Branson Visits Airbus To Check On A380 Order

Richard Branson went to Toulouse, France, recently, looking in on his order for six Airbus A380s. He apparently liked what he saw. "It's an absolute dream," Branson said enthusiastically.

The A380 will be able to hold as many as 800 passengers. The Boeing 747 typically comes with 450 seats. Boeing's only aim at competing with the Airbus, the 747X, was cancelled in 2001.

"It's going to be a beautiful plane," said Branson of the A380, "and it's going to have a lot of wonderful things in it."

Airbus has plunged ahead with production of the A380 and is off to a fast start with 129 orders from carriers including Singapore Airlines, Qantas, Air France, Lufthansa and Korean Air Lines, in addition to Virgin Atlantic, all of which aim to fly the jet out of Los Angeles International Airport. The first takeoff is expected in 2006.

Airbus is making its biggest bet yet with the A380, which analysts suggest could complete the company's transition into a dominant force.

The A380's development costs alone are expected to exceed $12 billion. But assembling the complex aircraft showcases how far Airbus has come since its creation in 1970 by a consortium of European companies.

The building of the A380 involves one of Europe's largest industrial mobilizations since post-World War II reconstruction, with more than 1,500 suppliers in 30 countries making parts. Among them are several hundred US suppliers.

Critics in Congress contend that Airbus, which they say is heavily subsidized by European governments, is making a token gesture to give contracts to US companies. Airbus says American contractors are doing significant work. In fact, Airbus says, 50% of all the work on the A380 is being done by companies in the United States.

One of those is Hitco Composite Structures Inc. in Gardena. Hitco, a Boeing parts supplier for 25 years, for the first time is making components for Airbus — a composite tail section for the A380.

"We view this as just the beginning," said Paul Pendorf, Hitco's president. "We want to earn our way onto other [Airbus] programs."

Chief Airbus rival Boeing expects consumers won't want to fly the A380.

"What's in it for me to sit on an airplane with 500 other people, wait for my bags with 500 other people, check in with 500 other people?" said Gordon Bethune, Continental Airlines' CEO, speaking to the National Business Travel Association last summer.

"I don't think the A380 is going to sell other than to cargo carriers in the US," he added. "Nonstop is the real answer — not bigger."

But Branson, and a lot of other airline executives, disagree. They figure the A380 will be ideal for long-haul operations. Airbus predicts airlines will want at least 1,500 of its super-jumbos.

That doesn't mean it's a cakewalk, says Branson. "The challenge is whether we can give the economy class a more wonderful experience, so that passengers can get out of their seats and do more than just go to the lavatory."

So you might find aboard the A380 casinos, fitness centers, lounge-style bars and duty-free shops.

So far Airbus doesn't seem to be having problems getting customers. Recently, it won a contract for five A380s from Korean Air Lines — a carrier that historically has bought mostly Boeing planes. Airbus says it needs to sell 250 A380s eventually to break even.

How has the 9/11 debacle affected A380 sales? "There has been no postponements or delays" in orders for the A380, said Airbus Chief Executive Noel Forgeard. "Everything is going well and on schedule."

Well, sort of. Because of the plane's record size and weight, airports will have to widen taxiways, reinforce bridges and renovate terminals. In one case, at Heathrow Airport officials will have to spend $750 million to make the necessary changes to accommodate the A380s.

FMI: www.airbus.com