January 18, 2005

Super Dumbo?

Commenting on the launch of the new super jumbo:

“ “Chirac said the debut of the A380 "is for all of us a moment of emotion and pride" and "a great success for Europe."

German Chancellor Gerhard Schroeder struck a similar chord, calling the A380 a "triumph of European science and European engineering."


words that should strike fear into any shareholders – no mention of a triumpj of Euroepan business planning.

My view is that as long as Boeing is still capable of making 747’s it will prevent Airbus charging prices high enough to earn super normal profits. The other concern has to be baggage:-

“London's Heathrow airport says it is spending over $800 million, providing everything from double-decker passenger ramps to enlarged baggage conveyors capable of processing 555 passengers on one flight.

Other airports are spending billions more on similar improvements, but there is concern that some may not be ready in time.”

And if they aren’t then serious network effects kick in – airlines may be able to transport passengers at a lower cost in the A380 but if you have to wait an hour for your baggage at the other end will it be worth it.

Posted by wardx107 at January 18, 2005 4:04 PM
Comments
Post a comment









Remember personal info?