Enders Under Pressure: A Bumpy Ride at Airbus

Usually Tom Enders starts the day with a bounce in his step. “When I get up early, I have time to go jogging and can read e-mails in peace and quiet,” said the Airbus chief.

But in recent weeks, a torrent of bad news has interrupted the 57-year-old’s morning routine day after day:

– The A320neo, its mid-range fuel-efficient passenger plane, has problems with its engines.

– A helicopter in the group’s Super Puma series crashed in late April and aviation authorities have grounded the model.

– Technical problems have delayed deliveries of the new A400M military transport, and some German politicians want to cancel orders.

– And production snags have plagued almost every passenger aircraft that Airbus makes, from the commercial standard A320 to the super-jumbo A380.

Why it matters

The shortcomings are costing billions, but Airbus is helped by the fact that competitors are struggling with similar problems.

Insiders say canceled orders could reduce sales by as much as €6 billion in the next two years, or about $6.7 billion.

Since its all-time high in December, its share price has fallen by 20 percent.

One of the biggest problems is the military transport A400M. It is the most important product of Airbus Defense and Space, the group’s second-largest division with revenues of €13 billion. (end of excerpt)

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