Posted: Thu 11th Dec 2014

Airbus shares tumble amid investor fears the company could ditch the A380 program by 2018

This article is old - Published: Thursday, Dec 11th, 2014

US based media reports suggesting Airbus may discontinue its A380 superjumbo as soon as 2018, have hit shares over the last twenty four hours.

Airbus shares fell 10.4% to €43.20 (£34.32)on Wednesday, marking their worst one-day fall for six years and wiping €3.9bn off the company’s value, shares continued the slide today – Thursday 11 December.

Screenshot from 2014-12-11 16:47:47

snapshot from Google Stock Ticker @16:48

Airbus failed to find any new airline’s to buy the A380 aircraft this year, the wings of the jet are made at the Airbus Broughton factory.

Chief Financial Officer Harald Wilhelm told a meeting of investors in London the company would either offer new engines to make the A380 more attractive in terms of efficiency or discontinue the program altogether.

Investors were told Airbus will break even on the plane in 2015, 2016 and 2017, but the outlook for for 2018 isn’t as good.

It is the first admission from the company that they may have misjudged the market for a super jumbo, Boeing’s 787 Dreamliner despite a troubled start is racking up the orders as fuel efficiency becomes the priority for long haul operators looking to invest.

The A380 made its first flight in April 2005 entering commercial service in October 2007 with Singapore Airlines and cost around $25bn to develop.

Airbus head of corporate communications Rainer Ohler moved quickly to smother the reports saying: 

“The entire Airbus top management continues to believe strongly in the market prospects of the A380, but any investment by Airbus requires a sound business case, which we will continue to study,”

The following orders have been placed and deliveries made, according to Airbus, as of 30 November 2014:

Customer Entry into service Firm Orders Options Deliveries EA RR Press Release
Air Austral 2 *
Air France 2009 12 2 10 * [3]
Amedeo 2016 20 [4]
Asiana Airlines 2014 6 2 * [5][6][7]
British Airways 2013 12 7 8 * [8]
China Southern Airlines 2011 5 5 * [9]
Emirates 2008 140 55 90 [10]
Etihad Airways 2014 10 5 * [11]
Unidentified Customer(s) 10
Kingdom Holding Company 1 *
Korean Air 2011 10 10 * [12]
Lufthansa 2010 14 12 * [13]
Malaysia Airlines 2012 6 6 * [14]
Qantas 2008 20 4 12 * [15]
Qatar Airways 2014 10 3 2 * [16][17]
Singapore Airlines 2007 24 1 19 * [18]
Thai Airways International 2012 6 6 * [19]
Transaero Airlines 2015 4 * [20]
Virgin Atlantic 2018 6 6 * [21][22]
Totals 318 28 147 148 106

Wikipedia
*EA =Engine Alliance
*RR =Rolls Royce

 

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