Airbus recalculates its superjumbo math

19th October 2006, Comments 0 comments

PARIS, Oct 19, 2006 (AFP) - Delays to the Airbus A380 superjumbo jet program mean that it will now have to sell 420 planes to break even compared with a previous estimate of 270, the parent group EADS said Thursday.

PARIS, Oct 19, 2006 (AFP) - Delays to the Airbus A380 superjumbo jet program mean that it will now have to sell 420 planes to break even compared with a previous estimate of 270, the parent group EADS said Thursday.

The plane has an average catalogue price of EUR 244 million and 159 firm orders have been received so far from 16 airlines.

The negative financial impact of the delays, which now stand at almost two years, will lead to a loss of earnings totalling EUR 6.3 billion between now and 2010, the European Aeronautics Defence and Space Company said.

This year, the delays would trim EUR 1.1 billion from core profits, expressed as earnings before interest and tax (EBIT), EADS added.

In an interview with the Wall Street Journal Europe published earlier in the day, EADS co-chairman Thomas Enders said Airbus would close factories and shed jobs if necessary, even in the face of objections by unions and politicians, to turn Airbus around.

"Everything is on the table," the newspaper quoted Enders as saying.

EADS directors, he added, were "dedicated to the far-reaching renewal that Airbus has to go through".

A recently unveiled restructuring plan for Airbus, which has been hit by the delays to its flagship A380 program and doubts over another key model, is expected to result in job cuts, factory consolidation and production of parts outside Europe.

But trade unions and some politicians in France and Germany have warned of the possible consequences, leading many observers to wonder if political meddling could derail the restructuring.

Enders told the Wall Street Journal, however, that "background noise" from officials would not affect decisions by Airbus or EADS.

Copyright AFP

Subject: French news

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