Airbus executive says considering cuts to A380
production, still undecided
Send a link to a friend
 [December 14, 2017]
By Jamie Freed
SINGAPORE (Reuters) - Airbus SE is
considering cutting production of its A380 superjumbo to six or seven
planes a year, but has made no final decision on the matter, a top
executive said on Thursday amid growing question marks over the future
of the double-decker jet.
The A380 has battled against sluggish sales, squeezed by smaller, more
efficient twin-engined jets. Airbus has previously announced plans to
lower output to 12 aircraft in 2018 and eight in 2019, compared with an
annual peak of 30.
"We believe we can produce this aircraft at 6-7 a year in an industrial
way," Airbus Chief Operating Officer Fabrice Bregier told Reuters after
the first Singapore Airlines Ltd <SIAL.SI> A380 featuring a new cabin
configuration landed in Singapore.
"It is a way to be able to go through I would say are low tide years...
The A380 will find its way progressively."
The comments come ahead of a board meeting on Thursday where directors
are seeking to contain damage from international fraud investigations
over commercial and military sales, while getting a grip on what could
become a chain reaction of departures, people familiar with the matter
have said.
Bregier, who dismissed on Wednesday a report in France's La Tribune
newspaper that he had agreed to leave Airbus in February next year, said
on Thursday he hoped to remain at the firm.
"You can see I am quite relaxed about it," he said. "I don't need to be
outside the door to listen to what will happen but I think they were
clear that all of this buzz in the French press is probably a bit
premature."
[to top of second column] |
Airbus Chief Operating Officer Fabrice Bregier and Singapore
Airlines CEO Goh Choon Phong pose for photos before a tour of
Singapore Airlines' A380 fitted with newly launched cabin products
at Changi Airport in Singapore December 14, 2017. REUTERS/Edgar Su
Festering animosity between Bregier, who is not a board member, and CEO Tom
Enders boiled over earlier this year in a row over who should control the
powerful jet sales department.
Analysts say ongoing negotiations over a deal with carrier Emirates will be
decisive for the future of the A380.
Emirates, which held off signing an order for an estimated 36 aircraft at last
month's Dubai Airshow, wants guarantees Airbus will produce the A380 for the
next 10 years.
Reducing output to six a year would help to bridge that period and support key
second-hand values while Airbus looks for other buyers, but could leave the
program losing money for at least part of the period.
Following a clampdown on costs, Airbus has said the A380 can break even at
production levels of 20 a year, while Bregier has previously said he is pushing
the breakeven level as low as possible to sustain low production.
(This version of the story corrects paragraph 2 to read "eight in 2019" instead
of "eight in 2018")
(Reporting by Jamie Freed; Writing by Adam Jourdan; Editing by Simon
Cameron-Moore and Edwina Gibbs)
[© 2017 Thomson Reuters. All rights
reserved.] Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
