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Politics : Politics for Pros- moderated

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To: Elsewhere who wrote (117568)6/1/2005 5:15:53 PM
From: kech  Read Replies (1) of 793999
 
The standard A380 version will offer 555 seats. In January $40 billion of orders had already been booked.

Airbus announced a 6 month delay today. They have 144 orders for A380 to date. Keep in mind that just to break even on their development and capital costs they have to get 44-80 sales per year for the next 20 years. The 44 is if they can get the same margin that Boeing has had on its monopoly with the 747 for the last 30 years. If things get more competitive, and they will since A380 has more direct competition than the 747 did, they will need to sell more like 80 per year. Interestingly enough the maximum and most optimistic size of the market as projected by Airbus is about 80. Boeing thinks the market is a lot less.
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