Airbus Admits Reality, Will Unions Go Along

Airbus has confronted reality. Problem is, its unions have not signed on to acknowledging reality yet. IG Metal and Force Ouvriere have threatened slowdowns over the new Power8 plan. A slowdown is, of course, the last thing Airbus needs. It can lose money 'til the cows come home, but not delivering planes on time it can ill afford.

Also, note this strategic insight, albeit with hindsight from Airbus chief Louis Gallois:
``We should have done this many years ago at the time when we created Airbus,'' said Gallois, referring to the creation of the planemaker as a single company in 2000. ``Boeing was in difficulties then, the dollar was strong, and we were selling airplanes like bread.''

The best time to undergo surgery is when you are healthy, not sick. Boeing chief McNerney is no doubt listening, watch for moves out of Boeing aiming to widen the gap.