“It sounds like [the Boeing] 787, 747-8 and [Lockheed Martin] F-35 to me,” says Richard Aboulafia, vice president for analysis at the Teal Group, referring to programs that had to incorporate late design changes during production ramp-up. “If you are missing important milestones, you get beaten up by the financial markets or your customers. . . . You want to meet time guarantees more than performance guarantees.” Introducing upgrades later in production while keeping the schedule intact “is more of a problem in the long term,” Aboulafia asserts. One of the major issues of putting risks on balance sheets is the question of residual values, which become relevant when an operator plans to sell an early-batch A350. The approach is also very expensive, both for Airbus and its suppliers.
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