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Airbus' other planes, including the A320, are still selling well, and EADS's helicopter and other military divisions reported strong sales and earnings this year. Ulrich Horstmann, an aviation analyst at Bayerische Landesbank, reckons there's an 80% chance that Airbus will be able to bounce back. "But there is a danger it'll get sucked into a vicious circle of job cuts, sinking morale and political infighting," he says. As for Airbus as a model for industrial cooperation, James Foreman-Peck, a professor at Cardiff Business School who specializes in European industrial policy, says it remains valid...
...enterprise in which political considerations carry more weight than commercial ones, where horse-trading trumps industrial efficiency, and where the national interests of its partners are balanced so carefully that many operations are needlessly duplicated. "It's very hard for Airbus to free itself from political strangulation," says Ulrich Horstmann, aerospace analyst at Munich, Germany-based Bayerische Landesbank. Christian Streiff, who took over as Airbus chief executive in July, is now trying to wriggle out of that choke grip. Last week, the board of EADS, Airbus' parent, signed off on his sweeping restructuring plan to replace political bargaining with industrial...
...those bet-the-company ventures, so beloved by the airline industry, which either succeed spectacularly - as the Boeing 747 did - or risk sending the whole firm into a tailspin. Mechanically at least, the A380 works: Airbus has been conducting successful test flights for over a year. Horstmann, the Munich bank analyst, reckons there's an 80% chance that Airbus will be able to work through this crisis and bounce back in a couple of years. "But there is a danger it'll get sucked into a vicious circle of job cuts, sinking morale and political infighting," he worries. Already stretched...
...remains profitable, the company has only two types of aircraft (the 777 and the 737) that are selling well, and last month it said it would stop making its 717. "If Boeing doesn't make the 787 a success, it has no more trumps in its hand," says Ulrich Horstmann, an aerospace analyst with Bayerische Landesbank in Munich. Don't think Stonecipher isn't aware of that. He recently approved the firing of the head of Boeing's sales team. Stonecipher admits that his company has been overconfident in the past but says he sees the same trait among...
...engineering success - but so was the Concorde. The A380 could be a market disaster." John Leahy, Airbus' American-born top salesman, dismisses that prospect, saying airlines want both options - the A380 and the A350. No matter who's right, Boeing can't afford to make the wrong call. Ulrich Horstmann, an aerospace analyst for Bayerische Landesbank in Munich, says: "If Boeing doesn't make the 7E7 a success, it has no more trumps in its hand." Don't think Stonecipher isn't aware of that. He has overseen a revamping of Boeing's commercial airplane unit and recently approved...