Airbus shares a little higher amid Delta order, leadership shake-up news

Airbus shares were trading broadly flat, but with a positive bias around midday Friday. Investors were likely mulling over a mixed bag of news. The aeroplane manufacturer announced Thursday it had secured an order from Delta airlines for 100 of its A321neo ACF aircraft. However, Friday brought confirmation of a leadership shake-up, with CEO Tom Enders will leave the firm in 2019, while other key roles will also change.

Airbus shares a little higher amid Delta order, leadership shake-up news

Airbus shares were trading a little higher around midday Friday as investors were likely mulling over a mixed bag of news.

The aeroplane manufacturer announced Thursday it had secured an order from Delta airlines for 100 of its A321neo ACF aircraft. However, Friday brought confirmation of a leadership shake-up, with CEO Tom Enders will leave the firm in 2019, while other key roles will also change.

By 1215 BST, Airbus shares were 0.22% higher at €85.53. That’s below the recent peak of $88.86 achieved by Airbus shares earlier in December.

Delta order win

Just one day ago, Airbus announced it had successfully won a significant order from previous customer Delta airlines. The news represents a win over rival Boeing, with whom Airbus is currently involved in a trade levy-related disagreement.

The Delta order follows previous business between the two firms.

“This is the right transaction at the right time for our customers, our employees and our shareholders,” said Delta CEO Ed Bastian. “Delta, Airbus and Pratt & Whitney share the same commitment to safety, efficiency, innovation and continuously improving the customer experience.”

Meanwhile, Airbus was equally upbeat on the deal.

“We at Airbus are very happy we won this hotly-contested campaign,” said Tom Enders, Airbus Chief Executive Officer. “This important order will further strengthen our partnership with Delta.”

Changes at the top

Despite the good news on the latest major order, Airbus has been rumoured to have struggled with leadership issues. This has appeared to culminate in slightly unexpected leadership change plans.

The airline has confirmed that current CEO Tom Enders will step down when his term ends in 2019. However, rather than being replaced by COO Fabrice Bregier, the search for a new CEO is underway. Bregier, will leave Airbus in February.

Meanwhile, CEO of Airbus Helicopters, Guillaume Faury, will succeed Bregier as commercial aircraft president.

“The Board of Directors is responsible for ensuring orderly succession planning and the continuous development of the executive pipeline,” said Denis Ranque, Chairman of the Board of Airbus.

“We are confident we have taken the right decisions to ensure Airbus’ long term stability and future success and we fully support Tom Enders to lead Airbus through this generational handover with our full support,” Ranque added.

Top Equities Brokers

0 Brokers added for comparison:
Clear all