Thu, Sep. 22, 3:57 PM
- Airbus' (OTCPK:EADSF, OTCPK:EADSY) plan to cut costs and streamline operations will significantly affect the company’s headcount, CEO Tom Enders has warned in a letter to employees.
- Airbus, which had 137K workers worldwide in July, has committed to reducing production of the A380 superjumbo amid a sales decline, and is working on “necessary adaptations” to cope with shrinking helicopter demand, Enders said, adding that "the effects on workforce and cost base in both cases are not negligible."
- While Enders offered no specifics on the cuts, he said there would be no “massive reductions” in headcount and that the plan will be far less severe than one introduced in 2007 which sought to eliminate 10K jobs.
Thu, Sep. 22, 11:04 AM
- U.S. Trade Representative Michael Froman has declared "sweeping victory" in a long-running, multibillion-dollar trade dispute with the EU over subsidies to Airbus (OTCPK:EADSY), and urged the union to halt all subsidies "immediately."
- The U.S. said subsidized financing to Airbus amounted to almost $22B, and signaled it could seek to impose at least $7B in retaliatory tariffs.
- Sources told WSJ that the WTO in a future ruling is expected to find the U.S. similarly didn't sufficiently address concerns about subsidies benefiting Boeing (BA +1.1%).
Wed, Sep. 21, 10:04 AM| Wed, Sep. 21, 10:04 AM | 1 Comment
Tue, Sep. 20, 7:25 AM
- Fabrice Bregier, who runs Airbus' (OTCPK:EADSY) planemaking arm, will get an additional job as chief operating officer of the parent company, Bloomberg reports.
- The move is aimed at tying the group's biggest and most profitable division more closely to its parent, while making Bregier the effective deputy to CEO Tom Enders.
Mon, Sep. 19, 12:58 PM
- Airbus (OTCPK:EADSF, OTCPK:EADSY) says it still expects to meet full-year delivery targets of at least 650 aircraft, the company tells WSJ.
- The statement comes after engine supplier United Technologies warned on Friday that its Pratt & Whitney aircraft engine unit is likely to ship 150 of its geared turbofan commercial jet engines rather than its previous target of 200 deliveries; Airbus uses the Pratt & Whitney engine to power the new A320neo narrow-body.
- Jefferies analyst Sandy Morris says the engine situation could affect delivery of ~12 A320neo planes, but the financial loss to Airbus from lower deliveries could be limited since early planes sold usually come with big discounts; Airbus says it will meet its delivery target by delivering more of the older version of the A320.
Mon, Sep. 19, 11:03 AM
- Iran has reduced the number of airplanes it plans to buy from French and U.S. planemakers amid delays in American regulatory approvals, Reuters reports.
- The country now expects to purchase 112 jets from Airbus (OTCPK:EADSY +0.3%), decreasing its order by six planes, and may see its deal with Boeing (BA +1%) clipped by one jet to 108 aircraft.
Mon, Sep. 19, 2:27 AM
- Airbus (OTCPK:EADSY) is preparing to launch a new restructuring and cost-cutting plan next month to offset expensive delays to aircraft programs and minimize losses on the A380.
- The restructuring will tighten CEO Tom Enders' grip on the civil aerospace division, eliminate duplication of certain functions and may include job cuts across the group.
- Although the plans have not yet been finalized, talks with unions are expected to begin soon.
Mon, Sep. 19, 2:13 AM
- Although approval had been expected by the end of August, Iran has been told the U.S. will issue export licenses for the purchase of more than 200 Boeing (NYSE:BA) and Airbus (OTCPK:EADSY) aircraft by the end of September, according to Deputy Roads and Urban Development Minister Asghar Fakhrieh Kashan.
- The U.S. Treasury can veto sales of modern aircraft to Iran, including non-U.S. ones, due to the high proportion of U.S. parts.
Thu, Sep. 15, 8:05 AM
Wed, Sep. 14, 11:17 AM
- Singapore Airlines says it will not renew the lease on its first Airbus (OTCPK:EADSF, OTCPK:EADSY) A380 when it expires in October 2017, and suggests that it may walk away from more of the superjumbo jets.
- Initial production jets are generally less popular with airlines, as they are heavier and often come with problems as manufacturers work out the kinks, but the decision by Singapore Airlines' decision will put at least one second-hand plane on the market, potentially weakening already weak demand for new A380s.
- Brendan Sobie, an analyst at CAPA Center for Aviation, expects Singapore Airlines to return all five of the early A380 jets in its fleet.
Fri, Sep. 9, 8:23 AM
- Malaysia Airlines is in talks with Asian carriers about offloading six A380 jets because the giant double-deckers are no longer needed in its fleet.
- The company is also negotiating with Airbus (OTCPK:EADSY) to add 90 more seats to each of the superjumbos in order to make them more marketable, while retaining the ability to operate the aircraft in a two or three class configuration.
- If direct buyers aren't found, Malaysian is prepared to offer the planes for lease with access to its A380 simulator, or complete with pilots and cabin crew.
Thu, Sep. 8, 3:23 PM
- Boeing (BA -0.1%) is studying two designs for its "Max 10," a potential stretch of its largest 737 aimed at making up ground on Airbus' (OTCPK:EADSF, OTCPK:EADSY) longest single-aisle jet, Bloomberg reports.
- Boeing reportedly is considering a simpler lengthening of the 737 Max 9 that would offer much of the range and payload of the Airbus A321neo, said the people, as well as an alternative, more elaborate revamp that would feature the larger engines developed for the Airbus jet.
- Even the more straightforward redesign, which would rely on upgraded engines developed for the Max family, would not enter the market until early 2020; meanwhile, Airbus already has received nearly 1,300 orders for the A321neo, with a long-range version scheduled to begin commercial operation in 2019.
Tue, Sep. 6, 3:54 AM
- Airbus (OTCPK:EADSY) orders are taking off with three airlines checking in for new aircraft.
- VietJet has ordered 20 more planes valued at over $2.4B, while JetStar Pacific and Vietnam Airlines said they would buy 10 new A320s and 10 A350s, respectively.
- That leaves Airbus and Boeing neck-and-neck in the year-to-date order race although overall demand is down on an annual basis due to lower oil prices.
Wed, Aug. 31, 8:27 AM
Wed, Aug. 31, 8:03 AM
- Qatar Airways is poised to make a "large" jetliner purchase "soon," CEO Akbar Al Baker said in Doha, adding to a backlog of more than 340 outstanding orders for Boeing (NYSE:BA) and Airbus (OTCPK:EADSY).
- The carrier's order book includes 80 A320neos - a deal that may be at risk after Al Baker declined to take delivery of the first planes because of engine cooling issues, saying he was exploring the option of switching to the 737 Max.
Tue, Aug. 30, 5:10 PM
- Airbus (EADSF]], OTCPK:EADSY) delivered more aircraft in August than for the same period in any previous year, its top planemaking executive tells Reuters, a feat that would improve its chances of meeting 2016 targets after earlier delays in receiving parts.
- Fabrice Bregier does not offer numbers for total deliveries but says Airbus had hit a crucial target of six A350 deliveries this month.
- The company's previous busiest August was in 2013, when it passed 47 aircraft to customers; for FY 2016, it has targeted at least 650 deliveries, up 2.4% Y/Y.
- Problems with supplies of cabin equipment had slowed deliveries of Europe's newest long-haul jet, the A350, leaving Airbus well short of its full-year target of 50 A350 deliveries with just 15 handed over to customers by the end of July.