Is AIRBUS crazy?`

misterno · Posted: Fri Jun 27, 2008 7:22 am Post subject: Is AIRBUS crazy?`

They are planning to increase their aircraft production in the coming years. With jet fuel prices all time high and peak oil around the corner, why would any aircraft manufacturer want to increase production. You have to be crazy to do that.

I understand the demand from India and China, and the new demand for fuel efficient aircraft but when the US and other developed nations's airline industry shrink, there will be thousands and thousands of old aircraft unused and parked.

What are they thinking? Is there something that we do not know.

http://allafrica.com/stories/200806270073.html

sciencegirl · Heavy Crude Joined: Jul 17, 2006 Posts: 296

Yes, they are crazy. Give it 1 more year and they will be singing another tune, if they are not bankrupt. Shock

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Niagara · Posted: Fri Jun 27, 2008 7:29 am Post subject: Re: Is AIRBUS crazy?`

Think about it from their perspective. They're in the aircraft business and know they're on borrowed time.

Increasing production makes perfect sense, the sooner the better. One "last hurrah" before air travel goes belly up.

Kingcoal · Posted: Fri Jun 27, 2008 7:33 am Post subject: Re: Is AIRBUS crazy?`

AirBus is and always has been a jobs program. They are just doing their part.
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hope_full · Heavy Crude Joined: May 27, 2008 Posts: 173

Yes, they are crazy. There's no figuring out or understanding insane behaviors because, well, they're INSANE.

misterno · Posted: Fri Jun 27, 2008 8:01 am Post subject: Re: Is AIRBUS crazy?`

What a world. Crazy people managing billions of dollars. This reminds me Cramer. Smile

Windmills · Posted: Fri Jun 27, 2008 8:13 am Post subject: Re: Is AIRBUS crazy?`

And I was lead to believe that people are rich and in control of lots of money because they're smart and industrious...

Oil_be_alroit · Tar Sands Joined: Jun 18, 2008 Posts: 22

mobil1 · Posted: Fri Jun 27, 2008 8:26 am Post subject: Re: Is AIRBUS crazy?`

Does Airbus make fuel efficient planes ?

Bombardier orders are doing well because they are more fuel efficient than the bigger planes.

Ferretlover · Posted: Fri Jun 27, 2008 8:30 am Post subject: Re: Is AIRBUS crazy?`

Oh, gee. Maybe we don't have the whole picture. Maybe they have plans for all those aircraft after their original purpose (flying) can no longer be met.
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dunewalker · Posted: Fri Jun 27, 2008 8:31 am Post subject: Re: Is AIRBUS crazy?`

Just remember that on Easter Island, the biggest statues were the ones made last and never completed.

The highest rpms on a mower are in the seconds before it runs out of gas....
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jlw61 · Posted: Fri Jun 27, 2008 8:56 am Post subject: Re: Is AIRBUS crazy?`

If they have orders, they are crazy not to build the planes.
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misterno · Posted: Fri Jun 27, 2008 10:00 am Post subject: Re: Is AIRBUS crazy?`

Those orders can be cancelled anytime by bankrupt airlines.

We call that organic cancellation Smile

VMarcHart · Posted: Fri Jun 27, 2008 10:02 am Post subject: Re: Is AIRBUS crazy?`

Not necessarilty crazy, although that's a bold move. If I were in their shoes, I'd be targeting the rich like in the early days of air travel, that's all.

I'm not rich, but I could pay a certain premium to fly more comfortably, faster, safer, etc, I would gladly pay for it.

syrac818 · Heavy Crude Joined: Jun 01, 2005 Posts: 113

Just throwing something out here...

A company like AIRBUS has full departments, likely with 100+ people, dedicated to looking at future revenue, costs, demand, etc... And I would bet that many in those departments have education, experience and qualifications far beyond any single poster here.

I'm sure they're not ignorant to the reality of high oil prices.