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mpenguin1 · August 31st, 2004, 19:52

Airbus is allowed free-reign to set their own production projections. Take the A380 for example, they create these ridiculous projections of 1,500 - 2,000 A380s. Airbus is not required to start re-paying the "loans" until they have reached 40% of their projection. So essentially, Airbus doesn't have to pay a dime until they reach 600-800 aircraft produced. And there is even a clause allowing Airbus to change the projections on the break-even point!!!! So essentially, Airbus can change the projection infinitely to postpone or avoid entirely repaying the subsidies. This is one tact (of many), which allows Airbus to discount their aircraft so much off of the list price. It's a ridiculous system that distorts the market.

August 31st, 2004, 19:52	#2
mpenguin1 Old Skool Join Date: Jun 2002 Location: Seattle Posts: 10,114 Blog Entries: 5	Re: Boeing Attacks Airbus Aid to Protect 7E7 Airbus is allowed free-reign to set their own production projections. Take the A380 for example, they create these ridiculous projections of 1,500 - 2,000 A380s. Airbus is not required to start re-paying the "loans" until they have reached 40% of their projection. So essentially, Airbus doesn't have to pay a dime until they reach 600-800 aircraft produced. And there is even a clause allowing Airbus to change the projections on the break-even point!!!! So essentially, Airbus can change the projection infinitely to postpone or avoid entirely repaying the subsidies. This is one tact (of many), which allows Airbus to discount their aircraft so much off of the list price. It's a ridiculous system that distorts the market.