Company Hints At Delays For A350XWB And A400M

Can it possibly get worse at Airbus? Parent company EADS has seen its share of troubles of late. Now leadership is hinting at even more problems.

Delays with the A380 program at Airbus have caused shakeups with company leadership. Stock selling scandals, a flagship program delayed for two years and two new CEOs within a few months are all contributing to the company hemorrhaging money -- nearly $6 billion.

Stiff competition with Boeing and a weak dollar are adding to the company's woes.

Airbus accepted a two-year delay in the A350 program when it announced the XWB variant at Farnborough this year. The XWB is the company's answer to Boeing's 787 Dreamliner. Now, EADS is says even more delays are likely with that program -- and with its A400M military transport program as well.

The A400M is an airlift aircraft Airbus hopes to pit against Lockheed's C-130 Hercules. NPR reports that program is facing cost increases.

EADS co-Chairmen Manfred Bischoff and Arnoud Lagardere say the company is uncertain of Airbus' ability to launch the A350XWB right now. In a joint interview with Les Echos, they said they intend to make a decision in the next few weeks.

Bischoff said, "All of the shareholders are totally behind this program. But before we launch it, we must assure ourselves that we can do it, both technically and financially. That is what we are in the process of examining. We will make a decision in the coming weeks."

According to Lagardere, the A350 program is necessary because of Boeing's 787, but, "we must first bring together all of the technical and financial conditions for its success."

Earlier this week, ANN reported Airbus' loss of its CEO Christian Streiff amid disagreements with EADS over Streiff's proposed restructuring plan. Streiff stepped down after less than 3 months as Airbus' CEO when it seemed EADS would bow to political pressure from countries sure to lose jobs under his plan.

FMI: www.eads.com