Re: Airbus on a roll

Date:         08 Dec 96 04:12:32 
From:         tschell@s.psych.uiuc.edu (Terry Schell)
Organization: University of Illinois at Urbana
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charlie1@easynet.co.uk (Charlie Whitaker) writes:

>In article <airliners.1996.2665@ohare.Chicago.COM>,
>"t. smith" <trsmith@prado.com> wrote:

>>As for the 45% list price, Airbus basically wants to sell America
>>airliners paid for by European taxpayers

>Seems a little pejorative to me. Care to substantiate this?

Charlie-
You snipped away enough of the original post... including part of the
sentence you were referencing... that it sounds *much* more pejorative
and unsubstantiated than it was.  Given the current market position of
Airbus, the nature of their workforce, and the level of governmental
involvment/support, it would be a very smart business move to sell
enough planes to maintain production... even if that means selling
them at a price that will never allow Airbus to recover the cost of
design, testing and production.

To be a viable business in the future they must break into the
US airlines' market more fully and they must maintain production.  To
date this has been accomplished at a loss which the European countries
have covered.  Perhaps the original statment would be more palatable
stated as " Airbus wants to sell airplanes to the American market even
if it means that Airbus will lose money for a while; the company
can afford to do this because of the generous financial support of the
European countries."

Sincerely,
Terry