Aviation News Update: Vueling Cancels Airbus Orders

Filed in archive Aviation News on November 5, 2007

Here's the best of the aviation news I missed.

EADS Counts Cost Of A400M Delay

EADS will take charges of between EUR1.2 billion and EUR1.4 billion euros (USD$1.74 billion - USD$2.02 billion) related to delays that have hit its A400M European military aircraft. The European aerospace and defence group, which has also had delays with the A380 superjumbo, added on Monday it had scrapped its 2007 guidance for earnings before interest and tax (EBIT). It said it would give a trading update on November 8 when it will publish third-quarter earnings. Last month, Airbus confirmed it had pushed back deliveries for the A400M airlifter by up to a year.

Airbus, Boeing Vie For Air Arabia Order

Boeing or Airbus may win an order this month worth up to USD$3.95 billion from United Arab Emirates-based Air Arabia, which said it plans to buy as many as 50 planes. The Middle East's largest low-cost carrier had previously said it was looking to purchase 34 either Boeing 737 or Airbus A320 aircraft. A Boeing 737-800 costs USD$79 million at list prices, valuing a 50 plane order at USD$3.95 billion. An order for 50 A320s would be worth about USD$3.25 billion.

Vueling Cancels 2008 Airbus Orders

Spanish airline Vueling said on Thursday it has cancelled an order for 3 new Airbus A320 aircraft and postponed delivery of six others to 2009 from 2008 after reporting a 73 percent fall in third quarter net profit. Vueling, caught in a row between shareholders and management, said it faced strong competition from low-cost and traditional carriers as well as high fuel costs.

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