Airbus struggles after crisis year

PARIS – Airbus, poised to fall behind US rival Boeing Co. in orders for the first time in six years, must be wishing 2006 was already history.

But for the European planemaker and its parent European Aeronautic Defence and Space Co., the coming year may not be much easier. Since new delays to the 555-seater A380 superjumbo came to light in June, EADS and Airbus have lost three CEOs, one A380 customer, a big potential order from another client and US$6,4 billion in forecast profits.EADS shares have fallen about 25 percent since the start of the year.The quadrupling of the A380 production delay to two years prompted FedEx to cancel its 10 orders and was a likely factor in Lufthansa’s Dec.6 decision to buy 20 747s instead.The threat of customer defections still hangs over Toulouse, France-based Airbus as it enters the New Year – a prospect that chief operating officer John Leahy is keen to play down.”Most of the customers I’ve talked to are annoyed, they’re rightfully upset,” Leahy said at a news conference earlier this month.”But they aren’t rushing for the doors.”Against this backdrop, the decision by US and European aviation authorities to certify the A380 for commercial service, 10 months before the first plane is due for delivery to Singapore Airlines, was a small mercy.Nampa-APSince new delays to the 555-seater A380 superjumbo came to light in June, EADS and Airbus have lost three CEOs, one A380 customer, a big potential order from another client and US$6,4 billion in forecast profits.EADS shares have fallen about 25 percent since the start of the year.The quadrupling of the A380 production delay to two years prompted FedEx to cancel its 10 orders and was a likely factor in Lufthansa’s Dec.6 decision to buy 20 747s instead.The threat of customer defections still hangs over Toulouse, France-based Airbus as it enters the New Year – a prospect that chief operating officer John Leahy is keen to play down.”Most of the customers I’ve talked to are annoyed, they’re rightfully upset,” Leahy said at a news conference earlier this month.”But they aren’t rushing for the doors.”Against this backdrop, the decision by US and European aviation authorities to certify the A380 for commercial service, 10 months before the first plane is due for delivery to Singapore Airlines, was a small mercy.Nampa-AP