The European Aeronautic Defence and Space Company (EADS), is celebrating its triumph over US rival Boeing in the race for the biggest military contract worth $35 bn. Airbus, the commercial aircraft arm of EADS, which contributes two-thirds of its revenue, posted operating losses of €881 mn, offsetting the strong performance of EADS' military hardware businesses.
As a result, for the first time in five years, EADS reported
a loss of €446 mn in 2007 from a modest profit of €99
mn in 2006. The company's earnings before interest and taxes
fell from €399 mn to €52 mn. EADS is still under
pressure to deal with Airbus, whose management is made up
of former rivals from France, Germany, Britain and Spain.Airbus
was leading during the last decade as its rival Boeing had
to grapple with a painful and slow restructuring. It had
snatched the top sales spot from Airbus for the first time
in 2006 after introducing a new plane, the 787 Dreamliner.
However, the equations changed and Boeing acquired 11% more
market share in 2007. Boeing sold 72 planes more than Airbus
in the sales race in 2007, handing its European rival a
second straight loss in the high stakes game of commercial
aircraft sales. The Chicago-based US jet maker's commercial
aircraft orders rocketed past 1,400 last year, compared
to Airbus' 1,341. In terms of deliveries, Airbus was ahead
of Boeing by 453 to 441 in 2007.
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