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Sunday, 22 October 2006
Aircraft firm Airbus needs to sell more A380 superjumbos
European aircraft making company Airbus has put the number of A380 superjumbos it needs to sell up in order to make a profit on the project.

The A380 Superjumbos programme has been troubled by huge cost over-runs and long delays.

Airbus A380The firm's parent company EADS now states that it must sell 420 A380s to break even, and this figure is up from a previous estimate of 270 aircraft.

So far, Airbus has sold 159 A380s and the first plane is now due in October 2007, which is two years behind schedule and the aircraft firm's biggest customer, Emirates, recently claimed it was considering its options because of the delays.

But in a presentation to analysts and investors, EADS chief financial officer Andreas Sperl pointed out that the aircraft maker were still expecting to sell more than 750 of its new planes over the life of the project.

The problems Airbus has been having with its A380 superjumbos have caused the firm to examine how it runs its businesses and earlier this month, they warned of "painful" job losses as a result of the problems with the A380.

The result of this was that France and Germany, the biggest shareholders in Airbus-owner EADS, then called for the redundancies to be fairly shared.


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Name: flaps30 Comment:
What was not emphasized was the fact that the break even point of 420 frames will only be realized if Airbus in fact sells their projection of 750 airframes, this is highly unlikely and reinforces the mistaken mindset at Airbus that this plane is actually going to sell? Analyst's and the Airlines have repeatedly told them that this market is declining and they should rethink their objectives.

The unfortunate result is going to hurt Airbus very badly, their customers have no confidence in them, the proposed 359XWB may not fly due to lack of funding, and its so far behind Boeing's 787 it will never catch up, in fact Airbus would probably be wise to concede that market to Boeing and concentrate on delivering the A380 no matter how late.

The four engine A340 series is not selling, and is a poor competitor to the 777 from Boeing with the more economical 2 engine set-up. So Airbus is really down to the single aisle market which will not sustain them.

To say the future is bleak for Airbus, is a vast understatement.
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Last Updated ( Sunday, 29 October 2006 )
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