Corporate Socialism Crashes At Airbus
By Erick Posted in Economy — Comments (48) / Email this page » / Leave a comment »
What do you get when you combine the national interests of multiple socialist countries into one big economic enterprise? It's one word. Come on. It's not hard. That's right, that's the answer. Airbus.
For five years it has dominated Boeing in the airplane race. It has introduced scores of planes and then had its European national parents subsidize the costs of the plane so airlines would find them attractive.
In the process, Airbus has grown heavy under union contracts, labor problems, controlling countries blocking restructuring programs, multiple problems caused by the use of multiple languages, etc. Now, for the first time in six years, Boeing has beaten Airbus in the annual plane race -- taking 1,044 orders in 2006, compared to just 790 net orders for Airbus (and we won't talk about the cancellations of so many A380's by major airlines).
As Boeing has sought to be more nimble while creating more fuel efficient twin engine jets, such as the new 787, along with a redesigned 747-800 that is much more fuel efficient and quieter, Airbus fixated on the 380 cluster . . . .
Mixing socialism, national trade policy, and corporatist aspirations is now coming home to roost in the 10,000 jobs Airbus will now have to cut -- one-fifth of its workforce.
For more, go here.