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Airbus faces US$1.5 billion in make goods from glitches and delays
EUROPEAN planemaker Airbus suffered penalty payment of EUR1.4 billion (US$1.5 billion) against delays and glitches, leaving it to rely on the second half to chase after a targeted operating profit of EUR4.1 billion, reports Bloomberg.
Fixing faulty gearboxes on its A400M military transport, Airbus faced a EUR1.03 billion charge as well as a EUR385 million penalty for delivery delays in the A350 wide-body caused by a shortage of cabin fittings.
Not helping are engine problems the revamped Airbus workhorse the A320. This means another a big push to get planes delivered.
Airbus has devised an interim fix for the gearbox on the A400M, allowing a bigger gap between inspections, but is still working on a long-term solution.
The Toulouse-based company faces "a sprint finish" to achieve full-year goals, said Sandy Morris, a London analyst at Jefferies International in an investor note.
Fixing faulty gearboxes on its A400M military transport, Airbus faced a EUR1.03 billion charge as well as a EUR385 million penalty for delivery delays in the A350 wide-body caused by a shortage of cabin fittings.
Not helping are engine problems the revamped Airbus workhorse the A320. This means another a big push to get planes delivered.
Airbus has devised an interim fix for the gearbox on the A400M, allowing a bigger gap between inspections, but is still working on a long-term solution.
The Toulouse-based company faces "a sprint finish" to achieve full-year goals, said Sandy Morris, a London analyst at Jefferies International in an investor note.
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