Instructions from the (ivory) tower

Published 9:00 pm Thursday, May 18, 2006

Airbus blundered with the A380, has got a world of problems with its widebody jet lineup and needs to bite the bullet and do another redesign on the A350 — even if it means losing credibility and sales. That’s the view from no less august a body than researchers at Oxford University. http://www.forbes.com/business/2006/05/17/boeing-airbus-profit-cx_0518oxford.html

Oxford Analytica is a group I’ve not heard of before, but it describes itself as “an independent strategic-consulting firm drawing on a network of more than 1,000 scholar experts at Oxford and other leading universities and research institutions.”

It summarizes Airbus’ market position quite succinctly: “Airbus is at risk of losing most of the 200-500 seat market.”

The only way out is forward, the analysts say.

Key Quote: “Airbus has little choice but to announce a full redesign of its forthcoming A350 aircraft in order to compete with the 787. This will lead to increased outlays, diminished strategic options for EADS, and medium-term damage to Airbus’s wide-body market position. Boeing looks set to steal a march on its rival over the next six-eight years.”