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Airbus Benefited From Boeing Strike

Manufacturing.Net - November 21, 2008

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PARIS (AP) -- Airbus benefited from the recently ended strike by workers at U.S. rival Boeing Co. as it gave stretched suppliers more time to focus on orders from the European jet maker, the company said Friday.

Record-high orders for aircraft at both Airbus and Boeing earlier this year meant that the jet makers' suppliers of equipment like galleys, staircases and seats were having a hard time keeping up with demand.

But a two-month strike by factory workers at Boeing that ended Nov. 2 "gave our critical suppliers some breathing space," said Airbus spokesman Justin Dubon.

"Reduced demand from Boeing due to the strike allowed suppliers to focus on Airbus," Dubon said.

Airbus executive vice president for programs, Tom Williams, was quoted by the Wall Street Journal in August as saying delays from suppliers had cost the plane maker "a ton of money." Airbus and Boeing receive most of the payments for aircraft on delivery, so delays in delivery translate into a delay in revenue.

Airbus delivered 349 aircraft between January and September, up from 330 a year earlier. It took in a net 737 new aircraft orders so far this year, increasing its order backlog to euro342 billion ($431 billion) based on list prices.

Airbus is a unit of European Aeronautic Defence & Space Co.


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Boeing Strike Impact  11/21/2008 4:44:00 PM
Once again, US Unions have cut their own throat in the long term. While gaining short term benifits, the strike has cost Boeing and it's workers sales and revenue and has ensured that more US work will eventually go overseas. Where is the logic in stopping work for 60-90 days to allow your arch rival time to catch up and regroup. We are only fooling ourselves if we see anything positive in tyhe Boeing strike for the United States. The American auto industry has priced itself out of work and is now poised to go bankrupt. Now Boeing, a very profitable plane maker is making some of the same mistakes. As the cartoon character Pogo was once reported to have said, "We have met the enemy and he is us!" I hope, for American's sake, that industry and the union leadership can come together and decide upon what is best for the country, not for themselves. Workers need decent wages and decent working conditions, that is a given. However, America needs to make and produce products with high quality for the customer in a timely manner. Shutting down business as a result of labor strikes is not only unwise financially, it is downright stupid in a business sense. Boeing lost sales and revenue, the unions will eventually lose 'business' and this country will lose jobs and income. I hope that we wise up before we lose another industry as we have lost the American Auto industry...
Union Blight  11/21/2008 6:58:00 PM
Unions are no longer the protectors of the worker. They are now overpaid lazy and there's not a stinking thing you the company can do once they get their murderous grip on it. It's a cancer and it's destroying this country. I don't think congress has the intestines to hold out on them but if they do and the unions go bust, I'll be thrilled. Yes, jobs will be lost. The automotive industry is lost anyway. Maybe out of the ashes something useful will develop.


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