Airbus Takes $500M Hit as A220 Ramp Slows

Airbus is optimistic about winning strong A220 sales from ongoing campaigns, CEO Guillaume Faury said on Thursday. He must be desperate, because the program’s business case is far from positive, according to Airbus’s financial statements.

The airframer recognised a $500 million impairment related to the program’s intangible assets. “The impairment was primarily triggered by significant updates to the program’s long-term business case. The recoverable amount of the tested assets was determined using a value-in-use methodology. Cash flow projections used for the impairment testing are mainly impacted by the acquisition of certain Spirit Aerosystems businesses with a revision on the projected costs of production and the A220 updated production rate trajectory”, it says in the financial statements.