The Airbus Group is selling its defence electronics in Germany and said a deal can be expected before the end of December 2015 as it will be finalising the buyer in a few days.

According to strategy chief of Airbus, Marwan Lahoud, half a dozen candidates have been shortlisted for the final selection. The sale is part of its divestment plan to focus more on civil and military aeronautical and space assets, as defence spending is dwindling in Europe. One more reason is the smaller scale of its defence electronics compared to other players. The division has combined revenues of around US$2.18 billion (AU$3.4 billion), reported Reuters.

Meanwhile, Airbus Group Chief Executive Tom Enders said in a year end briefing that his company stands by the A380 superjumbo, which is facing some struggle in sales. He said more sales are expected in the months ahead. The CEO ruled out any immediate decision on a possible upgrade.

Upgrade of A-380

Airbus is already talking to Dubai's Emirates after it requested a re-engined version of the A 380, which is the biggest jetliner in the world. It is expected that the July 2016 Farnborough Airshow will see the launch of the neo A 380. Emphasising that the group will not build an aircraft for just one airline, the CEO said the business case should justify the margins.

“Already more than a year ago, I established clear criteria for the A380neo: we need a clear business case to be met and we want more than one customer, and we are looking at that in cold blood,” he said.

Enders also said Airbus may miss the target of delivering 15 A350s in 2015 by a whisker—it will be short of one aircraft because of the delays in cabin equipment. One of the suppliers, France's Zodiac Aerospace confirmed that there is delay in delivering toilets for the newest passenger jet.

Outlook for 2016

Regarding the outlook for 2016, Enders said Airbus Group would focus on addressing the challenges in ramping up the production of A320-neo and will strive for a four-fold boost in the output for the A350.

The aircraft manufacturer is also trying to deliver the first A320neo before 2015 draws to a close. The aircraft may be handed over to Lufthansa on Dec. 22, reports Aviation week.

At the leasing front, Airbus will be sealing a government-approved deal to lease five A330 wide-body planes to South African Airways. It has asked the SAA to send a legally-binding letter of agreement signed by the airline and the Treasury by Dec. 21 to confirm the lease arrangement, reports Sbeta News.

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