Airbus likely to report losses for 2006

Airbus likely to report losses for 2006

Airbus SAS is the world’s largest maker of commercial aircraft. The company is however likely to post a loss for 2006 as they suffered from delays in their A380 superjumbo jet launch.

The delays increased costs of manufacturing for the company and a lot of potential customers moved on to order planes from rivals Boeing.

The company also is suffering from paying penalty payments to customers, write-down of assets and the cost of a reorganization plan.

Airbus has blamed the delays in their A380 plane on the complexity of installing 300 miles of wiring in each of the double-decker planes. Customers are free to customize the systems which makes it more complicated to get the wirings right.