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Airbus "weak dollar death" story contested?

TinWing

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Here is the original November 22 (American Thanksgiving!) story:

http://news.bbc.co.uk/2/hi/business/7108146.stm

BBC said:
Airbus fears 'weak-dollar death'

Airbus's savings plan was drawn up when the dollar was stronger
The weak dollar is threatening the survival of European planemaker Airbus, chief executive Tom Enders told workers in Hamburg on Thursday.
And the firm once again warned that its cost saving plan would have to cut deeper to counter the impact of the weakening US currency.

Airbus is owned by European aerospace and defence group EADS.

"The dollar's rapid decline is life-threatening for Airbus," Mr Enders said in the speech to employees.

"The dollar exchange rate has gone beyond the pain barrier," Mr Enders added.

And he said that Airbus's entire business model needed reviewing as "reasonable processes of adjustment" were hardly possible now, he said.



'Break even'

Airbus is already shedding about 10,000 jobs and selling plants as part of its Power8 restructuring plan after delays to its A380 superjumbo drove the planemaker into a loss last year.

The dollar has hit new record lows against the euro this week, something which Airbus says favours its US rival Boeing.

Earlier this month Airbus warned it may have to deepen its planned restructuring after steeper than expected third-quarter losses.

It said a net loss of 776m euros ($1.14 bn; £541m) - as against a loss of 189m euros in 2006 - was down to delays with its A400M military transport aircraft.

And it said full-year earnings would only "roughly break even".

EADS said it might have to make more savings, as cost-cutting plans were drawn up when the euro was weaker.

And back in September, Airbus chief operating officer Fabrice Bregier said a further 1bn euros might have to be added to a savings plan which was originally based on a $1.35 euro.

Here is the wattered down November 23 story:

http://news.bbc.co.uk/2/hi/business/7108872.stm

BBC said:
Airbus staff 'deny dollar death'

The weak dollar is an advantage to Boeing, Airbus says.
Employees of European plane maker Airbus have denied that the weak dollar is threatening the company's survival, a German newspaper report has said.
The strength of the euro does create a problem but does not threaten the firm's existence, the firm's workers' council told the Berliner Zeitung.

A separate report said parent company EADS may cancel the sale of factories because of the currency woes.

Airbus' chief executive has said the dollar's decline is "life-threatening".

'Currency pain'

Thomas Enders said the exchange rate had gone "beyond the pain barrier".

And he warned that its cost-saving plan would have to cut deeper to counter the impact of the weakening US currency, which has hit new record lows against the euro this week.

Because Airbus mainly manufacturers its aircraft within the eurozone but sells them in dollars it is highly vulnerable to foreign exchange fluctuations.

The plane maker says this favours it arch-rival, Boeing.

Airbus is owned by European aerospace and defence group EADS.

According to Sueddeutcsche Zeitung, EADS may now not sell three German Airbus plants, as well as the parent firm's own Augsburg factory, and instead group them into a new division.

Job losses

Airbus is already shedding about 10,000 jobs and selling plants as part of its Power8 restructuring plan after delays to its A380 superjumbo drove the plane maker into a loss last year.

Earlier this month Airbus warned it may have to deepen its planned restructuring after steeper-than-expected third-quarter losses.

It said a net loss of 776m euros ($1.14bn; £541m) - as against a loss of 189m euros in 2006 - was down to delays with its A400M military transport aircraft.

And it said full-year earnings would only "roughly break even".

And back in September, Airbus chief operating officer Fabrice Bregier said a further 1bn euros might have to be added to a savings plan which was originally based on a $1.35 euro.

Does this amount to a retraction? Just what did Tom Enders really say?
 

flateric

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As we use to say, 'dollar rises - bad for Russian, dollar goes down - bad for Russian'...
 
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