EADS Shares in Tailspin on Airbus Delays

AP via Yahoo ^ | June 14, 2006 | Angela Charlton

[COEXERJ145]

PARIS - Shares of Airbus' parent company plummeted Wednesday after new delays in the delivery of the A380 superjumbo raised questions about the company's management and strategy.

The selloff came after Emirates Airlines said it is reconsidering its order of the double-decker A380, the world's largest passenger aircraft — exacerbating an already delicate situation for European Aeronautic Defense & Space Co. and its largest subsidiary.

Singapore Airlines and Qantas Airways, which also have large A380 orders, said they are seeking talks with Airbus and want compensation. Malaysia Airlines also was reviewing the terms of its agreement with Airbus to buy six A380s.

Singapore Airlines also delivered a second blow to Airbus by annoucing it will buy 20 Boeing 787-9 aircraft for $4.52 billion and take options on another 20 planes. Airbus had hoped the Asian airline would be one of the first and biggest customers for another new model, the A350, that would compete directly with Boeing's 787. But airline and leasing company dissatisfaction with the design of the A350 has led Airbus to consider a costly redesign of the plane, delaying its launch for several years.

[COEXERJ145]

Ping to you.

[Jameison]

"EADS Shares in Tailspin on Airbus Delays"

Nice.
Very nice.

[nikos1121]

"Forgeard said in a conference call, deflecting suggestions that the setback could cost him his job. "We are working on managerial measures inside Airbus." "

Translation: "My @ss is covered but some heads, (not mine) are going to roll."

[Brilliant]

I guess they'll have to work during the summer Holiday.

[randog]

A classic manufacturing story played out over and over--sales starts selling before engineering is done engineering.

[sam_paine]

sales starts selling before engineering is done engineering.

This is not an article about individual engineering programs. This is a story about strategic blunders of management, throwing all hands at the "AirSUV" A380 and pooh-poohing the tech-laden fuel-mizer 787 segment.

Boeing's 787 production line capacity is spoken for as far as the eye can see. A350 version 1 2 3.... is a second guess to the original mgmt strategy.

[Paleo Conservative]

The announced delays are now well over a year. The 747 had serious teething problems, but they weren't delayed this long. In fact it was just eleven months after the first test flight that the first revenue flight of a 747 ocurred. Considering the improvements in the design tools available now as opposed to the 1960's, you'd think Airbus would have been able to fix problems on the A380 faster than Boeing was able to fix the 747-100 and 747-200.

If you want on or off my aerospace ping list, please contact me by Freep mail.

[Yo-Yo]

That's going to leave a mark on either BAE or EADS as they try to force EADS to buy back BAE's interest in Airbus.

[pabianice]

With the failure of the fuselage on Boeing's 787, Boeing won't be far behind.

[hattend]

bttt

[COEXERJ145]

That has to the the stupidest comment of the year.

You are obviously clueless when it comes to aviation.

[jpsb]

How is the 787 comming alone? Hope Boeing doesn't these problems too.

[NavyCanDo]

Come on Boeing Stock keep going Up Up Up - Daddy needs to take the family to Wally World this summer

[RayChuang88]

Actually, it took almost two years for Pratt & Whitney to overcome their JT9D problems with the 747-100. But by then, Boeing had started its design process for the 747-200B with the General Electric CF6-50 engine and the Rolls-Royce RB.211-524 engine, which by the early 1980's overcame the early issues with the 747-100 and by the early 1980's achieved ranges almost as good as the 747-400!

[Daus]

That's going to leave a mark on either BAE or EADS

That mark is largely going to hit EADS. I'm not 100% sure but I think BAE's has a locked in valuation benchmarked few months back when they annouced their intent to sell. A double whammy for EADS.

[agere_contra]

Nice picture. BTW, what is that toy car doing in shot? :0)

[phantomworker]

With the failure of the fuselage on Boeing's 787, Boeing won't be far behind.

Not really a failure though. The bubble in the composite fuselage was known and anticipated. They also chose to announce the findings and not cover it up.

[Comstock1]

I haven't paid close attention, but I thought that the future buyback from BAE was a done deal. The market sure isn't punishing BAE the way it is shredding EADS.
Not that I really care...

[Comstock1]

I got the impression from a Freeper whose name I have forgotten that there were several fuselage bodies that were tested and that the bubbles were from only one of them. I hope this is true.