Cobhams signs second big deal with Airbus

Aerospace and defence firm Cobham has bagged a communications contract with Airbus worth up to £136 million.
Airbus aircraftAirbus aircraft
Airbus aircraft

The deal will see Cobham kit out Airbus’s single-aisle and long-range aircraft with air to ground communications technology from 2018.

The deal will seem them provide aircraft with technologies which also permits data contact between aircraft and control centres on the ground.

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It will also supply electronic flight bags, in-flight entertainment and cabin distribution equipment.

The deal follows Cobham signing a separate contract earlier this month to provide new radio and audio services, thought to be worth several hundred million pounds.

News of the latest deal sparked a two per cent rise in the company’s share price upon the opening of trading.

Eiji Kawaishi, senior vice-president of Cobham, said: “This is the second major contract won with Airbus in two months to equip their A320neo aircraft family.

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“We are extremely proud of the confidence shown by Airbus in awarding Cobham this dual selection.”

In April, Cobham was forced to launch a £500 million emergency rights issue to prop up its balance sheet following a profit warning.

Cobham said the move was aimed at mitigating the risk of its debt to earnings ratio rising above 3.5 times its earnings.

Profits had declined by 70 per cent for the first quarter, with two of the firm’s senior directors having been dismissed.

A FTSE 250 company, it was founded by Sir Alan Cobham in 1934 at RAF Ford in Sussex before moving to Dorest in 1947.

It has accrued three separate Queen’s Awards for Enterprise.

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