Airbus, still reeling from a management shakeup that followed delays in its
flagship superjumbo jet program, is expected to unveil a costly revamp of its
mid-sized A350 on Monday.
The European plane maker will be seeking to reassure customers and investors
at Britain's Farnborough Air Show, one of the biggest events in the aeronautical
industry, that it is on the road to recovery.
A redesign of the A350 has long been expected. The plane was billed as a
rival to Boeing Co.'s long-range, fuel-efficient 787, but has won just 100
orders so far compared to 360 firm orders for the 787.
Tom Enders, the joint CEO of Airbus parent European Aeronautic Defence and
Space Co., confirmed this weekend that the company will announce the revamp of
the A350 at Farnborough, increasing its development cost to about US$10 billion
(euro8 billion) from the previously estimated US$5.7 billion (euro4.5 billion).
Airbus has been struggling to get back on track; the announcement last month
of a further seven-month delay to its A380 superjumbo program sent EADS shares
plunging and led to the departure of Airbus Chief Executive Gustav Humbert and
EADS co-CEO Noel Forgeard.
The 555-seat A380 will be taking part in the daily flying displays at
Farnborough, where 300,000 visitors are expected, but Airbus executives are
likely to face a tougher crowd indoors.
Airbus reported last week that its sales fell by more than half in the first
six months of the year to 117 planes, compared to Boeing's 480 orders for the
same period.
Boeing unveiled no orders at a news conference at Farnborough early Monday,
but airlines were expected to announce new plane purchases from both plane
makers later in the show.
Boeing Commercial Airplanes CEO Alan Mulally said the company is talking to
25 potential buyers for the 747-8, a larger version of its jumbo developed in
response to the troubled A380.
He declined to identify the airlines but said many already operated 747s.
"You can just look down the 747 fleets and see who they are," he said.
Boeing acknowledged Sunday that its 787 Dreamliner is overweight and
experiencing delays with some suppliers while stressing that the jet remains on
budget and on schedule.
"We're a little over where we want to be at this time on weight, but ahead of
where we were on previous programs, so we're really focused on weight-efficient
structure right now," Mulally said at a briefing for reporters in London.
"Some partners are a little behind on the schedule but we're working with
them on recovery plans to catch up," he said.
Mulally declined to specify where the problems were occurring but emphasized
that the plane remains on course for its first flight in mid-2007 and entry into
service the following year.
"The systems are coming together really well, the electrical power looks
good" and the plane's Rolls-Royce PLC and General Electric Co. engines come
"very very close to their performance goals," Mulally said.
Boeing Co. does not communicate development costs for its aircraft, reported
to have cost about US$9 billion (euro7 billion). Company spokesman Charlie
Miller said the supply and weight issues alluded to by Mulally would not affect
the program's budget or delay the schedule.
On the defense schedule, Boeing's F-15 and F/A-18 fighters will be on display
at Farnborough, as will Russia's MiG-29OVT jet, the Eurofighter Typhoon, and
Saab AB's Gripen.
Lockheed Martin Corp. will give an update on the F-35 Joint Strike Fighter,
which is scheduled to begin test flights in October in Texas and be ready for
use by the U.S. Marine Corps in 2012.
Raytheon Co. will display Britain's newest spy plane, the Sentinel R1, which
adds a sophisticated radar system to a Bombardier Global express business
jet.
