Airbus shares plummet after crash

– Shares in Airbus Group fell yesterday after the weekend crash of an A400M military plane increased investors’ anxieties over Europe’s largest and heavily delayed defence project, while the planemaker pledged to overcome the tragedy.

Shares in Europe’s largest aerospace group, which hit a record high in April, fell 3.8% to €61 in morning trading, erasing gains seen in the previous week.

The military plane crashed outside Seville on Saturday, killing four crew and prompting Britain, Germany and Malaysia to ground their fleets of Europe’s new troop and cargo carrier.

France said it would keep flying

Paris

its planes, while Airbus pledged to resume fl ight testing as planned today.

Analysts said the crash raised fresh concerns about deliveries and long-term exports of the A400M, but the company’s chief executive Tom Enders reaffirmed the company’s commitment to the programme as he paid tribute to the crew.

In a letter to staff, Enders said testing would resume as planned today to “demonstrate to our customers, the air forces, that we fully trust this great transport plane and are as committed to the programme and the further ramp-up of deliveries and capabilities as ever”. – Reuters