Plus   Neg

Airbus Reportedly To Miss A320neo Target On Pratt Engine Issues

Airbus (EADSF.PK,EADSY.PK) will miss its delivery target for Pratt & Whitney-powered A320neo narrow-body jets this year, after problems with the engines caused an almost three-month halt in shipments, Bloomberg reported citing people familiar with the matter.

The Toulouse, France-based planemaker expects to deliver 30 to 40 fewer of the aircraft than previously anticipated, according to report. Airbus had planned to hand over about 210 of the Pratt-powered jets -- one of two engine options for the A320neo -- during the rest of this year. It could get closer to that target if Pratt, a unit of United Technologies Corp., can accelerate engine production beyond current levels.

Airbus had said in early June that it expected higher costs to manage delivery of scores of aircraft that were parked without engines after the latest issue with a knife-edge seal on the high-tech engine, one of several in a new generation of fuel-saving power plants that have suffered through persistent teething pains.

Airbus reportedly said it can still reach its overall production target for shipping 800 planes of all its models this year. Airbus is due to publish monthly order and delivery totals for June this week.

The company can even meet its target for deliveries of the A320 family of planes, the report said, by picking up the slack with other models, including the A320ceo. That variant is less expensive than the more fuel-efficient neo, which stands for new engine option.

The company plans to ship about 210 more A320neo planes with engines made by CFM International, a joint venture of Safran SA and General Electric Co., the report said.

For comments and feedback contact: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Southwest Airlines Co. said it will investigate whether a dispute with its mechanics union was the cause of an "unprecedented number" of out-of-service aircraft that resulted in flight cancellations and flight delays. Southwest Airlines COO Mike Van de Ven said in a statement that the airline has been negotiating with Aircraft Mechanics Fraternal Association or AMFA for more than six years. Shares of Air France-KLM Group were gaining around 4 percent in Paris trading after the airline reported Wednesday narrower net loss in its fourth quarter with improved revenues. For fiscal 2019, Air France-KLM Group plans to selectively grow capacity for the Passenger network by 2 percent to 3 percent compared to 2018. The company also said it will pursue initiatives to reduce unit costs. Walmart Inc. (WMT) reported adjusted EPS of $1.41 for the fourth-quarter of fiscal 2019. On average, 27 analysts polled by Thomson Reuters expected the company to report profit per share of $1.33 for the quarter. Analysts' estimates typically exclude special items. Net income attributable to Walmart...
Follow RTT