graphic
graphic  
graphic
News > International
graphic
Airbus gets $3.6B order
graphic December 6, 2001: 4:39 a.m. ET

Germany's Lufthansa orders 15 Airbus A380 superjumbos from Airbus
graphic
graphic graphic
graphic
graphic
graphic       graphic
  • Lufthansa jobs threatened - Nov. 20, 2001
  • Lufthansa cuts earnings forecast to pay for strike, pilot's wages - Jun. 13, 2001
  • Airbus edges Boeing in Emirates order - Nov. 5, 2001
  • BAE Systems to shed jobs, close regional jet production - Nov. 27, 2001
  •  
    graphic
    graphic
    graphic       graphic
  • Lufthansa
  •  
    graphic
    LONDON (CNN) - Deutsche Lufthansa, Europe's second-biggest airline, ordered 15 Airbus A380 jumbo jets worth about $3.6 billion.

    The German airline had postponed the decision following the September 11 terror attacks that sparked a crisis in the airline industry that has cost more than 100,000 jobs, a slump in profits and drop in passenger numbers.

    Lufthansa (FLHA) said the first 555-seater double-decker A380 would be delivered in 2007. Lufthansa declined to discuss the price of the order but each aircraft has a list price of $240 million.

    "With this decision, we are signalling a future-oriented investment, which will help strengthen Lufthansa's position long term in international competition," Chief Executive Juergen Weber said in a statement.

      graphic
    The German airline, which has grounded aircraft following the attacks, is expected to announce job cuts on Friday, a source told CNN. Germany's national carrier could axe up to 4,000 jobs, according to a Reuters report last month.

    Airbus, the world's second-largest passenger jet maker, has been attempting to break Boeing's 30-year stranglehold on the jumbo market. It has won about 80 orders, excluding the latest Lufthansa order.

    But the company needs to book between 250 and 300 A380 orders before the project breaks even, analysts said.

    Boeing has turned its attention to developing a sub-sonic cruiser after winning no customers for its planned 747X, a stretched version of its popular 747 jumbo.

    Lufthansa will use the A380 on routes to New York, Tokyo, Singapore and Delhi from Frankfurt. The airline has not made a decision on the power plants to power the aircraft, a spokesman said.

    "The A380 allows per-seat costs to be reduced by between 15 and 20 percent," Weber said.

    Airbus is 80 percent-owned by European Aeronautic Defense & Space (PEAD) and 20 percent by BAE Systems (BA-).

    EADS's stock soared 7.9 percent in early Paris trading on Thursday after the announcement. BAE gained 1.7 percent in London, while Lufthansa declined 1.9 percent in Frankfurt. graphic

      RELATED STORIES

    Lufthansa jobs threatened - Nov. 20, 2001

    Lufthansa cuts earnings forecast to pay for strike, pilot's wages - Jun. 13, 2001

    Airbus edges Boeing in Emirates order - Nov. 5, 2001

    BAE Systems to shed jobs, close regional jet production - Nov. 27, 2001

      RELATED SITES

    Lufthansa





    graphic graphic

    Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

    Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

    Factset: FactSet Research Systems Inc. 2014. All rights reserved.

    Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

    Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.

    Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

    Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

    Factset: FactSet Research Systems Inc. 2014. All rights reserved.

    Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

    Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.

    graphic