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Journalism of Courage
On the face of it the A400M,a dumpy military transport made by Airbus,and Boeings sleek 787 Dreamliner pictured have little in common other than that they both flew for the first time in the past few days. But they share a similar history: both planes finally took to the air more than two years late and far over budget. Moreover,both were developed in unnecessarily complicated ways,even though big aviation projects are difficult enough without taking on further risks.
In an effort to reduce the cost of developing an innovative new aircraft,Boeing recruited risk-sharing partners who became largely responsible for designing whole sections of the plane,while creating one of the most complex and extended supply chains in industrial history. But Boeing failed to supervise its partners work adequately and has probably ended up spending more to put things right than it ever would have saved. With the A400M,European defence ministers jeopardised the project from the outset by setting up a politically conceived consortium to produce the aircrafts giant turboprop engines rather than allowing Airbus to buy them from Americas Pratt amp; Whitney.
If the 787s testing goes well,late next year All Nippon Airways,the patient launch customer,should receive the first of the 50 planes it ordered in April 2004. As long as the 787 meets its range and fuel-efficiency targets there are doubts because the first planes are overweight,it should be a commercial success. The delays in getting it airborne have damaged Boeings reputation and cost at least 2.5 billion. But with 840 firm orders even after a spate of cancellations,the 787 is still the fastest-selling new airliner in history.
The future of the A400M is less certain. Airbus foolishly negotiated a fixed price of 20 billion 23 billion at the time to supply seven European governments with 180 of the planes in 2003. It is already more than 2 billion over budget. The current chief executive of Airbus,Tom Enders,says it would be better to cancel the project and return the 5.7 billion Airbus has already received than to carry on with the horror. He has asked his customers for an extra 5 billion to cover his costs,but getting agreement is proving difficult. Few expect the A400M to be scrapped,but any profit for Airbus is also a remote prospect.
The Economist Newspaper Limited 2009
