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May 20, 2007



I just thought I would link this Article about the challenges ahead for Airbus

Considering the difficult situation Airbus is in and China's plans to start building large commercial aircraft , the EU might, if successful at limiting the growth of the airline passenger market by 40%, bankrupt Airbus.
That is of course, if Airbus does not get new subsidises


Far be it from me to quibble with the Great Aboulafia, and certainly there is no reason to doubt the severity of Airbus's current situation, but let's remember these things tend to come in cycles. It was only a few years ago that Airbus was up and Boeing was down. In fact, Boeing might be in the very same situation today if they had launched the Sonic Cruiser before 9/11 struck in 2001. Typically, either Airbus or Boeing has a good streak and becomes too cocky and makes a false move. That has certainly been the case with Airbus since 2004. Is it Boeing's turn? Time will tell, but it's a very fine line for any company to walk in this business, I believe.

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