Friday, May 7, 2010
The A-380 - Stay in Production or cancel?
Analysis by: Gerard Buhrer
Canceling the A 380 will invoke more costs not less. Even if the various Gov’ts would agree with layoffs, the severance pay and other benefits would outweigh the savings. Also most of the development costs are “sunk” they cannot be recovered at all. Future production costs must be reflected in the actual aircraft selling price. Also Airbus would suffer greatly in prestige should their “Queen” disappear, plus many customers would leave Airbus and go to Boeing.
glgroup.com/News/The-A-380-- … 48240.html
at Friday, May 07, 2010