Photo Credit: Airbus
Airbus has been negotiating a reduced repayment for A380 production fund with the investors(Government). The $6 billion Airbus A380 project was funded by the government through a scheme called “repayable launch investment”. According to the investment plan, the Airbus agreed to make a repayment for each aircraft it sells.
Unfortunately A380 failed to recover its production cost because so far it has taken orders for only 371 Aircraft having a list price of US$432.6 million a unit.
According to Telegraph, The Airbus COO, “Tom Williams, has previously admitted the A380 project “will never be profitable” though Airbus is understood to be breaking even on the airliner when development costs are excluded.”
Unconfirmed report says that so far Airbus has repaid at the rate of just 1 million for each aircraft delivered. The belt got tightened when airbus said it is reducing the A380 production rate from current 27 to 12 a year by 2018.
The A380 issue and bribery scandal has overshadowed Airbus’s CSeries acquisition victory.