Airbus has again delayed delivery of selected A380 superjumbo jets, saying the company's transition to automated production is behind schedule.
Airbus now expects to deliver 12 A380 planes in 2008, down from 13, and 21 planes in 2009, down from 25, the company announced Tuesday.
Promoted as the world's most economical, large aircraft, the A380 is about two years behind schedule. The A380 will seat 525 passengers in a normal configuration, at least 50-120 seats more than its chief competition, Boeing's (NYSE: BA) 747, the wide-body industry standard.
In Europe, shares of Airbus's parent EADS were virtually unchanged on the news, down just 2 euro cents to 12.72 euros in afternoon trading. Boeing's shares gained five cents to $84.87.
Impact on orders
Airbus' Chief Salesman John Leahy told The Associated Press Tuesday he doesn't expect today's delay to create additional order cancellations for the A380. Independent stock analyst C. Leonard Bauer isn't so sure.
"Trans-ocean carriers, like Japan's All Nippon Airways, will be patient because the A380 is an integral part of their long-route strategy and because long hauls comprise a high percentage of their routes," Bauer said. "But other airlines, such as [Middle East airline] Emirates may begin to grow impatient." Bauer added that he doesn't have a rating on nor own shares of Boeing or Airbus.
Further, the A380 is critical to Airbus' business model because the company does not have a formidable contender in the next-generation, point-to-point market, Bauer said. Airbus's point-to-point aircraft, the currently under design A350, will compete with Boeing's 787 Dreamliner, also currently under design, but the Dreamliner will secure the majority of new orders in the category, in Bauer's interpretation.
"If the A380 doesn't achieve its sales goals, Airbus will trail Boeing in the two major, next-generation commercial airliner categories, trans-ocean and point-to-point, which is not a prescription for success," Bauer said. "For Airbus to grow at a good rate the A380 must succeed in grabbing market share from the 747."
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