This is probably a good thing in the end for Airbus – it has been readily apparent that a series of fudged compromises has been creating a problematic cost structure. At some point Airbus was going to have to undergo a transformation from a ‘treaty’ structure business to a single entity, and the most likely outcome of this crisis is to do this. That would be very bad news indeed for Boeing, which currently has only one viable aircraft model, the 777 (compared to the A320, A330/340, A380 all with multiple variants.) The proposed 787 has so many new features and design elements, plastic fuselage, high cabin pressure, etc, as well as an Airbus like multi-site multi-partner manufacturing approach that so far Boeing has displayed no ability to do effectively (and indeed there is plenty of military program evidence that Boeing cannot), that 787 delays are probably make the A380 delays look like a mere bagatelle.

Meanwhile, the other likely outcome is the rapid ramping down of Airbus manufacture in the UK, with a disastrous impact not just on UK jobs, but by lowering expertise, a loss of the very subcontracting business from Boeing that those same UK Airbus suppliers also benefit from (yes A380 and A350 suppliers also supply the 787.)

Finally there is the bizarre choice of BAE to sell its Airbus stake at the bottom of the market, to buy US defence assets with the money, at the top of the market – sheesh! The banks really conned a willing victim. Anyone looking at the US deficit and the nature of US military equipment needs can see that the US military procurement cycle is at a peak and the sort of products that BAE are moving into are completely different from what the US military is going to need over the next decade or two. Moreover, no one in washington will see BAE as a US company, and a short history of the Joint Strike Fighter program can show you what treatment BAE can expect.

For many of the commentators here being a little Englander clearly takes a back seat to intelligence. German unhappiness is posturing for a better deal -- which will almost certainly come at the UK's expense thanks to BAE.

MacK, London,

To mr Goddard above who said "Let us all hope that Airbus continues as a European success story"

Really, such sarcasm is quite unwarranted. Sure, Airbus has its problems, but who knows, they might some day recover. Right?

Espen Robak, New York,

What's going on with the jerries lately? first Dailmer Chrysler is ready to break up, and now Airbus? In both cases is the germans pulling out. To much for the industrial heart-beat of Europe?
Good news for Boign and Ford, somebody is smiling in the good old USA.

F.Bonmati, NewJersey, USA

To Art of Kamloops, BC, Canada

Interesting that you should choose to call someone else naive. While Ms/Mr Luscombe were rather direct in their commentary, the notion that "US government indirectly funds their 'civilian' manufacturers with fat military contracts" as justification for "launch aid" is laughable.

Even if the intention of a military contract was some sort of subsidy, those military contracts result in weapons or defense systems AND planes. Launch aid? Just planes. The chronic European underfunding of defense issues is a whole other issue.

Richard, New York, New York

Muahh hah ha

Don't you all realize it's just another Bush conspiracy!

Long live Boeing!

Drew, Los Angeles, CA/USA

Gentlemen

You write:
:Airbus and EADS into an aerospace giant with more than 110,000 employees, including 17,000 in the UK."

This means that EADS, of which Airbus is a part, has 110,000, of them half, 55,000 at Airbus ??

regards

oton T. Blum, albuquerque, NM87111, USA

To Art in BC:

It's not Boeing's fault that Europe refuses to spend money on defense.

Fred, York,

I'm afraid this much governmental interference in industry can only end in failure. Between the governmental squabbles and the built in inefficiencies... its likely the product or cost will suffer. For instance, if it is true that France is the least efficient, why are they doing the most work?

Airbus exists to employ Europeans more than it does to make airplanes or money. For better or worse...

Jesse Fettkether, Tulsa, Oklahoma, USA

The breakup of Airbus is a metaphor for the failure of the much wider European experiment. The recent referendum shows that, at no point, are the French willing to compromise their own national interest for any European ideal.

Desmond Persaud, Wimbledon, London, UK

The future of Airbus was doomed 2 years ago when it was seen that the A-380 was critically overweight.
It was then that BAE-Systems , now a global company decided to get out.
Sadly any retstructuring of that company will probably mean that Wing maufacture leave the UK, with the factories sites at Filton and Broughton sold-off for housing development to generate cash.
This type of ahhnilhation of large UK manufacturing industries has typified the Tony Blair era.
Gordon Brown does not seem to have anything better to offer?

Michael Blatchford, Bath,, UK

Seems to me that Daimler-Chrysler is trying to dump their Chrysler holding, and Airbus, keep their money in Germany. The bottom line, profit for shareholders.
The working people are being shafted more each day.
The world needs to wakeup and get their issues together. One is stop bleeding of jobs to immigrants workers, the poorer ones.
It is a problem in the US, and Europe, Britain.
Japan, last I heard, uses very little outside immigrants for their local factories, some Koreans. They tend to their workers, less Temps, and oursourcing.
Giving away our cultures to social programs, needs to slow down. Support working people with families.. Thank You

Jack Dawes, San Diego, USA/California

Airbus has always been a monument to French vanity. As long as everybody else paid, ie the tax payers of Germany and the UK, and the French got the economic benefits and glory, all was alright. Of course it doesn't matter that the business was uneconomic overall, economics and even aircraft construction was not the point of the business. So when any one questions the French role, they behave like babies throwing toys out of the pram. Industry in general and the aircraft/ high tech sectors would be far better off if Airbus is broken up. Certainly tax payers will be.

J Lee, Epsom, England

Mr Luscombe...

A naive comment, at best. The US government indirectly funds their 'civilian' manufacturers with fat military contracts; this has been the case since WWII.

Furthermore, it is **US government money** that has funded a very high proportion of all the research behind Boeing's products (and the products of previous American civilian plane manufacturers): avionics, metallurgy, flight dynamics, software, etc.

This is just more of the right-wing dishonest nonsense about 'get out of the way, government, and let the market...".

Art, Kamloops, BC, Canada

It certainly now looks as if BAE-Systems as a Global operation did the right thing for themselves recently when the decided to cut and run for EADS.
Retrenchment within EADS though could well result in those remaining in the Airbus Club deciding to swithch Wing manufacture to say France or Germany from the UK, and possibly with EU Grants for new factories there.
The Filton and Broughton sites could then be sold off for housing development to help bolster EADS coffers.
In which case yet another UK industry will have been wiped from the face of the map.
Sadly all of this was so predicatable as soonas the over-weight problems with the A-380 became apparent.

Michael Blatchford, Bath,, UK

Let us all hope that Airbus continues as a European success story: Those who think otherwise, and just want to see the Union fall apart should should perhaps live elsewhere.. Ah but what a surprise, I see that the critics are already living outside of the Union.
A pity Blair isn't playing his part of our success story!

Peter GODDARD, LE ROURET, France

Governments should get their snouts out of this industry and it should be left to the free market to dictate failure or success. EADS/AIRBUS should publish full annual accounts.

F Luscombe, Plymouth, Devon

There appears to be two problems here. The first is, can airbus survive without state subsidies, and can their aircraft compete on a global scale? Subsidies take money out of the peoples pockets and away from other social needs, they are usually given out with an underlying political agenda. The political agenda of France, England, and Germany won't always be the same. Each country needs to take care of it's own people first. The nation state exists to serve its people and not the political needs of any other countrys political structure. The second is, can the aircraft compete? Here in the states I have no problem with Toyota , Mercedes benz , or BMW , if they have a better product and sometimes they do.

peter kuck, west Hartford, CT. USA

As a continuing example of European "co-operation", the sooner Airbus, and the EU generally, break up the better.

Gerry Watts, Hobart, Tasmania, Australia

European defense agency will see to it the Airbus is robust

jim gri, Minneapolis, USA

I predict in the end the institutional powers of the European Defense Agency will ensure that airbus remains a viable producer of aircraft helping to underpin the european defense industry

jim, Minneapolis, USA

ryan owen : "typical of europe. it does not work"....

By waiting for news on the delays of B787 and american glitches.....

Tom, Toulouse, France

Airbus will succeed because the aircraft are technically excellent and the company has always managed to offer favourable financial packages - often the most important consideration - to its buyers. The losers will be the British workforce; left vulnerable by the desertion of BAE to the Pentagon.

Tim Webb, London, UK

It has been very evident for a number of years that France has been becoming more and more arrogant in it's "percieved" importance to Airbus (which it is trying hard to own in isolation of Germany and UK). However, based on productivity figures, UK out performs the other two and Germany outperforms France. Therefore, IF the French are allowed to grab the whole company it would spell disaster for UK Aerospace plc and an end to Airbus. All power to Mrs. Merkle. Pity we don't have a leader prepared to fight for our share!!!!

I Webber, Darwen, England

It would be wonderful to see Airbus go bust. Taxpayers across Europe need to learn that voting for big-ticket vote-buying socialists has consequences.

mark mcfarland, dubai,

Who ever thought the French & Germans could work together ?
With French sloppiness & German precision it was doomed
from the start

Maggie Millington, Brittany, France

Europeans have for years now been contemplating Airbus as the baby of Europe and what it stands for. As much as the Germans have their own interests to protect since they do play such a major role in the production of this aircraft, the reality about the airbus aircraft is far from what it normally appears to be.
Airbus family of aircrafts are expensive to maintain and are not so fuel efficient as claimed. Despite this fact, airlines keepn using them due to the many sots of 'discounts' Airbus would be willing to offer for their aircrafts to be used as opposed to Boeing which can back its own data.
Sooner or later, much more than this political issue will emerge which may eventually cause airlines worldwide to shift back to Boeing in full force.

Viksing, London, United Kingdom

This would be a real disapointment and really question the success not just of this union but of the european union as a whole. Considering the amount of government influence and subsidies this company has recieved its a poor reflection on the respective governements also.

Lorre 10, Stockholm, Sweden

No ned to whine,TomTom. Airbus seems to have lost its way in political infighting & may soon join Leeds in the lower divisions. http://business.timesonline.co.uk/tol/business/industry_sectors/transport/article1409177.ece

BigJake, New Jersey, USA

its only a matter of time, and less than you think befor there is on airbus production in the uk. After all is dos'nt make economic sence.

Garry Webster, Norwich,

Poor Americans seem to dislike Airbus but their destiny lies with China and so far they are losing.

TomTom, Leeds, England

Airbus may become much more efficient if it were to embrace a more wholesale outsourcing approach, China. Analysts keep claiming that it may seem like jobs are being "shipped out" but in reality more jobs are created, let's put it to the test. If they are right the shareholders would see a tremendous benefit as Airbus should be able to easily overtake Boeing much more quickly and regain sales throughout Asia.

Calvin Hobbes, Sunnydale, USA

Hate to see Airbus broken up and the UK see redundancies but we know the history of collaboration between France and Germany

jeff, saxmundham, UK

Playing politics with the French is like supping with the Devil and Dr. Merkel will need a very long spoon indeed if she is to succeed. However, in my opinion, German and French business practice are not compatible and, therefore, I wish her well in the attempt to "split" the company since if it were to be "depoliticised" or better still follow a German business model, it would become a dominating force in aviation once again.

Jeffre Jameson, Dhahran, Saudi Arabia

typical of europe. it does not work

ryan owen, Houston, USA

Ahem... is Airbus still about to drive Boeing out of business? :-)

Matt, Northampton, Massachusetts, USA

Nothing has ever worked ,when things are made between several eu countrys.I worked at the paris air show at labourge milatery air base where the eu fighter plane was flying 23 years ago and it is still not in prduction. The airbus situatuin will end up the same with the uk spending billions and looseing out to bowing. Go it alone britain and foreget these temperamental alias

k armstrog, kent, england

Just another example of how the EU will ultimately fail as an experiment . Nations do not change, andnational traits do not change whatever the spin put on it all. The United Kingdom needs to extract itself from this mess before it is dragged down into the debt ridden, subsidy ridden economies of Europe collapse.

graham casey, Perth, australia