Another Airbus Contract Cancelled (EADSY, BA)

May 7, 2012 by Paul Ausick

The problem of small cracks in the wings of the Airbus A380 have been well-publicized and led to the company being named to our list of the nine most damaged brands in the US. Now the problems seem to be seeping out and affecting more models.

Airbus and its parent European Aeronautic Defense and Space Co. NV (OTC: EADSY.PK) reported today that the aircraft maker booked just 11 new orders in April — and those orders were taken for the A350, a plane comparable to the 777 from Boeing Co. (NYSE: BA). The A380 is Airbus’s late competitor to the Boeing 747.

The latest contract cancellation for seven A350s came from Abu Dhabi’s state-owned airlines Etihad. Full deliveries of the aircraft were to begin in 2014, but the schedule has been delayed and Etihad was not scheduled to receive the planes until 2017. No reason was given for the cancellation, but the recent problems with the A380 cannot have fostered confidence in the company.

Orders for new planes at both Airbus and Boeing are soft so far this year. Airbus claims net new orders for the first four months of 2012 of 112 planes. Boeing claims net new orders of 415 planes so far in 2012. All but two of Boeing’s new orders are for the venerable 737. Boeing’s new plane, the 787 Dreamliner, has a negative net total new orders so far this year.

Paul Ausick

Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE

Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here
you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.


Click here
to match with up to 3 financial pros who would be excited to help you make financial decisions.