The firm that owns Airbus has decided to go ahead with launching its A350 passenger jet. The board of EADS decided to approve the ten billion euro project, aimed at taking on US rival Boeing in the mid-size jet market.
But analyst Pierre Sparaco says the cost has sparked concerns, amid cash shortages caused by delays in the A380.
“The question is, can EADS find the money needed to absorb the A380 delays and launch an all new aircraft and that’s what they are talking about and have been talking about since the Farnborough airshow in July,” said Sparaco.
EADS said it would cover most of the financing of the A350. There is speculation that the French and German governments could also back the project.
Airbus Union Chief Julien Talavan, said:
“It is essential we launch this aircraft and that our shareholders take a lead role by investing. They have made a lot of money due to Airbus success in the past. Now we have to make this plane, whatever the cost. Otherwise, we won´t be able to take on Boeing on equal terms.”
Delays in production of the A380 prompted some customers to cancel orders. EADS hopes the A350 will relieve the financial difficulties the super jumbo has caused it.
The mid-size A350 is expected to enter into service in 2013.