Air industry reels at A380 delay
By Andrew Champion,WNS France Business Correspondent
PARIS - Leading airlines are assessing their positions following confirmation of further delays to the Airbus A380. Emirates, Virgin Atlantic, Singapore Airlines and Qantas - all due to buy the super-jumbo - have expressed disappointment at the fresh setback. The first A380 delivery has been pushed back to October 2007 but Airbus boss Christian Streiff said all its customers were "still on board".
Shares of parent group EADS were down 7% in morning trading in Paris. Aviation experts said it was unlikely airlines would cancel any orders. However, they said the delays would mean Airbus having to pay out huge compensation and provide a further opening for rival Boeing. EADS, which owns 80% of Airbus, said the delay would wipe an extra 2.8bn euros ($3.6bn; £1.9bn) from its profits over the next four years, on top of the 2bn euros announced in June. It also announced a 2bn euros annual cost savings programme. Airbus will only deliver one A380 aircraft in 2007, having previously promised nine, resulting in mounting losses for parent firm EADS.
Emirates, which has the biggest order of A380 airliners, will see its first delivery arrive 10 months late, and says it is now reviewing its options. Qantas, which will not take delivery of its first A380 until August 2008, said it was "disappointed" by the delay, the third to be announced in the last six months. Singapore Airlines, which is buying 19 A380 planes, said it was reviewing the situation while Virgin Atlantic, which said the delays had "serious implications" for its business, is doing the same. But Airbus insisted that no airlines had yet cancelled any orders.
posted by wnsworld @ 10:44 AM
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