EADS shares fall sharply after report of more A380 problems

0 Comments | AFP, May, 2008

PARIS (AFP) — Shares in European aerospace giant EADS fell sharply on Monday after reports that its Airbus unit faces more production delays on its A380 super jumbo, the world's largest passenger aircraft.

The German business magazine Wirtschafts-Woche cited a letter by Airbus chief executive Thomas Enders to customers, together with company sources, as saying there could be additional problems on the A380 and it might not be able to deliver the 25 planes promised in 2009.

Airbus would "almost" reach this year's delivery target of 13 planes but would likely not be able to make four planes a month as planned eventually, it said.

Quality problems on components as well as requirements by airlines concerning interior design, which makes production more complex,...