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Airbus shares plummet

A miniature model of the double-decker Airbus A380 at the Asian Aerospace 2006 show in Singapore, February 23.

TEXT OF STORY

SCOTT JAGOW: The Airbus A380 is that new, massive, jet. A lot of airlines can't wait to get their hands it, but they're gonna have to wait. Airbus says it's looking at major delays, and today, shares of its parent company plummeted 33 percent in Europe. More now from Stephen Beard in London.


STEPHEN BEARD: The world's largest passenger jet is creating a jumbo-sized headache for Airbus. Already six months behind schedule, the project has now been delayed by another six months.

Airbus will now deliver only one of the double-deck 555-seat planes by the end of this year. Instead of the 20 it promised next year, only nine will materialize. Airbus blames difficulties with the plane's complex wiring system.

The 16 carriers that have ordered the plane won't be happy, says Mark Pilling of Airline Business Magazine.

MARK PILLING: You are putting a big aircraft on major routes. Your planning is all in place. You've got your infrastructure ready. You're gearing up to sell it etc. When it isn't going to happen you think, it is a real hassle.

But he does not believe any of the carriers will cancel their orders. He says they are more likely to demand and get substantial compensation.

In London, this is Stephen Beard for Marketplace.

About the author

Stephen Beard is the European bureau chief and provides daily coverage of Europe’s business and economic developments for the entire Marketplace portfolio.

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