Airbus's Guarantee to A340 Buyers Could Cost It $2 Billion

The aircraft maker guaranteed the resale values of many of its A340 widebodies. Bad move
Photo illustration by 731; Plane: Courtesy Airbus; Balloons, Flags: Getty Images(3)

Two years ago, Airbus stopped manufacturing its A340 passenger jet, a four-engine widebody suited to flying extra-long routes including Los Angeles to Singapore. While the production line is a memory, there’s one thing that can’t be forgotten: promises the aerospace giant made to many buyers that the jets would hold their value or it would make up the difference. Now, after watching prices of used A340s slide for years, Airbus is scrambling to persuade customers they didn’t buy a white elephant.

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