The outlook for the Airbus A380 super jumbo looks even bleaker with the European conglomerate officially stating that it needs to sell 420 A380s in order for the programme to begin to make money. In a presentation to analysts in Hamburg last week, the company, which is about to be cast off by BAE Systems, confirmed 159 firm orders and admitted that last year”s forecast of 270 aircraft to break even is proving horrendously inaccurate.
The aircraft is now at least two years late with customer airlines making public their dissatisfaction and their need for some sort of recompense. At the present time no orders have been cancelled, nor any received for several years.
Airbus has launched a cost cutting programme that has sparked fears from its many sub assembly plants all over Europe concerned over factory closures. In the UK some 13,000 people are said to be involved with the A380. Completion of the BAE Systems sale of its 20% holding to EADS”Airbus” parent company”is due in a few weeks time. It will give rise to concern particularly at the Bristol and Chester plants.
Presently these are the sole wing suppliers to Airbus but with the possible situation of having no British representation on the EADS board, future commitments might well be made to continental factories. New President and Chief Executive Officer of Airbus Louis Gallois, is moving quickly to try and restore confidence in the company.
Whilst he came to EADS as joint CEO in July 2006 after a ten year spell at French Railways he has however vast experience in the aviation business. Gallois was head of both SNECMA, the engine manufacturer, and Aerospatiale (now part of EADS) in the late 80's and 90's.