🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

WRAPUP 1-Airbus seen trimming A380 goal, frets over forex

Published 09/28/2009, 06:00 PM
Updated 09/28/2009, 06:03 PM
AIR
-
EXAH
-
TGT
-
SIAL
-

* Airbus may deliver 13 A380s in 2009 vs targeted 14

* EADS CEO worried about dollar weakness vs euro

* Vietnam Airlines upset about Boeing 787 delays (Recasts, combines previous items)

By Tim Hepher and Matthias Blamont

PARIS, Sept 28 (Reuters) - European planemaker Airbus looked set to cut its forecast for A380 superjumbo deliveries in 2009 to 13 aircraft, from its most recent target of 14 planes, after a deal with one of its buyers.

The head of Airbus parent EADS told Reuters on Monday that the move followed talks with Singapore Airlines , one of three carriers operating the world's largest airliner. Deliveries to airlines have already been delayed half a dozen times.

The reason for the latest delay was not immediately clear.

After failing to deliver A380s on time due to wiring difficulties, Airbus has most recently been urged to reschedule deliveries by airlines worried about a sharp drop in traffic.

"We are discussing with Singapore Airlines the possibility of delivering the last aircraft (from the 2009 delivery schedule) in January next year," EADS Chief Executive Louis Gallois told Reuters on the sidelines of a company event.

"If they take it in January instead of December then we will deliver 13 in 2009," he added.

Sources familiar with the matter said earlier that Airbus was expected to deliver 13 A380s in 2009, one fewer than its most recent delivery target. French newspaper Les Echos reported a similar cut in its early Tuesday edition.

Airbus declined to comment.

The expected new A380 schedule was a further reminder of the swaying fortunes of Airbus and rival Boeing as the industry rides out the worst recession in decades. Airlines are predicted by their lobby group to lose $11 billion this year.

EURO STRENGTH 'CLOSE TO LIMIT'

EADS is additionally concerned about the strength of the euro as it competes with Boeing for sales in dollars.

"At the current level we are close to the limit. Beyond that it will become difficult," Gallois said.

The euro fetched $1.4616 late on Monday.

Airbus, which makes up the bulk of EADS revenues and profits, is recovering from an industrial and financial crisis in 2006 and 2007, triggered by problems in wiring the giant A380 airliners on a scale needed to ensure smooth deliveries.

Now it is Boeing's turn to face disgruntled customers as production of its mid-sized 787 Dreamliner also slips two years behind schedule.

The head of Vietnam Airlines -- a customer of both planemakers -- became the latest buyer to put pressure on Boeing, saying he had not decided whether to cancel any 787s.

Vietnam Airlines has eight of the next-generation jets on order and its leasing affiliate, Vietnam Aircraft Leasing Company, has ordered a further eight.

"We are not happy about the constant delays. It affects our business plan," Vietnam Airlines President and CEO Pham Ngoc Minh told Reuters at the EADS event, where he was a guest.

"We expected to get our planes in 2009, then 2010, and now nobody can confirm to us which is the exact delivery date. I can be patient but it gives us a lot of headaches."

The head of Oman Air last week hinted at possible 787 cancellations and said a decision would be made after its maiden flight, due this year. [ID:nLO146307]

The airline has ordered 787s through a deal with Kuwaiti lessor Alafco .

While dealing with their respective airliner production hiccups, Airbus and Boeing are preparing to compete again in a contest to build refueling tankers for the U.S. Air Force.

Gallois told reporters he remained confident of Airbus's ability to compete after winning an earlier tender that was successfully challenged by Boeing last year. Boeing said last week said it may offer a choice of aircraft.

EADS is bidding in a team led by its U.S. partner Northrop Grumman for the tanker contract that one U.S. official now predicts could be worth up to $50 billion. (Editing by Marcel Michelson, Tim Dobbyn)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.