EADS Warns Investors | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Airborne-Unlimited-10.28.24

Airborne-NextGen-10.29.24

Airborne-Unlimited-10.30.24

Airborne-Unlimited-10.24.24

Airborne-Unlimited-10.25.24

Fri, Oct 20, 2006

EADS Warns Investors

Confirms Need For Higher A380 Break-Even Sales

EADS CFO Andreas Sperl warned potential investors Thursday rumors of a higher break-even target for the A380 program are true. How much higher? Financial Times reports 55-percent.

The troubled A380 program is Airbus' biggest thorn right now. Three delays (it's now 2 years behind schedule), wiring issues, senior management shakeups, angry customers, a weakening dollar and dwindling potential returns have all conspired to finally convince EADS a major restructuring of Airbus is the only way to save the program.

When Airbus originally pitched EADS on the idea of the A380, the company said it needed sell only 250 aircraft to break even. Armed with a market forecast claiming deliveries of 1,250 aircraft with more than 450 seats over the next 20 years, Airbus sold EADS on the deal. Company financials are still based on selling just over 750 of the superjumbos over the A380 program's lifetime.

Previous financial forecasts published in 2005 estimated the break-even sales number for the A380 at 270 aircraft. At a meeting with investors in Hamburg Germany, Sperl bumped that estimate to 420.

The group Sperl spoke to represents a number of German banks. EADS wants them to buy the 7.5% stake in the company that it believes DaimlerChrysler will sell as early as next year.

Although not a done deal, maintaining the status quo vis-a-vis French-German interests will keep pressure on management to remain balanced as jobs are cut during the coming Airbus restructuring. The German government is obviously keen on a successful sale of that 7.5% to German investors.

UK jobs are also at stake during Airbus' restructuring and EADS' co-CEOs plan to meet with UK trade officials next week to quell rising fears. Airbus reportedly plans to cut costs during the restructuring by nearly $2.5 billion a year by 2010.

Airbus has 159 confirmed orders for the A380. As might be expected, new orders have dropped off almost entirely since rumors of program delays hit the streets earlier this year.

FMI: www.eads.com

Advertisement

More News

Senator Pushes FAA to Accelerate Rocket Launch Licensing

States That Current Process is Damaging National Aerospace Development US Senator Jerry Morgan is pushing the FAA to speed up the process for rocket launch licensing. He argues tha>[...]

Classic Aero-TV: RJ Gritter - Part of Aviation’s Bright New Future

From 2015 (YouTube Edition): Model Aviator Aims For Full-Scale Career While at the 2015 Indoor Electric RC Festival, referred to as eFest, ANN CEO and Editor-In-Chief, Jim Campbell>[...]

Aero-FAQ: Dave Juwel's Aviation Marketing Stories -- ITBOA BNITBOB

Dave Juwel's Aviation Marketing Stories ITBOA BNITBOB ... what does that mean? It's not gibberish, it's a lengthy acronym for "In The Business Of Aviation ... But Not In The Busine>[...]

ANN's Daily Aero-Linx (10.27.24)

Aero Linx: Cardinal Flyers Online The Cardinal Flyers Online Web site was created and is maintained by me, Keith Peterson. My wife Debbie and I have owned a 1976 RG since 1985. Wit>[...]

ANN's Daily Aero-Term (10.27.24): Clearance Void If Not Off By (Time)

Clearance Void If Not Off By (Time) Used by ATC to advise an aircraft that the departure release is automatically canceled if takeoff is not made prior to a specified time. The exp>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2024 Web Development & Design by Pauli Systems, LC