Airbus anticipates severe losses on first A380 deliveries
Leaked minutes of an audit commitee meeting of Airbus' parent EADS show the company is facing severe losses on the first of the delayed A380s because of compensation demanded by airlines.
The leak comes after Airbus announced it would significantly delay deliveries of its A380 because of wiring problems - the second time deliveries have been delayed.
With delivery of the A380 now delayed by more than a year, the affected airlines have demanded that Airbus compensate them for the second time.
The leaked minutes reveal that Airbus chief executive Gustav Humbert told the May 12 Audit Committee that the first two A380s would be delivered to Singapore Airlines at a loss, and then admitted the next three could also be sold at a loss.
It is believed that EADS CO and CEO Noel Forgeard, who headed Airbus until his promotion a year ago, also told the meeting that he had asked the Airbus team if they could guarantee that some of the other A380 contracts, including aircraft to be delivered to Qantas, would not be at loss, but he did not obtain a clear answer.
According to rerports, an EADS spokesman expressed dismay at the document being leaked but declined to comment further.
Airbus has orders for 159 A380s on its books, but some clients have already said they might cancel.
EADS said that 250 of 300 of the $US300 million aircraft need to be sold to recoup costs.
But some analysts believe the discounts Airbus offered to its first customers were too deep, which means more aircraft now need to be sold.
Reports in the UK business press today say Noël Forgeard, co-chief executive of EADS, the majority owner of Airbus, is fighting to save his job over the delays.
He is being questioned by French deputies over his exercise in mid-March of EADS options which earned him millions of euros - before the costly A380 delays were announced.
With permission from Travelmole
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