Thursday, January 29, 2015

Airbus replaces the director of its military wing after … – Zonebourse.com

Airbus replaces the director of its military wing after … – Zonebourse.com

(Update: new declarations Tom Enders on the continuation of the A400M program)

The aerospace group Airbus Group (AIR.FR) replaced Thursday the director of its military aircraft division, Domingo Urena-Raso, after the setbacks faced by the A400M aircraft, and said he would face penalties because of delays in delivery of the unit.

Domingo Urena-Raso will be replaced as of March 1, Fernando Alonso, currently responsible for the test flights. Until then, the direction of the military aviation sector will be entrusted, Acting Bernhard Gerwert, CEO of Cassidian. Domingo Urena-Raso will be given new positions within the group.

The executive president of Airbus, Tom Enders, pledged Tuesday to change the program for the A400M military transport, while its customers, penalized by a new set of problems, have complained of defects and delivery delays.

“We have not done as well as we would have liked on the A400M, and I have to apologize,” said Tom Enders Tuesday night at an event organized by the aerospace and defense group, according to the text of a speech prepared for the occasion.

“I can assure you that there will be consequences for this program in terms of management and organization,” he had said, without elaborating.

Tom Enders said the group will probably have to pay penalties to the country Customers who bought the device to compensate for delays in delivery.

“The situation this time is not as critical as it has been by the past,” said Tom Enders, however, finding that it was not “a catastrophe.” The group will not abandon the program and does not require additional money to states as he could do in the past, he has advanced.

Airbus warned in November that its results could be affected by the program, which is still not profitable. The group already were delays in deliveries, while Airbus has finally reached its goal for 2014, which was to deliver more than 10 devices to the armies of the client air.

billion of additional costs

The development of the A400M has generated additional costs of several billion euros and took several years behind the original schedule, Airbus and its partners have encountered a number of difficulties in the construction of the unit.

Airbus received 174 orders for the A400M. Malaysia is the only customer for this device outside of the six European countries, plus Turkey, involved in the development of the program. Some countries have revised their orders down.

The European aircraft manufacturer needs additional contracts for the program to be a profitable day, the group said. Export campaigns on this device is one of Airbus priorities this year, said some of its officials.

The British Ministry of Defence is among the buyers who are still waiting for their devices. “Airbus is working hard to deliver the aircraft as quickly as possible,” assured Tom Enders in London. The Royal Air Force is expected to have seven A400M in the end service this year, he said.

Airbus will release its financial results for the year 2014 on 27 February. It will reveal to the time the impact of the difficulties of the A400M program on its results.

Domingo Ureña-Raso was appointed executive vice president of military aircraft program Cassidian a year ago.

-Robert Wall, Dow Jones Newswires (French Version Emilie Palvadeau Jerome Batteau)

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