Company Watch - Airbus.

Oct 30, 2006

Air One took delivery of the first of 30 A320s ordered in January. Oct 26, 2006

Airbus still flying high in Beijing, Columbus. Airbus received much-needed boosts from opposite sides of the world yesterday as the Chinese government and an Ohio-based startup placed large aircraft orders. Oct 27, 2006

Airbus considering further revisions, delays to A350. Airbus is moving toward another radical rethink of its A350 XWB that may include a composite fuselage that will combat the 787 and leapfrog the 777-200ER. Oct 25, 2006

German President Horst Koehler surprised the airline industry yesterday when he said he refused to sign a law allowing the sale of a stake in the Deutsche Flugsicherung air traffic control provider. German media is reporting that the bill was approved by parliament in April and the government had hoped the sale would generate [euro]1 billion. Koehler's office said the law was not consistent with the German constitution. Oct 25, 2006

Industry sources said on Tuesday that the regional carrier might order five A320s and could make a public announcement at an air show in Shenzhen at the end of this month. Oct 24, 2006

Last year, Airbus signed an umbrella deal for China to buy 150 A320-family jets for USD$10 billion. Airbus's China spokesman declined to comment on Tuesday. Oct 24, 2006

Airbus told analysts last week that its breakeven point for the A380 program has risen to 420 aircraft from 270, according to a statement on EADS' website. It still is budgeting for 751 deliveries and has sold 159 of the type. Oct 23, 2006

Carriers struggle to adjust to A380 delays. Delays of the Airbus A380 superjumbo jet are forcing carriers to find other ways to meet their capacity plans. Airbus recently said the plane will be delivered up to two years late. Airlines say there are not enough widebody airplanes available to be leased to meet capacity requirements during that period. United Parcel Service is among the airlines evaluating their purchases.

Oct 23, 2006

The Airbus A380 continued testing last week. MSN009, the fifth test aircraft powered by Engine Alliance GP7200s, underwent high-altitude tests around Addis Ababa, whose airport is at 7,500 ft. It then was scheduled to fly to the United Arab Emirates for hot-weather tests. Oct 23, 2006

Aeroflot fleet renewal continues with end of IL-86s, lease of A321s. Aeroflot is forging ahead with its fleet renewal plan, announcing Tuesday in Moscow that it will pull its nine IL-86s from service next month and revealing yesterday that it has finalized a lease agreement for the seven A321s ordered a year ago. Oct 26, 2006

EADS, UK Officials Fail To Name Non-Exec Director. The co-chief executives of Airbus parent EADS held "constructive and useful" talks with UK officials on Monday but failed to name a non-executive director to the EADS board to watch out for British interests. Oct 24, 2006

EADS Co-CEO Welcomes Russian Shareholder - Report. European aerospace firm EADS has welcomed a Russian state bank buying a stake in the firm, the company's German co-chief executive was quoted as saying in a German newspaper on Monday. Earlier this month, German Chancellor Angela Merkel made it clear to Russian President Vladimir Putin that it was not desirable for Russia to take a bigger stake in EADS. Her comments come at a time of deep suspicions in Europe that Russia is trying to use revenues from its vast oil and gas reserves to wield greater global influence. Daimler has said that it wants to hold onto at least 15 percent of EADS and that it would only reduce its holding to that level in consultation with other shareholders. The ownership structure is designed to keep a French-German balance. Vneshtorgbank, Russia's second-largest bank, recently bought a roughly 5 percent stake in EADS, the owner of Airbus, which faces two-year production delays of its new A380 superjumbo and a EUR4.8 billion (USD$6.05 billion) shortfall in future profits. The French government owns 15 percent of EADS, while German carmaker DaimlerChrysler and French media group Lagardere are cutting their stakes to 22.5 percent and 7.5 percent respectively. Oct 23, 2006

Airbus's commitment to build an A320 assembly line in China has also played a role in prompting Shanghai Airlines to consider buying its planes. Earlier this year Airbus received official blessing to make the narrow-body jets in the northern port city of Tianjin. Oct 24, 2006

Shanghai Airlines executives confirmed that the carrier was likely to add Airbus jets to its fleet, but did not disclose the size of the possible order. Shanghai Airlines said the carrier, which operates roughly 50 jets mostly supplied by Boeing and currently has no Airbus planes in its fleet, saw the need to diversify. Earlier this year, Zhou said it planned to double its fleet size in four years. Oct 24, 2006

Swiss International is installing new lighter seats from Recaro on its four A321s and seven A319s. A321 capacity will increase to 200 from 186 and A319 capacity will go to 138 from 126. It already has put the seats on its 14 A320s. Oct 26, 2006

TAM took back an A330 subleased to an unnamed Middle East airline last week and will use it on routes from Brazil to London Heathrow beginning this weekend. TAM now operates 10 A330s. Oct 23, 2006

UPS profits rise nearly 9% as Airbus A380 order comes under review. UPS earned $1.04 billion in net income in the third quarter, an 8.9% rise over $953 million earned in the same period last year, on a 10.5% increase in revenues to $11.66 billion. Oct 24, 2006

Airbus A350 delays could affect US Airways expansion, report says: The delay of the planned Airbus A350 could affect US Airways' expansion plan, according to media reports. Design issues and problems with the superjumbo A380 have forced Airbus to postpone the mid-sized A350's entry into service to as late as 2015. US Airways President Scott Kirby says no firm delivery dates have been set for the planes the company has ordered. Oct 27, 2006

Boeing and Airbus are locked in a tight battle to expand their share of the fast-growing China market, which Boeing executives said was growing at over 10 percent annually for passenger traffic. Oct 24, 2006

Philippine Airlines will decide by year end whether to order eight widebodies from Boeing or Airbus, President Jaime Bautista told reporters last week. He said PAL is considering the A340-600 and 777-300ER as part of an expansion plan that includes an order for 20 (15 firm plus five option) A320 family aircraft from both the manufacturer and GECAS. It took delivery of the first aircraft from that order, an A319-100, last week. The aircraft features "a new coastal-themed interior design that calls to mind the country's picturesque coastline" and a "21st-century enhanced cabin that is the first for an Asian carrier," PAL said. The A319s have eight business-class seats and 126 in economy, while the A320s will have 12 in business and 144 in economy. PAL plans to take two more A319s this year, six A320s and one A319 next year and five A320s in 2008. Oct 23, 2006

S7 Airlines now is operating its Moscow Domodedovo-Irkutsk service with a 128-seat A319. It has leased six of the type this year. It suffered a fatal crash in July when a A310-300 operating the route slid off a wet runway at Irkutsk and crashed into buildings. Oct 23, 2006

Editor: Aram Gesar, eMail: [e-mail]

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Oct 23, 2006