It's official: 2006 was worst year ever for Airbus

By Thomas Lifson

EADS, the parent of Airbus just released its earnings for the year 2006, prompting its co-CEO Louis Gallois to say,

"It is clear ... it was the worst year for airbus in its life,"

Or, as I put it almost a month and a half ago,

"If Queen Elizabeth II were to describe the year 2006 for Airbus, she would surely call it an annus horribilis."

Yesterday's good news of the first order for its planned competitor for Boeing's hottest selling new airliner ever, the 787, won't result in an actual delivery of an airplane until 2014 - assuming all goes well (as it disastrously has not for the super jumbo A380). This gives some idea of the difficulties ahead for the company.

There aren't any promises of a quick recovery:

Co-chief executives Tom Enders and Louis Gallois said the results were hampered by Airbus, but predicted a recently announced restructuring plan would help return the unit to profitability.

"It will take some time, but Power8 will make Airbus substantially more integrated and efficient," the pair said in a statement. "For 2007, our priorities are to drive operational improvements, restore the group's credibility and build a leaner and more dynamic EADS."

The wave of strikes which greeted Power8 this week do not auger well, but perhaps the bad news will sober up the unions and gain acceptance of the reality that the company is in deep trouble. Of course, the statements by both candidates for the French presidency supporting injecting state funds to save the company will do nothing to accomplish this necessary realism.

The Airbus drama will continue.