Airbus Sees 3,700 Jobs at Risk at Troubled Plane Programs - WSJ - 0 views
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European plane maker Airbus EADSY -0.02% SE said Wednesday it plans to cut production of its flagship A380 superjumbo and A400M military transport aircraft, threatening thousands of jobs, though overall strong demand for airliners may mitigate staff cuts.
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But Airbus’s A380 has missed out on the boom. Airlines worry that they won’t be able to fill an aircraft that seats more than 500 passengers. Plus, the superjumbo carries a price tag of $445.6 million before typical discounts,
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Emirates Airline, the world’s largest by international traffic, in February signed an order for 20 A380s with an option for 16 more.
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The deal allows Airbus to sustain annual production at six planes, which it described as the minimum at which losses are manageable.
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The bleak outlook for the A380 was punctuated late last year when the first of the jets put into operation was placed in long-term storage after Singapore Airlines opted not to extend an initial lease period. The carrier is the second biggest A380 customer, having ordered 24.
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Boeing also has struggled to win orders for its biggest plane, the 747-8, leading to production cuts. For Airbus, the A400M cutback comes after years during which the company struggled to get the military transport out the door and develop some of the promised technical features. Airbus said it would build 15 of the planes this year, after delivering 19 last year. It plans to build 11 of the planes in 2019, and eight annually thereafter.
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Airbus Chief Financial Officer Harald Wilhelm said last month said that lowering build rates for the A400M and the A380 would keep them in production and buy time to secure further deals.