Fixing the hairline wing cracks on the Airbus A380 superjumbo, which originated at its Filton plant, has already cost the aerospace group’s parent group EADS 158m euros (£126m), it emerged today.
EADS has taken the amount as a one-off charge in its first-quarter financial results – a move analysts say aims to draw a line under the episode in balance sheet terms but leaves Airbus facing a potential drag on operating profits for the next two years.
The cracks on a handful of fixing brackets inside the giant aircraft’s wings were discovered by operator Qantas in January. Civil aviation authorities ordered checks on the superjumbo fleet but ruled the A380, in service since 2007, is safe to fly.
The tiny cracks have been blamed on a combination of manufacturing flaws and the choice of materials by engineers at Filton – where the 555-seater plane’s wings, fuel system and landing gear were designed. Wing parts are also made at Filton and assembled at a sister plant in North Wales.
Last week Airbus said a retrofit to provide a long-term solution to the problem was more complicated than first thought and went beyond the amount normally set aside for repairs under warranty.
Fixing the fault on aircraft still in production will hit Airbus’s hopes of reducing the A380’s operating losses this year and in 2013 but EADS said the plane should break even by the beginning of 2015.
It expects to deliver 30 A380s this year, although it admitted this would be more challenging as deliveries are moved towards the latter part of the year. Four A380s were delivered in the first quarter.
Airbus meanwhile said its key A350 mid-sized airliner project, which began first assembly in April, was advancing while remaining “very challenging”. The A350s wings, largely made from pioneering lightweight composite material, were designed at Filton by Airbus and parts are being made by GKN Aerospace at Avonmouth.
EADS first-quarter operating profit before one-offs doubled to 480m euros as revenue climbed 16% to 11.4bn, with helicopter unit Eurocopter performing strongly.
