ATW Daily News

Airbus posts mixed 2009 performance

Wednesday January 13, 2010

Airbus yesterday announced a full-year delivery record of 498 aircraft in 2009 (up from 483 in 2008) including 402 from the A320 family, and a gross order intake of 310 aircraft, while admitting that its "biggest disappointment" in the past year was a slowdown in the A380 delivery schedule.

President and CEO Tom Enders called 2009 "a very difficult year" but said he was satisfied that "the prognosis that deliveries would fall dramatically didn't come true. For the first time, we delivered 400 single-aisle planes." Speaking at the manufacturer's press event in Seville, he added, "we didn't make compromises on aircraft prices. We don't give away aircraft."

Last year's deliveries included 86 A330s/A340s and 10 A380s along with 16 aircraft from Airbus Military. The company said the gross order total met expectations and was worth $34.9 billion. Orders comprised 228 A320 family aircraft, 78 A330s/A340s/A350s and four A380s. Cancellations reduced the net to 271 planes valued at $30.3 billion, compared to 777 in 2008 (ATWOnline, Jan. 16, 2009). It claimed a 54% share of the global 100-plus-seat market and said the total order backlog of 3,488 aircraft as of Dec. 31 was worth $437.1 billion and was equal to six years of full production. Boeing last year booked 263 gross orders and 142 net.

Looking ahead, Airbus has a significant amount on its plate, including plans to study re-engining the A320 family and the need to smooth A380 production and in-service performance. COO-Customers John Leahy said the manufacturer expects 250-300 orders this year, including some for the A380, and is anticipating a "turnaround" in demand in 2012. Enders said production will stay at 2008-09 levels and Airbus will "remain prudent and flexible" on that front.

Enders confirmed that a next-generation engine for the "bread and butter" single-aisle aircraft will be investigated but declined to reveal a specific schedule. International Aero Engines will be involved, he said, adding that further details will be made available "when we are ready." Leahy told ATWOnline that Airbus continues to invest up to $150 million a year in A320 family updates, although a re-engining obviously would require a greater expenditure. There will be no A320 replacement airframe until at least 2024 (ATWOnline, May 13, 2009).

Regarding the other end of the product line, Enders admitted that A380 production and reliability have to improve, especially because of the worldwide attention paid to the program. The company delivered just 10 A380s last year as opposed to the 18 that were planned. It expects to delivery 20 in 2010, Enders said.

"We had 10,000 A380 commercial flights. Each time there is a technical problem with the aircraft it's a big issue with the public," COO Fabrice Bregier told this website, echoing Enders' sentiments. Airbus is targeting 98.5% operational reliability and currently is running at 97.5%, Bregier said, adding that operators have seen an average increase in load factor of 10 points on A380 frequencies.

When asked about the program's breakeven date, Enders said, "This is a game we play every year at press conferences," adding that it will be "some years" before breakeven is achieved. Leahy admitted to ATWOnline that the poor economy is hurting sales. "In a downturn like the industry is suffering now, you don't sell 747s either," he said.

by Kurt Hofmann

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