Airbus Suffers $1.5 Billion Hit Against Delays to Two Key Models
- Glitches afflict military transport plane, new wide-body jet
- Company needs huge production surge to meet 2016 profit goal
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Airbus Group SE took charges totaling 1.4 billion euros ($1.5 billion) against delays and glitches at two key programs that have left it even more reliant on a second-half production surge to meet annual earnings goals.
The European manufacturer recorded a hit of 1.03 billion euros to fix faulty gearboxes on its A400M military transport, together with a penalty of 385 million euros on the A350 wide-body, deliveries of which have slowed to a trickle amid a shortage of cabin fittings including seats and lavatories.