Airbus has threatened to end its A400M military aircraft program if it doesn’t receive funding from European governments by the end of the month.
The troubled aircraft made its first flight late last year. But cost overruns in the program are draining Airbus, the company chief executive said.
The A400M isn’t the only troubled program out there.
Airbus’ A380 super jumbo jet is the company’s “financial albatross,” writes Scott Hamilton with Leeham Co.
Airbus has struggled with the production of its A380, failing to meet last year’s delivery goal or to cut costs adequately. With the break-even point for the program nowhere in sight, Hamilton asks “Has the time come for Airbus to cut its losses and terminate the program?”
Delays and lagging orders have caused industry observers to wonder whether Boeing’s 747-8 program, particularly the passenger version, also is on the chopping block.
Boeing plans to fly the first 747-8 Freighter this month. Altogether the 747-8 has won more than 100 orders, but the bulk of those are for the freighter. Hamilton doesn’t think Boeing will kill its 747-8 program because of the problems that would cause for its suppliers, customers and Boeing’s reputation.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
