By Robert Wall
LONDON-- Airbus Group NV isn't ready to abandon production of
its A380 superjumbo as the head of the commercial jet unit promises
to attract new buyers and eventually upgrade the aircraft.
"We will get additional customer[s] on the A380," Fabrice
Brégier, head of the commercial jet unit at Airbus, told investors
on Thursday. Eventually the plane will be upgraded with new engines
and stretched to seat more passengers, he added.
Airbus and rival Boeing Co. have struggled to secure more sales
for their largest and most expensive aircraft as airlines seek
smaller, twin-engine long-range jets.
Boeing this week said it would reduce monthly production of its
747-8 jetliner to 1.3 aircraft a month from 1.5 in September 2015,
bringing annual deliveries to approximately 16 from 18 jets.
Airbus has suffered order cancellations on the A380 as airlines
worry about filling an aircraft that seats about 525 passengers and
costs $414.4 million at list price. Airbus has booked orders for
318 superjumbos, though some customers, like Virgin Atlantic
Airways with a deal for six, have said they may not take the
planes.
Mr. Brégier tried to dispel concerns over the future of the
program after Airbus's Chief Financial Officer Harald Wilhelm told
investors on Wednesday that one of the options could be ceasing
production at the end of the decade.
Mr. Wilhelm said the superjumbo program, after years of losses,
would reach break-even next year and remain there until around
2018. The plane maker then faces a choice of whether to upgrade the
jet, stay the course, or discontinue building the plane in a rare
admission that production of the superjumbo could end.
Mr. Brégier said cost reduction efforts on the A380 mean the
aircraft could break even at a unit level even if production drops
slightly below 30 aircraft a year.
Nick Cunningham, an analyst at Agency Partners, said the choice
is really to upgrade or to cease production with management having
committed not to allow the program to return to making losses.
Emirates Airline, the largest buyer of the superjumbo, has been
urging Airbus to upgrade the plane.
Airbus is also is in talks with four existing A380 customers to
buy more aircraft, John Leahy, chief operating officer for
customers at the Airbus jet unit told investors. He also said he
recently held talks with Emirates about the so called A380neo, a
potential upgraded model with new engines.
Mr. Brégier also said he still expects the first A350 jetliner
to go to lead operator Qatar Airways before the end of the year The
handover anticipated for the coming weekend was called off
Wednesday.
Write to Robert Wall at robert.wall@wsj.com
Access Investor Kit for Airbus Group
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=NL0000235190
Access Investor Kit for Airbus Group
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US0092791005
Access Investor Kit for The Boeing Co.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US0970231058
Subscribe to WSJ: http://online.wsj.com?mod=djnwires