No Smoke Without Fire

With the Dubai Air Show a little over 4 weeks away, the ongoing saga of the AMF investigation has cast a cloud not only over a venue traditionally seen as “Little Paris” for Airbus sales successes, it also mars the delivery of the first Airbus A380-800 to Singapore Airlines next Monday.

Image courtesy of IHT.com/Rémy Gabalda/The Associated Press

The stock selling deals and burying of bad news prior to last summers revelation that the flagship Airbus A380-800 would be delayed by more than a year spelt 2006 as being one of the worst on record for Airbus in the public domain - not least because of its indecision on the A350, which 12 months after its (re-)launch, is rumored to be desperately short on performance targets that Airbus has often spoken about to the press and potential customers.

More on that story in another entry.

While the investigation is still in the midst of being carried out, it is both odd and surprising that the emanting news has already rattled Airbus Chief Executive, Thomas Enders.

In an interview with Focus Magazine, Enders complains, or whines rather, that he feels “criminalized and stigmatized by the groundless allegations.”

Now he and other EADS executives are talking up of an unprecedented move to sue the AMF regulator. Just how successful or otherwise such reaction will be is anyones guess - not least because the AMF has a job to do first.

One has to ask whether if Enders is indeed vindicated of any wrongdoing, such protestations so very early on could suggest he is either preparing the press for the sympathy vote if he is found guilty, or perhaps a merry-go-round of blaming other executives who may have instigated the stock selling may ensue.

During all of this quagmire, it is the very airplane Airbus has taken over a decade to develop as its icon and marque on the industry whose image suffers. With a bill standing at $18bn and rising, a two year delay, the A380 will have to ensure that its handover next week coincides with a smooth, seamless entry into revenue passenger service.

Some may have even seen the recent British Airways A380 order as a sign of a resurging interest in the type. That is by no means guaranteed by any stretch.

Image courtesy of Spiegel

The irony then, that the so-called “father” of the A380, handsomely paid off for his abysmal leadership is now back in the firing line of the AMF. Not just because he and others allegedly sold short on the project he sought so badly to develop at any cost, but because someone has to be held accountable.

While there is no smoke without fire, the fact someone will be burned by the outcome is inevitable. All that remains to be seen is that the AMF investigation be carried out without any hindrance or political interference.

6 comments October 8th, 2007