FedEx Sends Back Airbus Order

More bad news for Airbus and its jumbo problem, the A380. Not only did FedEx become the first company to drop its order for the super jumbo, it also announced it would buy 15 Boeing 777 freighters instead. I wouldn't be surprised if other potential customers followed suit. Lufthansa, ja?

If Emirates drops even a part of its biggest order for 43 planes, then I'm not sure if Airbus would ever be able to recover. Keep an eye on this one. The airline's people will be crawling all over Airbus's facility in Toulouse to see if this thing is flying anywhere soon.

Airbus - Expect Goodies not Profits

The bad news at Airbus just keeps coming. Now its new chief executive has resigned only three months on the job. Looks like Mr. Streiff just could not handle the politicians and technocrats who have different goals than ridding the company of stifling bureaucrats. I particularly enjoyed this quote in the Wall Street Journal story by Dan Michaels:

The structure of Airbus -- created in 1970 by technocrats in France, Germany, Britain and Spain -- is rooted in its origins as a consortium and has long proved more effective at spreading jobs and tapping subsidies than generating profits.

Airbus - Why Not Just Kill Jumbo?

Yet another delay for the superjumbo, super-fiasco Airbus A380. EADS has informed all its potential clients that it would take at least additional 10 months to roll out the first jets to the airlines. That's on top of the earlier delays. Emirates airlines, which placed the biggest order for the two-decker, was originally supposed to receive the first A380 earlier this year. Here's what the airline's CEO had to say:

"We have a further ten-month delay ... The position is very serious for Emirates and we are now reviewing all options."

If Emirates cancels its order for 43 planes, the A380 could be pretty much doomed. Lufthansa, the second largest customer, has ordered only 15. If it wasn't for European egos and government support, this project would have already been killed by now. Why not just let it out of its misery.

This growing mess only supports my thesis that the A380 is destined to be Europe's Spruce Goose, Howard Hughes' gigantic wooden plane that only flew once, a few feet above water. Airbus' flying coffin may not be wooden, but it sure looks closer to its funeral.