Airbus

Qatar Airlines: Pleased With Airbus, Far Less So With Another

News Analysis: Airlines need their New Aircraft on or before their Contracted Delivery Dates (as it appears Qatar will be joyously receiving with its Airbus A350’s). They are tiring of hearing about Aircraft Delays from other Air Frames. It seems that some Air Frames “Promise the Moon” (especially in terms of estimated low fuel burn and projected on-time reliability).

The Benefits of the Technologies the Air Frames now promote, such as All Composite Construction, say next to NOTHING about Structural De-lamination due to Stress (or Cosmic and Solar Radiation at Cruise Elevations), Detonation like a ‘Shattered Egg’ (when the fuselage hits the airport runway as when landing-gear failure arises), nor Flammability of the Carbon/Carbon Composite Construction (from even little Lithium-Ion Batteries).

As the Administrations of Airlines commence to “Wise-Up” to the Games played by SOME Airframes, they will cease being “Freiers” who are easily influenced by the Chicanery offered by Air Frame Marketeers.

Any time a new Aircraft is YEARS LATE in its Delivery to Customers means that the Scope of Work Was Not Properly Estimated and Assets (Human and Financial) were not properly allocated (as also might be not properly estimated is the Aircraft’s Performance, Fuel Burn, and Dispatch Reliability)

Reality.

Reference: http://english.alarabiya.net/en/business/2014/02/12/Qatar-Airways-expects-to-receive-first-A350s-early.html

★ European Countries Debt Load Is Estimated At 134% Of Gross Domestic Product (GDP)

News Analysis: Increasing again in an overall “Soft Macro-Economy” are the Debt Loads of the various European Countries. Since the various Central Banking Organizations have varied “Threshold Limit Points” numerically, they are in disagreement of the increasing danger of a Recession.

Members of the European Community have decreasing Exports and increasing elderly. Outflow of Funds is growing faster than inflow of revenue as a result. Finland in particular faces that reality now.

Germany appears to be the only Manufacturing Country in Europe with presently Significant “Larger Dollar” Exports” (identifiable to the country) such as Automobiles, for example.

Italy with its Ferrari/Maserati and  Lamborghini Automobiles participate on a much smaller Export Level numerically.

To assist in providing an Economic Turnabout will have to be the Consortium of  what formerly was called ‘European Aeronautic Defense and Space Company N.V.’ (EADS) but is NOW “The Airbus Group”. It consists of: Airbus, Airbus Defense & Space, and Airbus Helicopters (all ‘Big-Ticket’ Items). It exports to the entire World  can help all of the countries in Europe participating in various aspects of its manufacture, improve their ‘GDP’.

If European Aerospace and Automobile Manufacturers continue to focus their Marketing and Sales efforts in the Middle East and Asia they will succeed. “Going Where The Money Is” should be their Credo. Automobile Manufacture and Export Sales will help their ‘GDP’

European Continent Cellular Telephone And Computer Manufacturers presently have a Superb Opportunity to Fabricate “Bug-Less” Equipment which can be sold around the world. If both Internal Componentry, Software, and the like are NOT CONTAMINATED with “Invasive Electronics” the world populations will flock to purchase said devices. People and Corporations Want Their Privacy To Remain Private. Such sales will help spur on each country’s ‘GDP’.

It is very interesting to note that while there appears to be a slight regression towards Increases In Country’s Debt Loads, many Stock Exchanges are gleeful at the prices of securities on their Exchanges. One must ask: If Country Debt Loads are high with NO foreseeable major improvements expected in 2014, is Financial Manipulation being played to entice investors into a another mere “Bubble”? Are the “Bubble Masters” at work in a ‘Financial Cabal’? If so, when will the “Bubble Masters” decide to exit the “Mirage” (taking their profits with them)?

As Governments show concern about their Country’s  Debt Loads, should not Investors also exercise similar caution in this “Contrived Market” with  Poor ‘Fundamentals’?

There are Financial Opportunities in Markets. However, to look for them wearing “Rose Colored Glasses” is a Fool’s Endeavor.

Reality.

Reference: http://www.bloomberg.com/news/2014-01-03/bank-of-finland-warns-debt-level-poised-to-double-nordic-credit.html

☆ Airbus A380’s Are Added To Emirates Fleet

News Analysis: The Fuel Efficient, as rated Per Passenger, A380 Aircraft have been delivered to Emirates Airlines. Wise Airlines that fly Intercontinental  Point-to-Point Routes using the A380 are impressed with its ‘frugality’. The fact that an airline can use One Aircraft, due to its passenger capacity, rather than Two, saves it money. In many ways Aircraft costs, Fuel,  Flight Crews, Airfield Ground Personnel, Insurances, and Airport Gate Leases are all less expensive for a smartly managed Airline which has chosen to purchase A380’s. Using one aircraft rather than two, on High Passenger Traffic Routes, makes ‘Cents’ and Sense.

Reality.

Reference: http://english.alarabiya.net/en/business/aviation-and-transport/2013/12/21/Emirates-boosts-superJumbo-fleet-to-44-planes.html

Longest Airbus A380 Route in the World: Dubai to Los Angeles (Daily)

News Analysis: Longest Airbus A380 Route In The World Is Dubai To Los Angeles (Daily) a route of approximately  7,234 Nm (13,397 Km) (8,324Sm). The Wisdom of using the A380 is based on: the increased Passenger Capacity vis-à-vis a smaller aircraft; Aircraft Fuel Efficiency per Passenger (or Freight) per Mile; Increased Passenger Comfort in flying a much more Spacious Aircraft; Passenger “Perceived” Aircraft Safety (Four Aircraft Engines are Safer than Two), some would Aver. 

Emirates Airline has won Professional Acclaim during its life for making some Wise business decisions (such as this, people might Opine). 

Reference: http://gulfnews.com/business/aviation/emirates-increases-capacity-on-los-angeles-route-1.1262880

Emirates Airline Shows Good Foresight with Its Increased Airbus A380 Purchases

News Analysis:  Emirates Airlines Shows Good Foresight With Its Increased Airbus A380 Purchases since there is no ‘Equal Capacity’ Aircraft available in the world.  The A380 commenced as a “Clean Slate” Design [CSD] which gave it ‘Systemic Legitimacy’ that Manufacturers seek. To wit, the Fuselage, Wings, Engines, Electronics, Etc. were all designed in consort with the Technical Requirements of Each. “Equilibrium” of Operational Efficiency  in an aircraft occurs as a result. Rather than “Altering” a Wide-Body Aircraft to increase its capacity or range [which seldom works as efficiently as a ‘CSD’], the A380 stands alone in its Capacity and Efficiency.

As the World Economy Improves, the A380 will continue to prove of great value: One ‘Long Haul’ Aircraft, relative to its Capacity and Range, rather than Two or Three Smaller Twin-Engine Airplanes. If one extrapolates the Monies Needed to Equal one A380’s Capacity: Multiple Aircraft, Increased Airport Facilities, Additional Crews, Increased Support Services, and More Insurances. These are proportionately lessened by using the A380.

The Future Aircraft Needs some Airframes mention, indicates: The A380 for increased traffic on International Flights, is Imperative; Proportionately lesser so, the Smaller Twin-Engine Aircraft [due to their Aforementioned Increased Costs].

Wise Airline Management should consider both the Direct as well as Indirect Long-Term Costs for Success in  this Industry.

Reference: 

Airbus Seeks Tranche Release from German Government

News Analysis:  Funding for development cost, pre-production and  production costs make it essential that cash-flow hopefully is proportionately consistent through all stages of the manufacturing process. It is incumbent upon a manufacturer to make certain capital out-flow be in consonance with in-flow, especially during the early stages of on-going aircraft production as is the case here. Since, the Airbus A350 is presently in the early stages of production, learning curve labor costs per aircraft can be anticipated to be higher now than in the future thereby making the higher adjusted  in-flow of funds essential.

Reference: http://tinyurl.com/km8bmju