The airline industry, facing rising fuel prices, sharp competition, an inflexible market for ticket prices and the lingering fear of terrorism, is in the midst of its most critical period in decades.

Bankrupt US Airways Group Inc. and America West Holdings Corp. acknowledged last month that they are in merger talks. Reports have said a deal could be announced as soon as this week.

The companies want to raise $500 million in new equity, with $375 million to $400 million from investment and the rest from proceeds from a rights offering that would be underwritten by a major financial institution, the newspaper's sources said. The financing includes $125 million from Air Wisconsin Airlines Corp., which was announced in February.

A spokesman for America West, based in Tempe, Ariz., declined to comment Sunday on the report.

"We'll be happy to go into details when we're able to confirm that we're either planning to move forward or if something has fallen through. Until that resolution happens, we're not able to officially comment," America West spokesman Carlo Bertolini said.

US Airways did not immediately return a call seeking comment.

A spokeswoman for Montreal-based Air Canada, which left bankruptcy court protection itself last year, told the newspaper the company doesn't comment on rumors.

Wexford Capital LLC, a hedge fund that had agreed two months ago to invest $125 million when US Airways leaves bankruptcy, isn't expected to complete that investment because other investors have offered more attractive terms, the newspaper said, citing a person familiar with the matter. But Wexford could still invest a smaller amount.

Boston-based hedge fund PAR Capital Management Inc. and a second hedge fund that also has invested in America West together are in advanced negotiations to provide $125 million of equity, the newspaper reported.

Besides a $250 million loan, Airbus would renegotiate prices and delivery dates for 63 planes the two airlines have on firm order with it, the Journal reported.

The merged airline also may agree to buy about 20 A350 jets for delivery soon after the new airplane starts flying in 2010-2011, marking the first orders for the jet from a North American customer, the newspaper said. Airbus, owned by European Aeronautic Defence & Space Co. and Britain's BAE Systems PLC, is hunting launch orders for 50 airplanes by next month.

Airbus conceived the A350 in response to Boeing Co.'s new 787, which has attracted airline demand because of its lower operating costs. The 787, under development, is expected to begin commercial service in 2008.

US Airways, based in Arlington, Va., has been in Chapter 11 bankruptcy protection since September 2004. It was the second such filing in two years for the nation's seventh-largest carrier.
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Old May 16th, 2005, 06:49 AM   #58
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^ Though this is significant that these are U.S. based airliners that are possibly going to order the A350, note that both are current operators of the A320 series already.
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Old May 20th, 2005, 07:47 AM   #59
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EU Says Launch Aid For Airbus A350 Would Be Legal Under WTO Rules

AFX News Limited
05.19.2005, 08:02 AM


BRUSSELS (AFX) -
The European Commission said launch aid for Airbus Industrie's A350 plane would be compatible with WTO rules.

Speaking after Boeing Co again threatened to take Airbus to the WTO if it requested government aid to launch the plane, commission spokeswoman Francoise Le Bail said the commission would not be surprised if the European aviation company had asked for such aid.

'In the view of the commission, the launch investment is legal under WTO rules,' Le Bail said.

She reiterated that the commission would prefer to resolve its dispute with the US over state aid through negotiation rather than 'counterproductive' WTO action.

'We are in contact with the Americans. We are still discussing, so everything is still possible,' she said.
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Old May 20th, 2005, 07:48 AM   #60
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Airbus Requests A350 Launch Aid From UK Govt

AFX News Limited
05.19.2005, 08:06 AM


PARIS (AFX) -
Airbus Industrie has lodged a request with the UK government for reimbursable launch aid for its A350 programme, and hopes to have a decision on the request by mid-June, a spokesman for the aircraft manufacturer said.

Airbus is also providing other European governments with information on the A350 project, ahead of official applications for similar launch aid, he said.

In London, the Department for Trade and Industry confirmed the application for aid and added it was submitted at the beginning of April.

'We received the launch and investment aid application and are considering it,' the DTI said in a statement. 'All matters around the application remain commercially confidential.'

The launch aid for the A350 project, which has not yet been formally approved by Airbus, is at the center of an EU/US dispute over state subsidies for their aeronautics industries.

Airbus is owned 80 pct by the European Aeronautic Space and Defence Co (EADS) and 20 pct by BAE Systems.
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