Airbus Group NV officially revealed that it is upgrading its 20-year old A330 jet at the Farnborough Airshow yesterday. The company is to equp the jet model with new engines in order to meet the competition of its major rival Boeing Co. and its newer 787 Dreamliner.
The Chief Executive Officer of Airbus Group NV – Mr. Tom Enders commented in the statement, which was cited by the Financial Times: “The A330 is a very important margin contributor for our group . . . with our decision to re-engine the plane, we will keep the A330 flying high for more years to come.” Mr. Enders added: “We have a very good business case, and the A330 Neo, once in service, will continue to significantly contribute to our group’s earnings.”
According to the information revealed by the company, Airbus Group NV is to invest about 1.4 billion dollars on the engine upgrade of its A330 passenger jet, aiming to prolong the life of its top-selling widebody aircraft. The company promises 14% efficiency gains by improving the aerodynamics of its A330 jets.
The announcement puts an end to the months of rumours and speculations about the A330neo model of the company. In addition, Airbus Group NV is aiming to compete better with the more technologically advanced Dreamliner of Boeing Co. that is also known for its better fuel efficiency.
As reported by the Wall Street Journal, Airbus Group NVs Chief Executive Officer Mr. Enders also shared: “With our decision to re-engine the plane, we will keep the A330 flying high for many more years to come. The “neo” in the name stands for “new engine option.”
Airbus Group NV was 0.38% up to trade at 47.32 euros per share by 8:34 GMT, marking a one-year change of +13.09%. According to the information published on the Financial Times, the 25 analysts offering 12-month price targets for Airbus Group NV have a median target of 60.00, with a high estimate of 73.00 and a low estimate of 30.50. The median estimate represents a 27.36% increase from the last price of 47.11.
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