Airbus CFO’s A380 Comment Sparks Controversy

Widespread angry reactions followed after a top Airbus official hinted at stopping Airbus A380 super jumbo from 2018 because of poor sales.

Airbus Chief financial officer Harald Wilhelm started the speculation frenzy when reports emerged that he had told investors Airbus might have to discontinue the plane unless it can invest in improvements to make it more attractive to customers. Although analysts and rivals have suggested it for some time, it was the first time the manufacturer had talked publicly about the humiliating possibility.

The prospect of the European plane-maker sent shockwaves through the aviation industry and triggered a major fall in the company’s share price.

He said the A380 manufacturing programme would break even next year but not into 2018 without new engine types. That decision on the engine has to be made soon, because it would normally take about four years – and $2bn – to develop.

Sales of the A380 have been sluggish because of a limit to the number of routes where a 500-seater is needed. No airline has ordered A380s at all this year, while in July, the Japanese carrier Skymark Airlines cancelled the six it had ordered.

Emirates airline president Sir Tim Clark said yesterday he had protested to Airbus about the comments. His airline has 56 A380s in its fleet, according to its website, and has 140 more on order. Emirates is by far the most committed to the model.

Airbus management tried to undo the damage its finance director’s words had caused as they watched shares in the company fall a further 4.5 per cent on top of the previous day’s 10 per cent caused by a profit warning.