Company Watch - Airbus.

May 14, 2007

Air One, Italy's largest private airline, said on Tuesday it has agreed to buy another 50 Airbus A320 aircraft as part of its efforts to expand abroad. The Italian airline, which bought 40 A320 aircraft last year, had options and purchase rights for 50 Airbus planes under an agreement announced in January last year. Air One, one of three final bidders in Italian national airline Alitalia's auction, is building its fleet as part of a push to expand outside Italy. It is targeting flying to more than 35 destinations within Europe by 2012 from 9 now. May 9, 2007

Airbus sold 158 aircraft in the four months to end-April. It delivered 153 aircraft over the same period. Deliveries have apparently not so far been affected by wildcat strikes at some of the country's production factories over planned job cuts, figures released by Airbus showed. The planemaker delivered 38 aircraft in April, maintaining its production rate at more than one plane a day. Airbus[sup.1] cumulative 2007 new orders of 158 aircraft include 24 sold in April. All except one of the aircraft sold in April -- an A340-600 long-range wide-body jet sold to an unidentified buyer -- were single-aisle aircraft from the A320 family. May 10, 2007

Airbus sold 158 aircraft in the four months to end-April. It delivered 153 aircraft over the same period. May 10, 2007

EADS reported a first-quarter loss and said the weak dollar and costs related to the restructuring at Airbus hurt results. The company reported a loss of $13.5 million. Executives expect Airbus to report a large loss this year but return to profitability in 2008. EADS also said it is making progress toward the sale of some of its sites as part of a restructuring program. May 10, 2007

Airbus overhaul may provide clues about new French president How newly elected French President Nicolas Sarkozy manages the ongoing overhaul at Airbus will demonstrate whether he is a free-market reformer or an economic nationalist. Reforms at the jetmaker could eliminate thousands of jobs and close several factories. Observers expect Sarkozy to give Airbus flexibility to cut costs. They also believe he will try to strengthen France's influence over Airbus. May 9, 2007

Emirates followed through on its interest in increasing its A380 order, signing a contract for an additional four, Airbus said yesterday. It now has committed to 47 of the jumbo aircraft and is due to receive its first in the third quarter of 2008. "We have repeatedly said we are committed to the A380 and, having now fully settled all past issues, this latest agreement should leave no one in any doubt about our faith in Airbus, the company and the quality of the aircraft we are committing to," Chairman Sheikh Ahmed Bin Saeed Al Maktoum said. The "settled all past issues" likely refers to compensation for the program's delay, according to press reports. An EK spokesperson told Reuters that a compensation deal has been reached but that it was not linked to the order for four more aircraft. May 8, 2007

Airbus hopes to win 20 orders for its A380 this year and is in talks with new airlines in India to sell the plane, the world's largest passenger aircraft, a senior executive said on Monday. The production of the A380 superjunbo has been plagued by delays -- it is now two years overdue -- and has contributed to losses of billions of dollars at Airbus's parent company, EADS. May 7, 2007

Airbus workers at two French plants temporarily walked off the job last week over the company's proposal for worker bonuses that one union leader called "shocking." Airbus and parent EADS executives, meanwhile, reportedly got a hostile reception during an EADS shareholder meeting Friday, with shareholders shouting at them about Airbus's financial troubles as they made presentations on the manufacturer's restructuring program. May 7, 2007

With new cash, some airlines plan upgrades to planes, services Now that they have more money, some airlines are planning a variety of upgrades. America, Delta and US Airways are planning interior makeovers for planes like Boeing 757s and 767s. Delta and US Airways are also planning to spruce up their food offerings with healthier, tastier items. May 8, 2007

European aerospace group EADS reported a small net loss for the first quarter after taking another big charge to help struggling planemaker Airbus and vowed not to abandon its "inevitable" restructuring. The group, whose profits slumped 94 percent last year on the back of a weak dollar and industrial problems at Airbus, posted a net loss of EUR10 million euros in the first three months of the year, down from EUR522 million in the same quarter of 2006. May 11, 2007

EADS management had proposed paying a 2006 dividend of 20 euro cents per share -- more than the 12 cents approved by shareholders -- but this was blocked by the French government, a source familiar with the matter said on Thursday. The aerospace group is still considering capital measures after management plans for a capital increase were blocked. EADS owns Airbus. May 11, 2007

Emirates and Airbus A380 Agree on Damages; Orders More. Dubai-based Emirates, the largest customer for the Airbus A380, said it had agreed compensation with the European planemaker over the delayed delivery of the world's largest passenger aircraft. Emirates has ordered four more A380 aircraft, taking its total orders to 47, Airbus said on Monday. Simon said the purchase was not linked to the compensation. May 7, 2007

India's booming economy has led to a sharp rise in air travel, with a number of private airlines starting operations in the past three years, putting pressure on airports in cities such as New Delhi and Mumbai. Kingfisher Airlines, owned by India's brewing and spirits giant UB Group, is the only Indian airline to have ordered the A380. It has ordered five A380 aircraft and has an option for five more. Deliveries are to begin in 2011. Airbus expects Indian firms to place orders for 1,100 passenger and freighter aircraft valued at about USD$105 billion over 20 years. May 7, 2007

Airbus completed painting on Singapore Airlines' first A380 last week in Hamburg. Painting took 21 days. Delivery of the aircraft is scheduled for October May 11, 2007

Emirates orders four more A380s. Emirates Airlines has reached an agreement with Airbus for compensation related to delivery delays of Airbus A380 jetliners. The airline has also ordered four more of the superjumbo jets. The new order is worth almost $1.3 billion, based on list prices. May 8, 2007

India's Flyington Freighters said on Wednesday it would not go ahead with an order of freight planes from Boeing after it signed a previously announced USD$1 billion order for six A330-200F cargo aircraft from rival Airbus. Flyington Freighters will pay USD$175 million for each Airbus plane, said Kiran Rao, executive vice-president for marketing and contracts, customer affairs at Airbus. May 9, 2007

Saudi Arabian Airlines is looking to buy up to 60 new aircraft, the Arab Air Carriers Organization confirmed yesterday, and intends to establish a low-cost subsidiary. SAA also announced a service expansion including an increase in flights to Dubai to 44 weekly from 30 and added frequencies to London Heathrow, Paris Charles de Gaulle, Madrid, Frankfurt, New York JFK and Washington Dulles and new seasonal services to Vienna, Athens and Munich. May 8, 2007

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May 7, 2007