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Airlines

Airbus Faces Lawsuit Over Air France Crash and Navigate Industry Shifts

Strategic Insights

— 2 min read

Airbus is facing a lawsuit from relatives of passengers who died in the Air France crash in June, with a US lawyer alleging the Airbus A330 was defective and unreasonably dangerous. Meanwhile, the company's sales chief, John Leahy, is determined to stay and help Airbus recover from the current downturn in the global aviation market, despite speculation about his potential involvement in a bid to buy Los Angeles-based plane leasing giant International Lease Finance Corporation (ILFC). The crisis comes as Airbus is still hoping to hit its target of 300 plane orders for 2009, but faces significant challenges in the fourth quarter.

Key Takeaways:

  • Airbus is facing a lawsuit from relatives of passengers who died in the Air France crash, with a US lawyer alleging the Airbus A330 was defective and unreasonably dangerous.
  • The lawsuit was filed on behalf of eight of the 228 passengers who died, including parents, spouses, and children of the victims.
  • John Leahy, Airbus' sales chief, has denied any involvement in a bid to buy ILFC and has expressed his commitment to staying with the company despite speculation about his potential involvement.
  • ILFC is seen as one of the most powerful players in the aviation industry, but its future is uncertain due to the financial difficulties of its parent company, American International Group (AIG).
  • Airbus is still hoping to hit its target of 300 plane orders for 2009, but faces significant challenges in the fourth quarter with over 150 orders still to fill.
  • The company is also dealing with the late delivery of the A400M troop transporter, which has been mired in cost overruns and delays.
  • A compromise is being discussed that could see deliveries of the A400M spread over a longer period, easing pressure on arms budgets.

Statistics:

  • 228 people died in the Air France plane crash in June.
  • 8 of the relatives of the victims are seeking compensation in the lawsuit against Airbus.
  • 150 orders still to be filled in the fourth quarter.
  • 300 plane orders target for 2009.
  • 6,500 people employed at the Airbus factory in Broughton, Flintshire.
  • 1,000-strong fleet of planes owned by ILFC.
  • 2007: Jean-Paul Gut, a former senior official at Airbus parent EADS, left the company.
  • 2009: Airbus' current challenge in meeting its target of 300 plane orders.

Sources:

  • Floyd Wisner, the aviation accident lawyer, said in an interview.
  • John Leahy, Airbus' sales chief, said in an interview.
  • Jean-Paul Gut, a former senior official at Airbus parent EADS, said in an interview.
  • Reuters, citing a report from France.
  • BBC News, citing a report from the US government.

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