Airbus A380 Production Issues Widen Amid FedEx Cancellation Concerns

Airbus parent EADS has announced a third-quarter operating loss after taking a $1.28 billion charge due to production problems with its A380 super-jumbo. The cancellation of FedEx's entire A380 order has sent shockwaves through the industry, leaving airlines like Emirates Airlines worried about the fate of their own orders. In an interview with CNBC, Marko Lukovic, a consultant at Frost & Sullivan, and President of Emirates Airlines, Tim Clark, expressed their concerns about the A380 production issues and its implications for the industry.

Key Takeaways:

EADS has posted a third-quarter operating loss of $1.28 billion due to A380 production problems.
The cancellation of FedEx's A380 order is a major concern for other airlines, including Emirates Airlines.
Marko Lukovic, a consultant at Frost & Sullivan, believes that there will be no further cancellations of the A380 order.
The majority of Airbus's sales in the third quarter came from Asia, where the A380 has been particularly successful.
Boeing has benefited from the troubles faced by Airbus, but Marko Lukovic believes that Airbus will recover and competition will increase.
As a defense analyst, Marko Lukovic thinks that there will be little change in defense spending under a Democratic-controlled Senate.

Statistics:

$1.28 billion: the amount of charges taken by EADS due to A380 production problems.
100%: the amount of FedEx's A380 order that was cancelled.
50%: the percentage of Airbus sales in the third quarter that came from Asia.
3-6 months: the time period during which Boeing is expected to continue benefiting from Airbus's troubles.
12 years: the length of time that the Republican-controlled Senate has controlled the Senate.
80%: the percentage of procurement cuts anticipated by Marko Lukovic under a Democratic-controlled Senate.

Sources:

CNBC/DOW JONES BUSINESS VIDEO ANALYST INTERVIEW DANIEL MANN, CNBC ANCHOR
Frost & Sullivan
Emirates Airlines