Company Watch - Airbus.

Edited by Aram Gesar, [e-mail] For more global news, data, analysis and features, please go to: http://www.AirGuideOnline.com/professional.htm Sep 18, 2006

Airbus has again had to defend its A380 delivery timings after the head of partner BAe Systems warned of more delays. Mike Turner issued the warning just a week after BAe agreed to sell its 20% stake in the aircraft business. However, majority owner EADS denied the claims, saying it was still carrying out an internal audit into the delays. The ongoing row over deliveries has already claimed the jobs of a number of senior executives. EADS, which is buying BAe's 20% stake to give it full control of Airbus, said no-one could know whether the A380 would face further hurdles. http://www.airbus.com Sep 17, 2006

Airbus operated its fourth A380 passenger test flight Friday, completing a week in which a total of 1,900 company employees acting as passengers tested cabin features and systems. The final flight lasted 15 hr. "The flights have gone very well," Senior VP-Flight Division Claude Lelaie said. "Despite the cabins being almost totally full, what was most striking was the impression of spaciousness." The test aircraft were configured for three classes. Average cruise speed during the four flights was 0.85 Mach, with the aircraft reaching an altitude of 43,000 ft. Sep 11, 2006

Airbus's 22 August orders comprised seven A321s from US Airways, five A319s and five A330-200s from CIT Leasing, three A330-200s from ILFC, one A330-200 from Air Mauritius and one A320 from an unidentified customer. Through August, the manufacturer sold 222 aircraft. Sep 11, 2006

BAe Systems CEO predicts more delays with A380 program. Rising production costs may force Airbus to delay production of the A380 by more than a year, BAE Systems Chief Executive Mike Turner predicts. Airbus officials say an audit of the superjumbo jet is still under way, and no results have been released. Turner is trying to sell BAE's 20% stake in Airbus. Sep 14, 2006

Aeroflot may double its planned $3bn purchase of 22 long-range airliners, it has said. Aeroflot's board has discussed offers for the Boeing 787 Dreamliner and the Airbus A350 XWB model. Aeroflot's fleet of 90 passenger aircraft, much of which is made up of aging Soviet-designed models, is in serious need of renewal, putting the company under pressure to make up its mind after sitting on the order for a year. The carrier could split the order between the two manufacturers. http://www.aeroflot.ru/eng Sep 17, 2006

Aeroflot announced yesterday that it intends to split its order for 44 250/300-seat aircraft between the 787 and A350 XWB. The number of aircraft is double the original stated requirement. The split order follows what is perceived to be a new balanced approach to Russia's relationship with Boeing and Airbus. Aeroflot had indicated a preference for the 787 prior to the re-launch of the A350 in June and Vneshtorgbank's purchase of 5% of EADS last week. Sep 13, 2006

Russia appears interested in a playing a significant role in EADS following the recent purchase of a 5% stake in the Airbus parent company by a state-owned bank, and a senior Kremlin official said the nation will consider expanding its holding in the future. Sergei Prikhodko, a senior adviser to Russian President Vladimir Putin, yesterday made the first official comments by a government official since Vneshtorgbank's purchase of more than $1 billion worth of EADS shares was revealed two weeks ago. It is believed such a stake would have to be at least 20%, and perhaps as high as 30%. But Moscow may seek to exert influence with just a 5% holding, according to Russian newspaper Kommersant, which reported that the EADS stake buy will be "one of the highlights" of discussions at a planned Sept. 22 Paris summit among Putin, French President Jacques Chirac and German Chancellor Angela Merkel. It said the Russian leader is expected to push for amending the EADS charter to allow smaller stakeholders to participate in company management. Sep 13, 2006

EADS confirmed Sunday that Vneshtorgbank, a state-owned Russian bank, acquired a 5.02% stake in the aerospace giant. The holding in the Airbus parent company is valued at more than $1.1 billion. The bank acknowledged yesterday that it purchased the EADS stake, first reported late last month, but declined to say why. Some analysts speculated the move signaled a desire by Moscow to get more involved in Airbus aircraft programs. Others said Vneshtorgbank, which has talked about launching an IPO next year that could raise as much as $3 billion, is trying to boost its value and broaden its portfolio. Sep 12, 2006

Russian bank takes 5.02% stake in Airbus parent. A state-run Russian bank has taken a 5.02% stake in EADS, the parent of jetmaker Airbus. The bank purchased 41.1 million shares, worth about $1.17 billion. Russia hopes to bolster its aerospace sector, and the investment makes the bank one of the biggest investors in EADS. Sep 11, 2006

Interjet uses seven ex-Volare A320s. It has ordered a further 10 A320s from Airbus with 10 options. It will take four next year, four in 2008 and the remaining two in 2009. The aircraft are configured for just 150 seats and the single-class cabin offers a generous 34 in. pitch. Sectors average 1.3 hr. flying time. In a country in which 85% of tickets are sold through travel agents, Interjet distributes via the Internet, a call center and selected airport and city ticket locations. Sep 14, 2006

Qantas CFO Peter Gregg said that the airline has "been told by Airbus that we will get our first A380 in October 2007," but in a note of caution he added, "Airbus has also informed us that they are continuing to evaluate the delivery program and that this will be finalized at the end of September." EADS co-CEO Louis Gallois last week confirmed that the company will update the status of the A380 program publicly later this month, including the release of a revised delivery schedule. Sep 14, 2006

Singapore Airlines, Emirates and Qantas are bracing for further delays in the delivery of the first batch of A380s. Speaking last week at an Airways dinner at the Museum of Flight in Seattle, ILFC Chairman Steven Udvar-Hazy told guests and media that a third A380 delay is likely. According to Udvar-Hazy, the problems with the wiring required for airline customization are worse than expected and another delay may be announced soon. He said ILFC learned of the possibility earlier that day (Sept. 8). It is understood that Airbus management will meet next week to assess the full extent of the problems and how to deal with them. The manufacturer announced a seven-month delay in early June that forced the resignations of former Airbus CEO Gustav Humbert and EADS co-CEO Noel Forgeard. Last week, the highly respected head of the A380 program, Charles Champion, was replaced. His sudden departure is regarded as confirmation of further problems. Sep 14, 2006

Leeham Co. consultant Scott Hamilton said Leeham sources, including one A380 customer, said that "as few as four A380s will be delivered next year." Those aircraft will go to SIA. Under the current schedule, Emirates was expecting its first A380 in September 2007 and Qantas two months later. Originally, Airbus hoped to deliver 20 A380s next year. That number was slashed to seven in June. Singapore Airlines was expecting its first A380 before Christmas but a March EIS now is considered more likely. An SIA spokesperson said that the airline, which announced an order for nine additional A380s at Farnborough, is "awaiting the outcome of the Airbus review." An Emirates spokesperson said, "We are aware of the rumors but have not engaged with Airbus, and as far as we are concerned, we are waiting to take delivery of our first A380 in October 2007." Sep 14, 2006