Airbus scraps plans to sell two factories

The Wall Street Journal (5/8, B4) reports, "Airbus scrapped plans to sell two French factories to one of its suppliers," Toulouse-based aeronautical supplier Latécoère SA, thereby "bowing to the global credit crisis for the second time in a month after a similar sale collapsed in Germany." The planemaker "said 'a viable solution couldn't be finalized within the required time frame.'"

Analysts consider Airbus setbacks: On its website, the New York Times (5/8, Clark) reports that the Airbus developments could "eat further into the financial reserves of the parent" company European Aeronautic Defense and Space (EADS). But, said Evolution Securities analyst Nick Cunningham, "Not selling these plants isn't going to kill them." Regarding an announcement from EADS "that it did not expect the" recent events "to affect its forecasts for 2008 operating profit," analysts appeared unconvinced. BGC Partners analyst Howared Wheeldon called the company's Power 8 restructuring plan "a shadow of what was originally intended." Also, some analysts "have criticized Airbus's decision to pursue talks only with European bidders, viewing the move as a capitulation to government pressure to make sure that the divested factories, and jobs, remained in the region."

Airbus A350 nose, cockpit window redesigned: Flight International (5/7, Kingsley-Jones) reported, "Emirates has become the first A350 customer to release images of the XWB with the revamped nose and cockpit window arrangement adopted by Airbus as it refines the aircraft's design." The new nose "dispenses with the dramatic four-window panel layout illustrated on all artists' impressions released of the A350 to date." The design "installs the nose gear bay at the front of the aircraft," and "incorporates a six-windscreen layout that is less of a design departure from the original XWB concept." Flight International added, "The A350 is also the first Airbus to do away with opening direct vision cockpit windows for flightcrew emergency evacuation, with an escape hatch incorporated in the flightdeck roof instead."