Airbus Ends A340 Program

It hasn't been the best news cycle for Airbus, which said Thursday that while pre-Final Assembly Line (FAL) activities for the A350 XWB composite airliner have started, production of the airplane will be delayed due to the late availability of some key composite and detailed parts. The start of the FAL is now scheduled for the first quarter of 2012. Entry into service is now rescheduled to first half  of 2014 to "ensure smooth production ramp-up capability."

Eventual A350 XWB Assembly Line

“It is our top priority to reach the highest levels of part-readiness before aircraft sections enter our Final Assembly Line in Toulouse. In this context the maturity of components will be further enhanced to ensure smooth ramp up capability,” said Didier Evrard, Head of the A350 XWB Program.

This is the second time Airbus has pushed back the delivery of its composite airliner designed to compete with Boeing's 787, which entered service last month after three years of delays. The Financial Times reports that the XWB is now a full year behind schedule. Boeing, for its part, may be able to work the XWB delay to its advantage. With the Dreamliner flying, albeit not without at least one technical glitch already reported on a scheduled flight, aviation analyst Scott Hamilton told Reuters that the U.S. company may gain a little breathing room in getting the 787 out to customers.

Meanwhile, multiple media sources are reporting that Airbus has announced the end of its A340 program. In its earnings statement released Thursday, EADS said ending the program will lead to savings of $261 million.

While EADS did not say why it was cancelling the program, analysts told Bloomberg that the four-engine A340 was not able to compete with a similar-sized but more fuel-efficient twin-engine B777, and the order book simply dried up. Changes in ETOPS rules allowed twin-engine aircraft to fly routes that had previously been the exclusive domain of four-engine airplanes.

The A340 is now the shortest-lived airliner program in Airbus history, having entered service in 1993. Airbus said in Thursday's earnings report that it sold no A340s in the past two years. Boeing, meanwhile, is boosting production of the B777.

FMI: www.airbus.com