More News About Airbus's Troubles with the A380

Airbus is having trouble with their new A380, and the media seems to be enjoying the bit of good news for Boeing. The engineering difficulties always add up on a program one it has a little maturity.

Bet on Huge Plane Trips Up Airbus
After Surpassing Boeing, European Competitor Could Fall Back for Years; Midsize Jetliner Also Stumbles
The Wall Street Journal 06/15/2006
Authors: J. Lynn Lunsford and Daniel Michaels
(Copyright (c) 2006, Dow Jones & Company, Inc.)
Airbus's high-stakes bet on a giant plane is running into serious trouble, creating a major crunch for one of Europe's industrial titans as it battles Boeing Co. for dominance of the passenger-jet market.

Airbus announced Tuesday that deliveries of its double-decker A380, designed to be the world's largest passenger jet, would face a further six months of delays because of the unexpected complexity of wiring the aircraft. Shares in European Aeronautic Defence & Space Co., which owns 80% of Airbus, fell 26% yesterday as investors panicked about the A380 and other bad news. EADS said the delay would shave $2.5 billion in operating profit between 2007 and 2010.

Before yesterday, the A380 had already been at least six months behind. EADS's stock is now down by a third for the year.

Yesterday, Singapore Airlines also announced it was ordering 20 of Boeing's 787 "Dreamliner" jets in a deal valued at $4.52 billion at list prices. The order came as Airbus was fleshing out details of size, range and economics of its planned A350, which has been criticized by customers, including Singapore Airlines, for falling short of the promised efficiency and comfort of the 787. Boeing's stock jumped $5.03, or 6.5%, to $82 in 4 p.m. composite trading on the New York Stock Exchange.

The setbacks at one of Europe's biggest exporters and employers is changing the balance of power in a marketplace that is crucial to global trade. For Boeing, which three years ago was criticized by customers for being out of touch with passenger needs, it marks a major reversal of fortune just as a new generation of airplanes is being created that could shape the race for years.

Tags: Aerospace | Business | Engineering