An update of Airbus A440M's project in the BBC News report"Airbus chief 'may cancel A400M".
BBC news reports that Airbus may cancel A400M military transport plane. This is dued to it's heavy weight and engine problem which cause project cost widen 25% from initial budget. Furthermore, a fixed price strategy is hurt a company. Therefore,Airbus' parent company EADS will make a decision whether company should continue A400M project or not.
What make me interesting about this story is the conflict of interest between shareholder of Airbus. On one hand,UK and France want Airbus to built A400M as soon as possible.On the otherhand,Germany want to extend the project to save cost.This will be a pressure on Airbus's decision. Furthermore,a cut throat competition in military aircraft industry by rivals make this decision more difficult. In my opinion, Airbus should go on this project because cancellation of the project may hurt Airbus's reputation. Moreover,the company may cope with financial difficulty if it decide to divest this project because a large accumulated project cost is written-off.
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References
Airbus chief 'may cancel A400M' . BBC News. Retrived January 12, 2010 from http://news.bbc.co.uk/2/hi/business/8452493.stm
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