Quoting Shenzhen (Reply 133): Quit with the Bull... Strip out the 4 billion government handout then compare. I'm willing to bet that once this is done, you will fill silly. |
Information is straight out of both companies (Boeing + EADS) accounts, and internal statements, Shenzen.
You might be surprised that,
a) it's not a handout, it's an interest bearing loan, and
b)
ALL of the R+D that Airbus do is funded out of REVENUE (to the tune of $2Bn + per year for the last 4 years).
c)The Government loans have gone to fund part of a Capital investment programme of c $5.Bn for the A380.
By the way, EADS government loans outstanding (owing) at the end of 2001 were c $3.9Bn. As of July 27th 2005, they were $6.1Bn.In other words, EADS has drawn down a NET $2.2Bn of government loans in the last 3 1/2 years.
In that time, Airbus has spent $7Bn in R+D total, with $4Bn being on the A380, and $3Bn, obviously on other programmes.
It (Airbus) has also spent, in that time, $5Bn in capital programmes for the A380 alone.
In summary,
Airbus have spent $7Bn in R+D, and $5Bn in capital investment, giving a total of $12Bn, in the last 3 1/2 years.
In that time, it's parent, EADS refundable government loans have increased by $2.2Bn, and private sector borrowing by just less than $2Bn.
The rest has been funded from revenue, i.e. sales (of c $83Bn in 3 1/2 years).
Airbus operating profit (after the $7Bn R+D spend has been deducted) has been declared as c $7.2Bn in 3 1/2 years. ($14.5Bn if you include the R+D that has been funded....)
Capital spending does not affect profit/loss, appearing later as depreciation.
In the same 3 1/2 year period Boeing Commercial Aircraft spent a grand total of $2.9Bn on R+D .
The good news is that it has ramped up significantly in 2005 as the 787 gets going (forecast $1.3Bn in the year 2005, still well short of Airbus's £2Bn +)
Sorry for the lengthy response, but I get irked by comments that Airbus is all about "Government hand-outs", when in fact it's a very well run, and VERY profitable business.
The response is not meant to be "anti-Boeing" either. I'm a fan of both companies, and Boeing have had a hard time coping with the market shrinkage, but they're starting to bounce back now that turnover is increasing.
I don't feel silly just yet.....
