EADS CEO Louis Gallois said the company is “devoting maximum attention to solving the A380 wing rib feet issues,” discovered earlier this year . He estimated the total cost of the fix to be €105 million ($137.7 million), a cost that will be “borne by Airbus,” EADS said.
“We have taken €105 million of provision to repair the [71 A380s]. I said 67 in my press conference but it is 71 because we have delivered four aircraft since the beginning of the year,” Gallois said March 8 in the EADS FY 2011 conference call to analysts and journalists.
“The repair of the first 17 airplanes has confirmed that our provision was at the right level,” he said. “But now, we have also to find the permanent industrial solution to the problem we have identified. We know that the root cause of the problem is linked to stress and … also to the quality of the material of the bracket. And now we have to find the manufacturing process and we will have a clear evaluation of the potential cost overrun when we know exactly this manufacturing process.”
Gallois said he does not anticipate the charges to affect the company’s target to “breakeven in 2015.”
There were 26 A380 deliveries in 2011, which EADS said “exceed targets.” So far in 2012 it has delivered two A380s to Singapore Airlines, one to Emirates and one to China Southern Airlines. The cracks were discovered in early January .
Article Source : ATW Daily News
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