A nice end of the year for Airbus

While Airbus (EPA: AIR) has just ended a significant change among its directors, two important contracts have been signed by the company: a sale of 17 Airbus A320neo to EasyJet (LON: EZI) and of two satellites to the Eutelsat Communication (EPA: ETL) company.

Beginning of October, Airbus had already announced that Guillaume Faury will be at the head of the company starting in spring 2019. The move is expected to end the period of turbulence that Airbus has been in during the past year. Two other managers have also been announced: Michaler Schöllhorn has been named COO while Dominik Asam will replace the current CFO.

In addition to these major hierarchical changes, Airbus ends the year with an order by Easyjet of 17 Airbus A320neo whose value reaches 2.85G $CAN (1.9G €). Moreover, at the beginning of November, Al-Qahtani Aviation signed an agreement to buy 10 additional Airbus A320neo. This model called “neo” includes a “New Engine Option” enabling a saving of 15% in fuel consumption and a decrease in noise emissions of about 50% compared to the traditional A320 engine configuration. The A320 family is the best seller of Airbus, competing against the very successful Boeing 737 series. Around 560 Airbus A320 were sold in 2017.

The commercial aircrafts division is not the only one adding huge sales during the last quarter of 2018. Airbus Defense and Space signed on November 18 the sale of two telecommunication satellites to Eutelsat, which will renew the broadcast hub of the company in 2022. They will connect more than a thousand channels to about 135 million houses in Europe, Middle-East and North Africa. The value of this contract is of 750M $CAN (500M €), which will enable to revitalize the divisions incomes while the spatial market is having yet a difficult year.

Consequently, Airbus ends the year with a major change in management and significant commercial agreements. Airbus is entering 2019 with its head up high, with the innovative combat aircraft project “SCAF”, in development through a partnership between Paris and Berlin.

Bibliography

NY Times. (21 novembre 2018). Airbus Names Finance, Operations Chiefs Amid Major Overhaul. [En ligne]. Disponible:
https://www.nytimes.com/reuters/2018/11/21/business/21reuters-airbus-appointments.html

NY Times. (18 novembre 2018). Airbus and Eutelsat Sign UK Satellite Investment Deal. [En ligne]. Disponible:
https://www.nytimes.com/reuters/2018/11/18/business/18reuters-britain-satellite.html

Les Echos. (21 novembre 2018). Etape décisive pour l’avion de combat franco-allemand. [En ligne]. Disponible:
https://www.lesechos.fr/industrie-services/air-defense/0600183897791-etape-decisive-pour-lavion-de-combat-franco-allemand-2223516.php

BFM TV. (20 novembre 2011). Easyjet passe une nouvelle commande de 17 Airbus A320neo. [En ligne]. Disponible:
https://www.bfmtv.com/economie/easyjet-passe-une-nouvelle-commande-de-17-airbus-a320neo-1570793.html

Capital. (15 novembre 2018). AIRBUS DÉCROCHE UNE COMMANDE DE 10 A320NEO AUPRÈS DE AL-QAHTANI AVIATION. [En ligne]. Disponible:
https://www.capital.fr/entreprises-marches/airbus-decroche-une-commande-de-10-a320neo-aupres-de-al-qahtani-aviation-1315957

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