Tuesday, 12 May 2015

Airbus shares collapsed after fatal incident in Sevilla this weekend


The Airbus’s A400M aircraft  crashed this weekend in Sevilla,Spain during a test flight just 15 minutes after takeoff. Four of the six crew members died and two others were seriously injured and rescued from the burning wreckage.
In late 2001, European defense ministers signed a contract for production of 200 military transport planes A400M model in order to replace ageing military aircrafts. Development work on this project suffered a series of escalating costs and delays.
On Monday investors reacted negatively to the development process. The share price of Airbus declined by over 4% on the Frankfurt Stock Exchange. Securities traded in Paris depreciated by about 5%.
Because of the accident the engine supplier MTU also is incurring losses, whose shares depreciated by 1.5 percent. In 2007 MTU was indicted for the delay in the supply of machines and for the slow development of the engine.

Airbus seems to be haunted by bad luck. Recent months there have seen a series of accidents. In late December  aircraft type A320 of AirAsia crashed. At the end of March Germanwings A320 was overthrown by its pilot in the Alps.

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