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Airbus shares slide after A400M crash


Airbus shares slide after A400M crash


Airbus shares were battered down from their all-time April high on Monday following the fatal A400M crash in Spain at the weekend.
Shares fell by 4.5% at one point, wiping out the previous week’s gains.

“It will undoubtedly have a negative effect on the share price for a brief period of time but the fact that they’re getting to a situation where they can iron it out before full production levels are hit is arguably a benefit here,” says market analyst Alastair McCaig.

The A400M project has been beset with problems from the start, and following the crash several clients have frozen their orders.

“Well there’s no denial that its nearly four years behind schedule, it’s €6bln euros over budget, that’s a lot for any program but all aircraft programs have a problem, particularly military ones where the end customer base is governments,” says Defence & Aerospace analyst Howard Wheeldon.

Shares finished the day 2% off. In March Airbus Spain fired its boss, who was deemed responsible for the delays in assembling the planes in Seville.

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