Dec. 11, 2014: The fallout continues from the disastrous Airbus investors days held yesterday and today in London. Company investor days are supposed to bolster the stock. Yesterday, Airbus stock tanked 10% on cash flow and profit projections, the delivery delay of the first A350 and, according to some commentary, news that theA380 program might be terminated.
We’ve talked with a couple of the analysts who were at the meeting, who reacted with a mixture of eye-rolling, chuckles and “what where they thinking?” moments.
And Tim Clark, president of Emirates Airlines, which has ordered 44% of the total orders for the A380, was none too pleased about the comments from Airbus’ CFO that cancelling the A380 program might be contemplated. Tim Hepher of Reuters has this exclusive interview with Clark.
Airbus was in full damage control over the A380 today to mop up the Wednesday remarks of possibly cancelling the program. Analyst reaction over the kerfuffle was that cancelling the program would be a good thing because of the cash drain and, at best, break-even nature of the program. One analyst, in a remarkable bit of candor for which he pleaded anonymity, said the market would “puke” if Airbus proceeded with the expense of an A380neo–and this comment was before Airbus Commercial CEO Fabrice Bregier said that one day there will be a neo (and a stretch). We’ve not heard back if this analyst had a burp bag handy. Airbus stock closed down another 4.3% today.
One analyst wondered how Airbus could have such contradictory messages, when the presentations were prepared in advance.
All-in-all, not a good two days.