Airbus beat Boeing in net aircraft orders in the first quarter.

The plane maker won 395 net orders by March 31, compared with 288 recorded by Boeing by April 1. Besides, Airbus delivered 123 aircraft in the first three months of the year, compared with 115 for its US rival. AFP (08/04), AFX (08/04), Borsen-Zeitung, Los Angeles Times (08/04)

Boeing is poised to provide an update on its 787 Dreamliner programme.

Citing a source close to the matter, Seattle Post Intelligencer says the company is likely to announce a delay of at least six months, which will push the programme back some 14 months from its initial schedule. That would mean that launch customer All Nippon Airways will not take delivery of its first aircraft until autumn 2009. The US newspaper notes that Boeing is now getting close to the same kinds of delays experienced by Airbus with its A380 superjumbo. The 787 delays are mostly due to production issues, but there are also design issues. Boeing admitted last month that it would have to strengthen the central wing box. Bloomberg focuses on investors’ reactions if Boeing announces a third delay to the programme. The plane maker has already lost 26 % of its market value since the first delay was announced in October. Bloomberg (08/04), Suddeutsche Zeitung, Seattle Post Intelligencer (08/04), Seattle Times (08/04)

The Future Combat Systems programme is set to become the most expensive

weapons programme in the US Army’s history. The Washington Post features a special report about this programme, which the Army values at $ 124Bn. Independent estimates of the Secretary of Defence, however, evaluate the programme at $ 203Bn to 234Bn. Development of the FCS project is at its early stages, but is under threat because it depends on three separate military programmes –Joint Tactical Radio System (JTRS), Warfighter Information Network-Tactical (WIN-T), and Transformational Satellite Communications (TSAT)- that have been plagued by cost overruns, technological issues and schedule delays. The Washington Post (08/04)

Insider trading allegations come at an ill timing, when the EADS and Airbus managements

need to concentrate on delivering key new aircraft development programmes. Equity analysts generally do not see the AMF probe having much impact with the EADS share price at current levels. However, they focus on matters of greater importance for the group’s future profitability, namely the US/euro exchange rate, the oil price and the state of the commercial aviation cycle. In the US, three small airlines have collapsed into bankruptcy already, including Skybus, who had in place an order for 65 Airbus A319s. Many US airlines are also reducing capacity in the domestic market, in order to offset the ever-rising oil price.

French financial watchdog AMF yesterday handed its inquiry findings on EADS down

to the public prosecutor’s department. It also filed notices of grievance against shareholders Lagardere and Daimler, as well as against 17 former and current executives of EADS and Airbus for alleged insider trading and insufficient financial communication. A few hours before, the French Mediapart website had leaked the introductory section of the 94- page report, as well as the names of the involved executives. This is the second time that confidential AMF documents have been leaked to the press. In a statement, EADS said it could not comment on the document as it had not yet received it.

Stefan Zoller, chief executive of EADS’s defence and security division,

said the business aimed to improve its margins in the coming years. Mr Zoller said the Ebit margin would improve “substantially” in 2008, from 6.2 % in 2007. He added the margin is expected to rise to 8 % on growing sales in the next three to five years. EADS Defence and Security plans to grow in both its home markets and abroad. To reach that goal, Mr Zoller said part of its production will be transferred abroad, while the management also works hard on potential acquisitions to tap new markets in which EADS is not yet represented. The company will also bet on the development of services to sustain its growth, notably pilot training in Spain. Reuters (08/04), Dow Jones Newswires (08/04), Frankfurter Allgemeine Zeitung, Handelsblatt

In an effort to harmonise its fleet by 2010, Moroccan low-cost airline Atlas Blue

said it would decide this year whether to lease an all-Airbus or an all-Boeing fleet. The company currently operates 11 Boeing 737-400s and Airbus A321s. AFX (08/04)

Airbus chief commercial officer John Leahy told a press conference in Auckland

that the plane maker did not expect to gain any big competitive advantage from possible further delays to the Boeing 787 programme. He said Airbus would not benefit from delays to Boeing’s production schedule, “unless it comes out that there is some sort of design shortfall on the aircraft”. Besides, “we are sold out for several years with our A350 aircraft”, he pointed out. Regarding this latest programme, Mr Leahy said he did not expect any delay to the 2013 target for service entry of the A350, adding that the group still forecast around 750 aircraft orders in 2008, or even more “if the market stays strong”. Dow Jones Newswires (08/04)

Toulouse-based aerospace supplier Latecoere

is set to relocate part of its fuselage activities to Tunisia. The group has already established wiring activities in this country since 2006, and is now expected to announce the creation of a production site employing 1,000 people at first, next to Tunis. L’Express (10/04)

In partnership with Virgin Atlantic, Boeing recently tested a biofuel-propelled 747

jumbo, which flew between London and Amsterdam using a blend of kerosene and coconut oil and babassu nut. The newspaper mentions several other projects, including Solar Impulse (solar plane) and Hy-Bird (electric plane). La Tribune

EADS will present the new A400M military transport

aircraft at the EADS-Casa assembly site in San Pablo, near Seville, next April 22. Several company executives will attend the ceremony, reports Negocio. The expertise of the Andalusia-based facilities will be under the spotlights as the aircraft –a unique type of military plane in its segment- makes its “first steps”, comments the Spanish newspaper. The A400M’s transport capacity, indeed, is superior to that of the Hercules and its size is smaller than that of other US transport jumbo jets, namely the C5 and C17. It can notably carry vehicles and helicopters. The newspaper adds that the A400M can operate in any weather condition and boasts advanced selfprotection systems. Negocio

Finmeccanica is confident that the Eurofighter jet will soon be purchased by Japan.

While Japan has so far only been buying from the US due to its security alliance with the Americans, dissatisfaction has been growing in the archipelago after the US Congress decided that the F-22A fighter jet, which cannot be detected by radar, will not be sold to its closest ally. Financial Times Deutschland, Handelsblatt

Managing director of Finmeccanica’s helicopter subsidiary

AgustaWestland, said he expected Japan to order up to $ 3Bn of military helicopters in the next two to three years. He told Reuters that demand for military helicopters was sustained worldwide as several countries want to reinforce their security forces. “It is a booming market”. In Japan, some 30 AgustaWestland-built helicopters are already in service, compared with 480 Eurocopter-made helicopters. Mr Orsi said the company now aimed to strengthen its already-existing partnerships with Japanese companies, but denied that acquisitions of local groups were on the agenda. Reuters (08/04)

The European Court of Justice yesterday condemned

Italy’s illegal practice to order government helicopters from national manufacturer AgustaWestland “without any sort of bidding procedure”. The Court said that only the purchase of military equipment could benefit from other procurement rules and doubted that this exception could apply to the government helicopters bought by Italy. AFP (08/04), The Wall Street Journal Europe

French Defence Minister Herve Morin yesterday briefed the Army

on his planned reform of the national armed forces. He sought to reassure them over the “ongoing modernisation” effort, as more than 50,000 jobs are to be axed.
Le Figaro