We’re at the Airbus Annual Press Conference for the 2012 results, the first of several stops on our Europe trip. Participants are:
Fabrice Breigier, CEO (FB)
Gunter Butschek, COO (GB)
John Leahy, COO-Customers (JL)
Tom Williams, EVP Programs (TW)
Domingo Urena-Raso, Head of Airbus Military (DUR)
- We have passed 12,000 orders, including 9,000 single-aisle. 17 new customers in 2012, of 89 served last year.
- 739 A320 family orders in 2012. 58 A330s, 27 A350, 9 A380.
- North America now 10% of backlog, Europe 14%, Middle East 9%, Asia-Pacific 35%, Africa 2%, Latin America 8%, lessors 20%.
- 305 A320 CEOs orders in 2012. 687 since neo launch.
- A320 sharklets above expectations at 4% vs 3.5% advertised.
- A330 can do 95% of all 787 missions. Sold 800 since 787 launch.
- A380 wing issue now behind us. New wing progressively incorporated in 2014. 97 aircraft in operation.
- A350 program remains very challenging, focused on next big challenge is first flight.
- Airbus Military: 32 orders (28 C295, 4 CN235).
- A330 MRTT delivered to Australia, Saudi Arabia, UK; selected by India, France. Won every major procurement outside US since USAF selection.
- First A400M delivery 2Q2013, will deliver four this year. 13 A400s in production.
- Focus on speed, agility, flexibility, innovation. Our future depends on capacity to be innovative.
- Our backlog is a record for Airbus and the industry.
- A380 takes off and lands every six minutes.
- 140 sales campaigns in 2012.
- Had 52% of the market in mid-size twin aisles.
- Total of 261 airline customers. Virtually every airline in the world.
- Boeing ramps up and down production, Airbus stays steady through economic cycles. If you’re smart enough to do it you can have a smooth pause when market goes down.
- We’ve taken the cycle out and intend to keep it that way.
- Leasing: 21% in direct sales to lessors, 40% when lessor purchase-leasebacks factored in.
- Airbus only did 1% of financing, ECAs 27%, sale/leaseback 17%, cash and commercial debt 55%.
- Eight years worth of production.
- Airbus has 52% of backlog, 51% by value.
FB: Reaction to 787 grounding: Both Boeing and Airbus give the same priority to safety. This is paramount. There is a decision of the FAA and this confirms again air transport is none of the safest around the world. I don’t know details. If it is about the batteries, we went through discussions with FAA and EASA and they seemed happy with our architecture. If FAA issues recommendations, we will study them and see if they apply to A350.
FB: A330 rates and lithium batteries architecture: Ramping up to rate 10, probably more upside to go higher, but no decision. A350: we have a bility to change many things, however regarding electrical architecture we don’t see any reason [now] to change design.
TW: On Tianjin FAL: In negotiation to extend the production line. There is a dependency on orders and extending the FAL.
FB: Still plan to break even on A380 in 2015. Recurring costs continue to go down. Target of 30 deliveries in 2015.
JL: Asia will be important market for 2013 goal of 700 orders. Lessors, too. Maybe some from US.
FB: I honestly wish all the best for Boeing to put 787 back in service.