European aircraft manufacturer Airbus today announced fresh delays to deliveries of its flagship A380 superjumbo that parent company EADS said could cut its earnings between 2007 and 2010.
'We have had an industrial delay. It will shift the programme to the right by six to seven months,' John Leahy, Airbus chief commercial officer said.
Leahy said the company was still on track to have the plane certified and to deliver its first aircraft to Singapore Airlines Ltd by the end of 2006, but deliveries in 2007 would be cut to nine aircraft from an original target of 20 to 25.
Airbus said there would also be shortfalls of between five and nine planes in 2008 and of around five in 2009. It declined to identify which airlines may be affected.
It was the second six-month delay in production that Airbus has announced in the year since the plane made its maiden test flight. Airbus faces fines for late delivery of aircraft under the earlier setback, which was also partly blamed on problems with producing the wiring in the plane's fuselage.
EADS, which owns 80% of Airbus, said the delays to the A380 programme would mean annual shortfalls in earnings before interest and taxation (EBIT) of around €500m from its original planning. It said cashflow shortfalls would rise from less than €300m in 2006 to more than €1 billion by 2008, decreasing sharply thereafter.
It said, however, that it would look for unspecified 'sources of compensation' across the group to try and offset the impact.
