Airbus delays deliveries of A380 superjet

02 Jun, 2005

Airbus said on Wednesday deliveries of its 21st-century flagship, the double-decker A380 superjumbo, would be delayed by up to six months, taking the flourish off one of the most trumpeted aviation launches in decades. Disgruntled airlines, at least one of which intends to seek compensation, announced the delay in delivering the largest passenger jet ever built just weeks after its maiden flight.
Airbus had already starting preparing the ground for such an announcement - Singapore Airlines, which is due to fly the first scheduled A380 service between London Heathrow and Singapore, first said on May 3 it had been notified of a postponement - and delays to new aircraft are not uncommon.
But it adds to a growing list of headaches at the European aircraft builder as it slides into a major trade dispute over subsidies with arch-rival Boeing and struggles to fill an internal power vacuum created by its squabbling shareholders.
Keeping the 10-billion-euro A380 project on track after cost overruns and now delays will be a major task for the next head of Airbus, who has yet to be appointed after its fiery French boss Noel Forgeard fought to become the next co-CEO of parent EADS.
The world's second-largest aerospace group had given Forgeard and his German counterpart in EADS until June 1 to come up with a list of appointments to put an end to months of Franco-German discord over who should run Airbus. But an industry source said the EADS board was not yet ready to meet.
The job is expected to go for the first time to a German aerospace executive, Forgeard's number two Gustav Humbert.
Singapore Airlines said it would take delivery of the first A380 in the fourth quarter of 2006 instead of mid-year.
Emirates - the biggest customer with an order for 43 planes worth over $12 billion - would also be affected, Qantas said, adding that "manufacturing issues" at Airbus meant it would now receive the first of 12 A380s in April 2007.
Qantas said it planned to seek compensation from Airbus.
"This is disappointing, given that we have met all of Airbus' deadlines for Qantas specifications," Qantas Chief Executive Geoff Dixon said.
In Paris, Air France also reported delays in its order of 10 planes due to be delivered in April 2007.
Airbus confirmed deliveries would be delayed up to six months.
"It can vary but it is up to six months, depending on the serial number (of the plane)," a spokeswoman for the Toulouse-based aircraft manufacturer said, adding that delays were not linked to any serious flaws discovered in test flights.
She declined to comment on the question of penalties.
Industry analysts said it was not clear how much Airbus might have to pay in compensation to airlines for the delay.
Another said penalties may already be built into the 1.45 billion euros of cost overruns already announced by Airbus but that delays could weigh on operating income during 2006.
Airbus contributes virtually all operating profit at EADS, which owns 80 percent of the company. The balance is held by BAE Systems Plc, whose shares rose 1.2 percent to 272-1/2p.

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