Company Watch - Airbus.

For more company news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Jun 26, 2006

Airbus A380 will not appear at Farnborough, something Toulouse failed to deny. "No comment," they say. On June 13 Airbus officially announced a review of the A380 program noting that the delivery schedule would undergo a shift of six to seven months due to production ramp-up issues. To date five of the 15 aircraft assembled have actually flown, all Rolls-Royce powered. Airbus only plans to deliver nine aircraft next year. By taking a 'plane to Farnborough for the complete show Airbus will lose up to a fortnight's development time, critical at present. The French holidays loom which will further affect certification. If the A380 does not make the show an over fly or touch and go might happen. Or just an appearance on the Monday (17 July) press day which will disappoint millions. As far as Farnborough's organizers are concerned it is all go for the A380. http://www.airbus.com http://www.farnborough.com Jun 24, 2006

Airbus plans for US dealt blow. The troubled Airbus A380 programme was dealt a potential blow on Friday when an influential US congressmen said federal funds should not be used to upgrade US airports to accommodate the world's largest passenger aircraft. John Mica, chairman of the House aviation subcommittee, claimed it could cost as much as much as $1bn to refit up to 18 airports to handle the 550-seat A380, which is due to enter service next year despite ongoing production delays. Jun 23, 2006

Airbus and parent EADS have been trying to temper a growing crisis since announcing the latest A380 delay last week. The French General Assembly's regular session yesterday erupted into in an angry shouting match and was suspended abruptly when Airbus's troubles were debated. The French government has a 15% stake in EADS, whose executives, particularly co-CEO Noel Forgeard, have come under intense pressure to explain the delays and the timing of their public disclosure. Jun 21, 2006

Airbus reassures airlines on A380; Forgeard stock sale questioned. Airbus and parent EADS responded to increasing criticism over A380 program delays announced last week, with the focus intensifying on EADS Co-CEO Noel Forgeard's sale of [euro]2.5 million ($3.2 million) in stock options three months prior to EADS' stock sinking 26% on June 14 on news of the next-generation aircraft program's setback.Forgeard, who served as Airbus CEO until last year, told Europe 1 radio that he first learned of potential new problems with the A380 program in April and claimed the stock sale was "an unfortunate coincidence." Jun 19, 2006

Russia's Interstate Aviation Committee said yesterday that it had decoded the flight data recorder of the Armavia A320 that crashed into the Black Sea early last month but the analysis uncovered no anomaly that could have caused the accident that killed all 113 passengers and crew onboard. The aircraft originating from Yerevan crashed in heavy rain and low visibility as it attempted a second approach to its intended destination of Sochi Airport. According to the IAC, the recording revealed that the aircraft was not destroyed until it hit the water. Engines were functioning normally until impact and there was enough fuel onboard to complete the flight. The Russian Transport Ministry said it plans a more detailed analysis in which an A320 simulator will be used to help recreate the crash. The IAC completed an initial analysis of the cockpit voice recorder earlier this month but has declined to release details. Jun 20, 2006

Emirates remains confident in 'superb' A380. Emirates remains totally committed to the A380, saying that fundamentally it promises to be a "superb aircraft." Emirates President Tim Clark urged Airbus to instigate program management changes quickly and refocus its energies on getting the program back on track. He said the original A350 would have been a good aircraft "if it was delivered in 1993." Emirates would prefer to wait to see exactly what the A370 will be before committing to the 787-10, "but we are running out of time." Airbus has not yet committed to going ahead with the new variant, he added. "Airbus told us that Singapore Airlines was excited by the new A370, but then they ordered the 787-9." Jun 22, 2006

Finnair took delivery of a former Virgin Atlantic A340-300 last week that will be used on the Helsinki-Shanghai route. The second and third A340s will arrive over the next two years. It ordered nine A350s and three A340s in December. The current MD-11 fleet will be phased out by 2012. Jun 21, 2006

Philippine Airlines selected the CFM56-5B to power nine A320s it ordered; it holds five options as well. CFM International said the engine order is worth $110 million. Deliveries will begin later this year and continue through 2012 if all options are exercised. Jun 21, 2006

Airbus announced further delays in the A380 program last week, saying backups in aircraft wiring installations would push deliveries back 6-7 months. That marked the second delay in the program, and Udvar-Hazy said ILFC's 10 aircraft now will be delayed by 12-14 months. He claimed the order contract allows the leasing company to cancel without penalty if A380s are delivered more than six months late. Jun 21, 2006

ILFC considers $3 billion A380 cancellation as pressure on Airbus mounts. International Lease Finance Corp. signaled yesterday that it may cancel its order for 10 A380s and could do so without penalty because of the program's delays.Chairman and CEO Steven Udvar-Hazy told Bloomberg News that ILFC "could cancel and are considering canceling" an order valued at $3 billion. "We are not happy and on safe ground to cancel the order," he said. Jun 21, 2006

ILFC's Udvar-Hazy caused a stir in March when he publicly advocated that Airbus redesign the A350, of which ILFC ordered 12. Airbus has said it is considering a redesign and will unveil any changes by the Farnborough Airshow that begins July 17. The ILFC CEO told Bloomberg yesterday that unless Airbus is able to "fix" the design problems by the show, "we've got serious problems about taking the A350." Jun 21, 2006

MAS prepares to cancel A380 order. Malaysia Airlines is expected to cancel its A380 commitment, according to an airline source.MAS is close to canceling its order for six aircraft. This website understands from another source in Toulouse that at least one other airline is examining options to cancel its order. Before the delay announced last week by Airbus. MAS had been scheduled to take delivery of its first A380 in July 2007 and its sixth in May 2009. Jun 20, 2006

Swiss International Air Lines announced that it will expand its long-haul fleet with the lease of two Lufthansa A330-200s starting with the winter timetable. Configured with 229 seats, the aircraft will replace a leased A300-600R from Hapag Lloyd. Swiss will take delivery of the first A330 in mid-November and operate it to Malabo/Douala/Yaounde and Nairobi/Dar-es-Salaam. The second aircraft will arrive in December and add capacity on existing routes to the Americas, the Middle East and Africa from Zurich. Its long-haul fleet then will have nine A340-300s and 11 A330-200s plus a leased BBJ2 in service on the Zurich-Newark route. http://www.swiss.com Jun 22, 2006