Airbus dives on flagship delays
The European maker's ascendancy over Boeing looks to be at an end, reports aviation writer Steve Creedy
June 16, 2006
AIRBUS does not expect to recover from delays to its flagship A380 program until 2010 after it was forced to slash next year's delivery targets by more than half and further defer deliveries of its flagship superjumbo by up to seven months.
Shares in Airbus parent EADS lost billions of dollars, as angry airlines considered compensation claims and warned they could reconsider orders after the European manufacturer slashed the number of A380s it expects to make in 2007 from more than 20 to nine.
EADS shares plummeted by as much as 34 per cent, as news of the production woes strained Airbus's credibility and raised doubts about its ability to manage the program.
It was quickly followed by a second hit, as Singapore Airlines (SIA) decided against the company's troubled mid-size A350 and announced an order for 20 rival Boeing 787-9s worth $US4.52 billion ($6.1 billion) and took options on 20 more. This was despite a yet-to-be -unveiled redesign of the A350 to widen the fuselage, add bigger wings and more powerful engines.
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