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02-Jul-2010 5:20 PM

Airbus pushing ahead with A350 financing

Analysis

Airbus has brushed off any notions that this week's WTO ruling will affect its new A350 XWB programme. The company's Senior VP for Public Affairs and Communications, Dr Rainer Ohler, stated the company is moving forward at full speed on the A350 - "Boeing's wishful thinking to the contrary".

Summary
  • Airbus is confident that the recent WTO ruling will not impact its A350 XWB program.
  • The A350 program requires an investment of EUR10-12 billion, with a portion of the funding provided by governments.
  • The recent WTO ruling did not cover the new A350 aircraft.
  • Boeing's shares experienced a 0.8% decline following the ruling, while EADS fell 2.9%.
  • The daily share price movements of selected aviation suppliers were monitored.
  • The source of the information is the Centre for Asia Pacific Aviation and Yahoo! Finance.

The A350 programme is expected to require investment of EUR10-12 billion. Approximately EUR3.5 billion of this will be provided by the governments of Germany, the UK, Spain and France, through reimbursable launch investment. Airbus stated that funding for the A350 programme has been unaffected by the recent WTO ruling, which did not cover the new aircraft.

Boeing's shares fell 0.8% yesterday, while EADS fell 2.9%.

Selected Aviation suppliers' daily share price movements (% change): 01-Jul-2010


Source: Centre for Asia Pacific Aviation & Yahoo! Finance

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