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