Company Watch - Airbus.

For more company news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Jun 19, 2006

Airbus has informed its airline customers that a review of the A380 program is indicating that the delivery schedule will undergo a delay of six to seven months due to production ramp-up issues. However it says that the satisfactory progress of the flight test campaign is expected to lead to certification and introduction of the first aircraft to Singapore Airlines by the end of the year. Only nine aircraft are expected to be delivered in 2007 the delays caused by a bottleneck in the production of the electrical systems. With the aircraft already well behind the initial program this reason given for delay is surprising. Overall, the flight test aircraft have performed more than 1,400 flight hours in over 430 flights and 950 takeoffs. All the tests performed, including at airports, indicate that the A380 will meet or exceed the expectations. http://www.airbus.com Jun 17, 2006

Airbus 'disagrees' with ICAO 'unreality' on A380 wake vortex. Airbus said yesterday that it "disagrees" with ICAO's interim recommendation that there be 10 nm. of separation between the A380 and aircraft landing behind it.Speaking at the company's annual technical press briefing in Toulouse, Senior VP-Flight Division Claude Lelaie described the ICAO position as "not reality." He said Airbus's own extensive testing reveals that heavy aircraft need to be separated from the A380 by just 6 nm. on approach to avoid complications from its wake vortex, or 1 nm. more than currently is required for aircraft flying behind 747s on approach. Lelaie insisted, however, that the ICAO interim policy "is based on...computations which had not been validated by flight test measurements." He said Airbus testing showed that "the A380 wake is slightly stronger than that of the 747." The airframer is recommending that based on current data, aircraft categorized as medium should be 7 nm. behind A380s on approach and light aircraft should be 9 nm. behind. Lelaie said further testing is needed before making a recommendation regarding takeoff separation. He added that flight tests will continue to be conducted by Airbus to prove that ICAO's interim recommendation is unnecessary. Jun 15, 2006

Airbus announces new A380 delivery delays; EIS put off until 2007. Airbus yesterday revealed that A380 launch customer Singapore Airlines will receive its first aircraft too late in the year to place it into service in 2006, as SIA had hoped. The airframer also said that the A380 delivery schedule will undergo a shift of "six to seven months" and that "production ramp-up issues" likely will limit 2007 deliveries to just nine aircraft rather than around 20 as previously planned. A further shortfall in deliveries of 5-9 aircraft is expected in 2008 and approximately five in 2009. A total of 15 aircraft have been assembled including the static and fatigue test airframes, but many are awaiting wiring. Customers for the A380-800F will not be affected by the delays. The manufacturer also said a review has indicated that "further actions are required to secure a ramp-up recovery" in 2008-09. Under the original program schedule, SIA expected to take its first A380 last month. In May 2005, however, Airbus said the program would slip several months. Tuesday's announcement is the first time it formally confirmed that SIA will not be able to place the A380 into service in 2006. The carrier is believed to be taking the first five, followed by four to Emirates and two to Qantas. Jun 14, 2006

Airbus has made 10 flights totaling 30 hr. with an A320 equipped with winglets and plans additional flights in July with an A320 equipped with a second winglet design. Senior VP-A320 Mario Heinen said no decisions have been made. "This is a research program still," he said. "We are collecting data." He added that customers such as JetBlue Airways, which provided one of its A320s for the test flights, are interested in finding a way to mitigate "roller-coaster fuel price developments." If a winglet design is approved, retrofitting A320s "should be something any MRO shop could do," he said. Jun 14, 2006

Airbus seeks an end to A350 'chaos'. Airbus Chief Commercial Officer John Leahy said the "chaos" surrounding the A350 program is unprecedented and needs to be settled soon."Some outspoken customers of ours have created some confusion and the press has amplified that confusion," Leahy said at the Airbus technical press briefing in Toulouse. He said no decision has been made on a redesign but insisted the "uncertainty will end by the [Farnborough] air show" that begins July 17. Airbus had received firm orders for 100 A350s through May 31. However, yesterday Leahy said it has sold about half the number of A350s--182 firm orders from 14 customers--as Boeing has sold 787s, which he claimed is not unexpected given that the 787 program was launched three years earlier. Jun 14, 2006

Airbus received orders for six aircraft in May: Two A318s, three A319s and one A330-200. Jun 12, 2006

Air China will purchase 24 A320 family aircraft for $1.74 billion, Reuters reported. The order is part of the deal Airbus signed with Chinese Aviation Supplies Import and Export Group last year for 150 aircraft. Jun 16, 2006

EADS shares tumble on A380 production delays. News of production delays with the Airbus A380 sent shares of Airbus parent EADS down 26% on Thursday. EADS co-chief executive Noel Forgeard said he first learned of the production problems in April. Forgeard sold some shares in the company days before the delays were announced. EADS executives said they will investigate the delays. Jun 16, 2006

Airbus parent EADS said it anticipates average annual EBIT shortfalls of [euro]500 million ($630 million) in 2007-10 owing to the delays. "We have a serious issue with the industrial ramp-up of the A380. We expect Airbus management to fully deliver according to the revised schedule and, if possible, even to improve," EADS Co-CEOs Tom Enders and Noel Forgeard said in a statement. Jun 14, 2006

A380 customers began to examine their options following Monday's announcement that deliveries will run 6-7 months behind and that just nine aircraft will arrive next year, down from the 20 Airbus had planned to deliver. Singapore Airlines spokesperson Stephen Forshaw told the Associated Press that SIA "was not happy with the delay," but that "the focus right now is working with Airbus to minimize it." Emirates, the largest customer for the A380, said it is "considering its position," according to Bloomberg News. Jun 15, 2006

SITA and Airbus announced a new service "to issue and load software (and more generally any dataset) onto A380 aircraft" that SITA said will ensure "data integrity and the identity authentication of the supplier." SITA noted that there are more than 40 function (hardware/software) suppliers in the Airbus supply chain and 1,400 individual software programs on the A380. It will provide and manage the certification process while acting as registration authority for users. Jun 15, 2006