EADS affected by the weak dollar and supply chain problems

Both the weakness of the dollar and supply chain constraints are significant hurdles for Airbus’s parent EADS, in the medium term.  EAD has been significantly affected by the 23% decrease in the value of the dollar since it sells its planes in dollars but pays for the parts in Euros.  The victory of the US Air force tanker has helped reduce the impact of the weak dollar.  Chief Executive Louis Gallois stated “The main purpose [of the tanker contract] is not to escape the U.S. dollar weakness but it's a very good collateral effect.” 

EADS is also facing supply chain issues which are not allowing them to increase production.  An example of the problems is that they need to order landing gear two years in advance.  EADS is not the only aircraft company having supply chain problems.  Boeing 787 dreamliner has been consistently delayed due to a shortage of plastic fasteners which hold the plane together.