Airlines put Airbus on watch
By Russell Hotten
(Filed: 22/09/2006)
Airbus was dealt a further blow this morning after two more airlines threatened to review their orders for A380 superjumbos.
advertisementSingapore Airlines and Qantas have joined Emirates in seeking clarification from the planemaker about the impact of new production delays, announced yesterday.
Emirates said yesterday its $13.5bn (£7.2bn) order for 43 superjumbos - the world's biggest for a civil aircraft - was "up in the air" until Airbus clarified when the aircraft could be delivered.
Qantas said this morning it was considering its options with respect to its order of a dozen A380s. Chief financial officer Peter Gregg said: "We have anticipated further delays. We will finalise our own fleet plans once we know the full extent of the delays."
Singapore Airlines, set to be the first carrier to fly the A380 super jumbo, is also seeking clarification. Delivery of the first of 10 double-decker A380s, the biggest commercial airliner ever, was to be made by the end of the year.
Singapore Airlines' vice president of public affairs, Stephen Forshaw, said: "We're in contact with Airbus concerning the announcement EADS has made. We're now waiting to hear some firm details from them about the delays and how they will impact on us."
The A380 is already a year behind schedule and yesterday Airbus again blamed problems with the wiring for putting back delivery dates a third time. However, Christian Streiff, the chief executive, said it would be another four weeks before Airbus could tell airlines the extent of the new delays.
Airbus is already paying millions of pounds in compensation to airlines because of two previous delays. Qantas, with 10 A380s on order, is thought to have agreed penalty fees of A$103m (£41m).
But Emirates is the first A380 customer to hint that an order was threatened because of the delays. Valerie Tan, the Emirates spokesman, expressed frustration at the setback, saying yesterday: "Things are up in the air right now. It's hard for us to say."
However, Tim Clark, the Emirates president, later rejected speculation that the whole order might be cancelled. He said: "Emirates awaits clarification from Airbus as to when the rescheduled delivery dates are going to be, and has taken no position with regard to cancellation, compensation and damages. Emirates is concerned primarily with establishing when the aircraft will be delivered."
One aviation analyst said that Emirates, originally due its first A380 next month, "was so angry that it might cancel a couple of planes to send a message".
The cancellation of any aircraft would be embarrassing for Airbus, and open the door for Boeing. Dubai has ambitious growth plans and needs the 555-seater A380s to fly in millions of tourists and business people each year.