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Get your super jumbo jet today! Airbus to raise price of A380 by $4m
Good thing I've already got my order in. EADS and Airbus just announced that they're increasing the price of the A380 because the dollar keeps tanking. While the European conglomerate still does most of their business in Euros, the problem is that their aircraft are priced in dollars. This means that when the dollar falls against the euro it cuts into their bottom line.It also makes competition difficult because Chicago based Boeing, their primary rival, does most of their business in dollars and their costs have fallen with the dollar. Now, potential aircraft customers are going to find Boeing aircraft a better deal than Airbus.
In that respect, EADS is sort of between a rock and a hard place. EADS CEO Louis Gallois referred to the Euro as a "Sword of Damocles" for the struggling company(obviously). Why can't American CEOs use obscure Ancient Greek references as metaphors for modern economics?
Reader Comments (Page 1 of 1)
Moody75 Apr 23rd 2008 3:41PM
Grant, your posts are well informed and fun to read.
Now if you could only convince a certain other Gadling blogger to follow your example :-))