Wounded Airbus Could Be Trouble For Boeing

Now that the last orders for Airbus’s A-380 jumbo jet cargo version have been canceled, there is a school of thought that the big European airframe company can spend more time and effort on the commercial version of the plane.

Boeing has run the table over the last year with its new Dreamliner being picked by several airlines who need mid-sized jets and its 747-8 taking business that might have gone to the Airbus super-jumbo.

Airbus is about to cut 10,000 jobs across 16 sites throughout Europe and its large investors in Germany and France are undoubtedly angry about having to go to their countrymen with pink slips. Never a good move in the business of politics.

Big companies which are cornered and bruised are often dangerous, especially one like Airbus with a parent, EADS, which has access to public funds.

If Airbus uses its slimmed down resources to pick up production on its mid-sized A-350 and its Q-380 jumbo, the table may not always be turned against it and in favor of rival Boeing (BA).

Boeing recently cut its own C-17 military cargo plane program because of lack of orders and will begin to cut employees in that division of its business.

If Airbus makes a concerted effort on its two product introductions it may be formidable competition for Boeing again.

Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.