Airbus Says It Will Deliver Despite Engine Delays
19 September 2016 - 7:40PM
Dow Jones News
LONDON—Airbus Group SE said it still expected to meet full-year
delivery targets days after engine supplier United Technologies
Corp. warned it would fall short of plans.
"We confirm our 2016 delivery guidance of at least 650
aircraft," an Airbus spokesman said via email on Monday.
United Technologies Chief Executive Gregory Hayes told investors
on Friday that the company's Pratt & Whitney aircraft engine
unit is likely to ship only 150 of its newest family of commercial
jet engines, known as the geared turbofan. It previously targeted
about 200 deliveries this year.
Managing suppliers has become a major challenge for Airbus and
rival Boeing as they boost output of some of their most popular
jets after years of strong demand. Airbus also is running behind in
delivering its A350 long-range jet after French cabin equipment
provider Zodiac Aerospace SA fell behind in the production of some
components.
Airbus uses the Pratt & Whitney engine to power its new
A320neo narrow-body. Deliveries of those began this year amid
delays related to the Pratt engine. A joint venture of General
Electric Co. and Safran SA offers a rival engine for the plane.
Jefferies analyst Sandy Morris in a note Monday said the engine
situation could affect delivery of about 12 A320neo planes. Early
planes sold usually come with big discounts, limiting the financial
loss to Airbus from lower deliveries, he said.
Airbus said it would meet its delivery target by delivering more
of the older version of the A320 single-aisle plane.
Europe's aircraft maker said it has delivered 19 A320neo
jetliners so far— 15 using the Pratt & Whitney engine whose
development was six months ahead of that of the rival design.
Airbus said Pratt & Whitney was addressing early flaws with
the engine, which was otherwise meeting performance targets.
Canadian plane maker Bombardier Inc. this month cut its 2016
delivery guidance for its new CSeries aircraft to seven planes from
15. The CSeries exclusively uses the Pratt & Whitney engine,
which Bombardier blamed for its change in plan. Pratt still hopes
to deliver 400 of the new engines next year. The company says it
will churn out more than 1,000 of the engines by 2020, part of an
effort to attack a backlog that now includes some 8,200 engine
orders and options.
Write to Robert Wall at robert.wall@wsj.com
(END) Dow Jones Newswires
September 19, 2016 05:25 ET (09:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Airbus (PK) (USOTC:EADSY)
Historical Stock Chart
From Apr 2024 to May 2024
Airbus (PK) (USOTC:EADSY)
Historical Stock Chart
From May 2023 to May 2024