Airbus’ profitability challenges

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By Vincent Valery


Feb. 10, 2020, © Leeham News: Airbus Commercial Aircraft ended 2019 with a surprisingly strong 1,131 new aircraft orders (768 net orders) and a backlog of 7,482 aircraft.

There were 863 aircraft deliveries, 8% higher than in 2018

But 2019 also sees settlement of a year-year probe into bribes and corruption of Airbus commercial airplane sales dating back years. A record fine of €3.6bn will be recorded against 2019 earnings. These results will be announced on Feb. 13.

Settling the probe lets Airbus off the hook from criminal prosecution, providing its skirts remain clean for the next three years.

But prosecution against individuals may proceed. The potential targets have not been identified.

  • The poster child of European integration;
  • Profitability lagging commercial success;
  • Decades-old programs still causing headaches;
  • Making up for early A220 program losses;
  • Short and long-term challenges.

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