Company Watch - Airbus.

Dec 11, 2006

Airbus says A380 customers 'upset' but onboard, backs freighter despite ILFC switch. Airbus maintained this week that the A380 is on track for certification this month and entry into service late next year, while insisting it will continue developing the freighter version despite the fact that it has just one customer. Dec 6, 2006

Airbus at a recent briefing on the A350 XWB launch, Airbus COO-Customers and CCO John Leahy said airlines with orders for the A380 passenger version are sticking with the aircraft despite extensive production delays. "I think most [A380] customers I've talked to are annoyed," he conceded. "They're clearly upset. But there's no rush to the doors,,,I think the majority of customers will stay." Airbus parent EADS co-CEO Tom Enders told reporters in Munich this week that the manufacturer remains confident in the A380F, noting that it recently forecast demand for 400 "very large" freighters over the next 20 years (ATWOnline, Nov. 23). He insisted he is "certain" that A380 production problems are "under control now," according to the Associated Press. Dec 6, 2006

Airbus EADS Sees Need For Airbus A380 Freighter. EADS co-Chief Executive Tom Enders said there was no need to scrap the freighter version of the Airbus A380 superjumbo even though it now only has one customer. Dec 5, 2006

Airbus to explore 'various' financing options for [euro]10 billion A350 XWB. Airbus plans to outsource 50% of A350 XWB development and will explore "a range of financing sources" to meet the expected [euro]10 billion ($13.3 billion) in production costs for the program cleared by the EADS board late last week. Dec 5, 2006

Airbus[sup.1] Gallois insisted that the A350 is not a "me-too" aircraft and will be more advanced than the 787 because it is being developed later. "We're using those five years to improve state-of-the-art," he said. The first A350 XWB to enter service will be the dash 900 in mid-2013, followed by the dash 800 in 2014 and the dash 1000 in 2015, with the "ultra-long-range" dash 900R and the 900F to follow later. Airbus will spend [euro]1.8 billion on capital development for the A350. It is excluding that cost in the [euro]10 billion production figure because new facilities also will be used for future aircraft programs. Dec 5, 2006

Airbus EADS approves A350 XWB; Airbus plans five variants, including freighter. Airbus parent EADS' board gave its approval late Friday for the industrial launch of the A350 XWB, the first of which will enter service in 2013. Dec 4, 2006

Airbus Steps Up Rhetoric On Boeing Subsidies. Airbus launched a preemptive strike against Boeing over subsidies as it drew a veil over the funding of its own re-engineered A350 mid-sized jet on Monday, saying Boeing's rival 787 model was padded with government assistance. Dec 4, 2006

No Decision On Airbus A350 Funding. Airbus confirmed on Monday that its newly approved A350 XWB would be funded by a combination of internal and external market sources and did not rule out taking government development loans. Dec 4, 2006

EU Backs Airbus In Boeing Spat. The European Union on Wednesday renewed its support for Airbus in a row over state subsidies with US rival Boeing. Dec 6, 2006

The Airbus A350 will be 60% composite, including the fuselage skin, while the fuselage frames will be aluminum. This represents an about-face for the company, which previously had said that Boeing's decision to make the 787 fuselage out of composite material left it vulnerable to damage on the ramp. Gallois said Airbus felt it was "mandatory" to increase the use of composites to achieve the desired weight and fuel efficiency. However, the additional composites also are driving production cost of the program higher, he said. Gallois added that the A350's development is "predicated on" the Power8 restructuring plan to be unveiled next year. Power8 aims to cut Airbus's costs by [euro]2 billion annually from 2010 and produce [euro]5 billion in cumulative cash savings by the same year Dec 5, 2006

Airbus EADS Sees Need For Airbus A380 Freighter. EADS co-Chief Executive Tom Enders said there was no need to scrap the freighter version of the Airbus A380 superjumbo even though it now only has one customer. Dec 5, 2006

ILFC this week switched its order for 10 Airbus A380Fs to passenger versions and deferred deliveries, with the leasing firm to take its first A380 in 2013. UPS, with firm orders for 10, now is the only customer for the A380F. FedEx cancelled its order for 10 last month in favor of 15 777Fs. Dec 6, 2006

ILFC Switches A380 Order To Passenger Version. Aircraft leasing firm ILFC has switched an order for five freighter versions of Airbus's A380 aircraft to the superjumbo's passenger version, Airbus sales chief John Leahy said on Monday. Dec 4, 2006

British Airways To Talk To Airbus About New A350. British Airways said on Monday it would talk to Airbus about its new wide-bodied A350 XWB aircraft and was not worried the plane would not be developed in time to fit into its fleet-expansion plans. Dec 4, 2006

International Aero Engines announced that Sichuan Airlines selected the V2500 to power two A319s and four A321s. Sichuan also became the Chinese launch customer for the V2500 Select aftermarket program, which will cover the new orders as well as 14 additional A320 family aircraft. IAE said the deal is worth more than $370 million. Dec 6, 2006

Kingfisher Airlines took delivery of four IAE-powered A321s. It currently operates 10 A320s and three A319s and will be the first Indian carrier to operate the A321. Dec 6, 2006

Lufthansa first to order 747-8I with 20 firm, 20 options; also orders seven A340-600s. Lufthansa's board yesterday approved orders for 20 747-8 Intercontinentals--the first of the variant to be sold by Boeing--plus 20 options and seven A340-600s, a total investment in long-haul planes valued at nearly $7 billion. Dec 7, 2006

Lufthansa[sup.1]s Boeing 747-8Is will be delivered from 2010 to 2013 while the A340-600s will begin delivering in 2008. "With aircraft types in the 747 series from Boeing on the one hand, and others from the A330/A340/A380 family from Airbus on the other, Lufthansa is ideally equipped to strengthen and expand its leading position in intercontinental traffic," LH Executive Board Chairman Wolfgang Mayrhuber said. Lufthansa, by modernizing the fleet, the new aircraft will bring further gains in efficiency as well as reduce fuel and operating costs. Both aircraft types are sustainable investments in ecological efficiency. Dec 7, 2006

The Lufthansa order for the 747-8 passenger version may come as a surprise to some given the German involvement in the A380 program. However, many in Germany are incensed by the blame game that has resulted from A380 production problems and suggestions that all German A380 work will be transferred to France. LH, a longtime Boeing and McDonnell Douglas customer, traditionally has striven to split its airplane orders and signaled its continued support for Airbus with the A340-600 order. The airline, which said yesterday that it expects to take delivery of its first A380 in 2009, also is considered a leading contender to be the launch customer for the A350 XWB. Dec 7, 2006

Lufthansa Orders Airbus, Boeing Jets. Lufthansa said it is ordering Airbus and Boeing aircraft worth about USD$6.9 billion at list prices as it expands and modernizes its fleet. Dec 6, 2006

Rolls-Royce To Power Airbus A350 XWB. British aero-engine maker Rolls-Royce said on Monday it had signed an agreement with Airbus to provide its next-generation Trent engine for all variants of the European planemaker's new A350 XWB plane. Dec 4, 2006

Thai Airways May Cancel Airbus A380 Order. Thai Airways said on Wednesday it would cancel its order for six Airbus A380 superjumbo aircraft if talks on compensation for delayed delivery failed. Dec 6, 2006 Editor: Aram Gesar, eMail: [e-mail]

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Nov 13, 2006