November 4, 2006

HEY, HERE'S AN IDEA--LET'S THROW MONEY AT THE PROBLEM!

Airbus reportedly intending to up spending on new A350 (Bloomberg News, 11/04/06)

Airbus plans to increase spending on a proposed long-range jet made of lightweight carbon by 20 percent to $12 billion, said two people with direct knowledge of the proposal.

A new design for the A350 plane will be presented to Airbus parent company European Aeronautic, Defence & Space on Tuesday, said the sources, who declined to be identified before an announcement.

The A350 is Airbus' sixth attempt to create a competitor for Boeing's 787, which has won 402 orders.

"They really don't have a choice about doing it, if they want to be competitive with Boeing over the long term," said Phil Finnegan, an analyst at Teal Group, a consulting company in Fairfax, Va.

Posted by Orrin Judd at November 4, 2006 8:24 AM
Comments

Reminds me of Chrysler in the late 1970s, trying to stave off backrupcy due to foreign competition and their own shoddily-built vehicles, while seeking a federal bailout as Joe Garigiola was telling TV viewers "Buy A Car! Get a Check!"

Posted by: John at November 4, 2006 8:40 AM
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