Airbus has “worst year ever”
Thanks to product development delays with the A380, order cancellations, customer compensation for delayed deliveries, etc., etc., Airbus lost $1.01 billion in its fourth quarter from October-December 2006:
“It was the worst year for Airbus in its life,” said Louis Gallois, also the CEO of Airbus.
Gallois cited the multiple and major delays to the A380 superjumbo jet that caused EADS to lose $1.01 billion in the October-December period, after making about $530 million in the year-earlier quarter.
“We had big problems, as everyone knows,” co-CEO Tom Enders added. “This company needs more innovation, more focused innovation.”
Enders and Gallois said that the problems at Airbus would continue to be felt through the rest of this year, warning that though deliveries will reach as many as 450 planes, the financial pain will be considerable.
“We will deliver between 440 and 450 airplanes, but Airbus will display another substantial loss in 2007 because of the charges for the [restructuring] program and further costs to support the A380,” Gallois said.
The restructuring plan involves shedding 10,000 jobs, which has drawn strong opposition in France and Germany.
And things are only going to get tougher as it appears that manufacturing giant China is working to begin its own line of commercial aircraft:
The ambitious target reflects rising confidence among officials and in the government-funded aircraft industry following China’s apparent success in developing its first commercial jet aircraft, the midsize ARJ-21 regional jet, the first of which is due to fly next year.
With China expected to buy 2,230 new planes between now and 2025, the government has fast-tracked development plans to ensure that its own companies grab a share.
The large-aircraft project is underpinned by strong Chinese economic growth, technological advances and a brawny manufacturing base, Liu Daxiang, of China Aviation Industry Corporation I, or AVIC I, was quoted as saying by the official Xinhua press agency.
“We are now fairly well conditioned for making large aircraft,” said Liu, deputy head of the company’s science and technology development department, and a delegate to the national legislature meeting this month in Beijing.
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