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May 13, 2008

The A380 and other VLA problems

Analysis of: The A380 Shadow Critical Project Appraisal | iagblog.podomatic.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Addison Schonland, Partner, Innovation Analysis GroupAddison Schonland 
Partner, Innovation Analysis Group
Implications: Airbus' A380 is an amazingairplane as anyone who seen it can testify. Its wings are awesome; the dimensions stop everyone in their tracks.  But can airlines get over the size issue and focus on economics?

Analysis: In this podcast three of the original four analysts review their findings, first published in 2002. While its true their original report was funded by Boeing, the analysts do not sound like pro-Boeing talking heads. In fact, they question the notion of VLAs (very large aircraft) in the current environment.

The take away from this is that Airbus may have taken a very big risk and, given the time to get the plane delivered and flying as well as the sharp drop in the US dollar, EADS may never recoup the launch investment for its EU sponsors/shareholders.

EADS and Airbus are going to have a tough time making the A400M fly on budget and the drain on resources will hamper the launch of the A350 -  the plane Airbus really needs to get right.


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