Para 8.Point C.
Access to information – global knowledge management /other audit clients and public information underpinned by technology and access to documents/records
A340 External Market forecasts The annual Teal Forecast market reports for A340 were available to PwC via their annual subscription in their PwC London Office – the centre of their global A&D practice - but both the information implications and the documents themselves were excluded from the PwC report and Exhibits. PwC state on their website regarding their Services (UPDATED)-
“At PricewaterhouseCoopers we aim to deliver outstanding service to our clients. We put quality, integrity and client relationships at the heart of our approach. We have talented, enterprising and intellectually curious people who strive to help our clients achieve success.” whilst at Consulting “……….. Our work is always evolving to respond to industry trends and management focus, and we combine our deep technical skills in response to our client’s changing needs. … ” and for the Aerospace/Defence practice PwC UK claim on their website that they have over 100 A&D sector specialists which are an integral part of the
I told PwC UK (587 and audio tape) on 29 January 2007 “I suggest what you do is you get two or three analysts to give their view, probably the guy who is best in the market is TEAL group, a guy called Richard Aboulafia , and everybody, all the others , may have different views but he is worth reading and getting. It would cost you a couple of thousand dollars but he is usually not that far away from reality. I think most people see it like this – this is the end of the line.”
As the centre of the global PwC Aerospace and Defense service was in London they may not only have had the external forecasts from Teal but also the other five + third party forecasters from mid 2006 to early 2007. These were for a total production build of 130 -150 A340 -500/600 aircraft with a market consensus – excluding this Exhibit 8.4 from Forecast International – of 135 Aircraft. To my knowledge some seven external market forecasts were available during the period.
I expect that PwC forensic staff would also have had access through their Global Knowledge Management internal processes to some of the other external forecasts too, though none of these are referenced or Exhibited either in their seven month investigation/Report. I did not know until Sept – Dec 2008 they even had those Teal Reports.
What did these Teal Group A340-500/600 reports say :
By the time of the PwC investigation in 2007 all six other forecasters had released their forecasts to a total A340-500/600 Production Build of between 130 a/c – 150 a/c with a consensus of circa 135 a/c. In 2007 Richard Aboulafia had now entitled his annual summary update for the A340-500/600 – see link as “Dead Plane Flying”.
Mr Neill’s also gave relevant oral evidence on 14 November 2007
Q9.6A: Why would PwC exclude an external market report from Teal (or indeed any of the other five + available) specifically when it is readily available in PwC London and I had told them to obtain it in their response to their question at the outset of their investigation??
Q9.6B: Would the use of market volumes forecast information/implications (of 135 a/c build – together with the Airbus production plans at Para 9.3) have completely undermined PwC “findings of fact” and hence conclusions??