Last quote by Tom Enders
Tom Enders quotes
This is a lose-lose result for both, Britain and Europe.
I hope the divorce will proceed with a view on minimizing economic damage to all impacted by the Brexit. Britain will suffer, but I'm sure it will focus even more now on the competitiveness of its economy vis-a-vis the EU and the world at large. But of course we will review our U.K. investment strategy, like everybody else will.
We've seen another year of robust performance in commercial aircraft. Our customers, believe it or not – largely thanks to the oil and kerosene price – are globally, financially in very good shape.
The sales process for the defence electronics is ongoing, and we want clarity on the buyer by the end of the year.
Well, as I say it's a combination. I mean we have improved our operational performance particularly in the area of commercial aircraft. We had a very good order intake, almost a record year, the second-best ever, more than 1400 large commercial aircraft. From that comes a lot of pre-delivery payments. That explains the cashflow improvement; As I said, a pretty good year.
I'm 100% happy, it was a pretty good year in 2014, we met most of our operational targets, the commercial momentum was very strong, we achieved major milestones and I think that reflects pretty well in the ebit, in the free cash flow which is very important for us, and certainly in the earnings.
Well, I'm glad you mention the A380s because 2015 is a very important year because this is the year we break even, after 15 years of heavy investment in that plane. That's a major milestone, a success, our teams have worked very hard to get to that day, but apart from the 380 the focus is really on the ramp-up of the new long-range aircraft, the 350 this year and the transition from the old 320 to the new 320 that is really our bread-and-butter business, so we'll have our hands full.
We're not planning new adventures in 2014, the focus is on execution, execution, execution.
Is it good management to wait until you drive into the wall? Or is it good management to be proactive and when you see the wall is coming, you hit the brakes and take measures?
Airbus is two thirds of our revenues, Airbus is the most internationally known brand, whereas EADS was never quite a household name beyond the European nations.
We want to create a company that is internationally much more successful, that draws new investors and there are many examples to prove that companies in this sector and of this size should not necessarily be subject to state involvement.
I can say this plane is absolutely safe to fly. I don't want to go into all the specifics here. Are we learning from this? Absolutely. You heard me talking about taking lessons from the A380 programme for the A350 programme.
It has been a pretty good year. The main reason for our great success in sales was obviously that we offered a new version of the A320, the A320 neo, with considerably less fuel consumption and – guess what? – in a world where oil prices go up and up, the airlines need fuel efficient aircraft and that is behind our roaring success in 2011.
Flying in the past happened literally only in North America, western Europe and south-east Asia: that's about one billion people, but the emerging markets – that's about five billion people – and this is where aviation is just about to pick up, so there is a huge potential and that really is the source for our strong optimism in aviation.
Well it means an incremental order to the A 320neo. We have already an incredible 1,200 orders this year. So we having a great run with NEO. But, not surprisingly, John (Leahy, head of Airbus sales) was just explaining this is a 15 percent fuel burn reduction – that's 30 percent roughly over the real old models – and with the fuel prices up over 100 dollars a barrel, that's a no brainer for our customers.
I mean, it's quite interesting in the first of the year, the Europeans looked at the Arab revolutions and how that could impact business. Now the Arab colleagues are looking on Europe and are asking themselves how that could impact European and the world economy. Overall the situation here is still very, very good.
It's become one of the most important air shows in the world, certainly the most important in the region, the Middle East is a fast growing region. Air traffic is growing above average very clearly and we expect that the Middle East and Asia will remain, for future, for the next 10, 20 years the two fastest growing air traffic regions on this planet.
Last year was much better than initially expected. This has something to do with the recovery of the market and with us improving our development programmes, especially our critical programmes the A400M and A380.
It is good for Airbus, but I think it (the euro at $1.20 dollar) is a fair valuation. Remember when we started with the euro, it was at $1.18, so at $1.20 we are nearly at the origin again.
Let me put it this way, in 2008 – as you've seen – we scored an all-time high in deliveries. I would be quite content if we were able to score deliveries roughly at the same level in 2009.
We've had to learn a lot of lessons – bitter lessons – in the last few years, and now we are stepping up production. It's not working as quickly as we had hoped, nor as quickly as the customers had hoped, but it is a very complex aircraft.
2007 was a record year for the industry, both our competitor and us. We had levels of orders and deliveries never achieved so far.
Because of this we should not act too hastily and only consider personal consequences and changes in procedure at Airbus.
Understandably the British want to achieve an astronomically high price, and understandably we want to pay a fair price.