Posted on 05/12/2005 7:03:50 AM PDT by Righty_McRight
PARIS (AFX) - Singapore Airlines Ltd (SIA) expects to receive compensation from Airbus SAS should there be a delay to the expected delivery date for the first A380 superjumbo next year, company spokesman Franklin Auber said.
"Contractually, when Airbus is committed to a delivery date, there is compensation for each month it is delayed," Auber said during a press conference.
He stressed that SIA will still be the first airline to take delivery of the A380 in the event of a delay.
"The first four aircraft built are set aside for Singapore Airlines. If our programme is shifted, then those of Emirates and Air France will be too," he said.
SIA CEO Chew Choon Seng said yesterday that the company is expecting to bring the A380 into service in the fourth quarter of 2006 against initial expectations for mid-2006.
He said SIA "hopes to receive it in the final quarter of 2006, but everything depends on progress in the testing programme and in certification".
In total, SIA has ordered 10 A380s and has options on 15 others.
Dubai-based airline Emirates has ordered 43 A380s and is the biggest customer for the plane. A spokesman for the group said it had received no information on a delay and that it still expected first delivery in Oct 2006, for services beginning in November.
He said that Emirates will insist the delivery date is respected, and will have rights to compensation should that prove impossible.
A spokeswoman for Airbus confirmed that SIA's first delivery is expected in the second half, while Emirates will receive theirs "by the end of 2006".
She declined to comment on any contractual obligations regarding compensation for late delivery.
Airbus is 80-pct owned by European Aeronautic Defence and Space Co, and 20-pct by BAE Systems PLC.
LOL. AB cannot get a break.
Ain't called AirBust for nothing.
If they wind up paying penalties on the first twenty units, that is really going to screw up the pay-back projections.
It could be that the A380 winds up being the huge loser for Airbus, financially speaking. That is the problem with quasi-governmental organizations. They cannot resist the allure of the "big idea", even if that idea is disasterous.
Boy, the taxpayers of Europe will have to foot the bill for compensating Singapore Airlines, Emirates Airways and Qantas for A380 delivery delays. And it won't be chump change, either.
I think this is a scam..Airbus promised SA a HUGE discount for being the first to order the plane..but they don't want to ruin their pricing model..so they give the haircut to the airline this waay..
AirBus sold their soul for those early orders, and if they are late(they already are) they are going to kick their asses kicked a thousand ways.
What a shame....
What I'd LOVE to see happen is that the FAA doesn't approve this plane until, say January 2008 . . .
I know it's just a dream, but ...
Being late on deliveries of the 380 may be the least of Air Bust's worries. I have a good friend who works for a company that put in a proposal to do the hydraulic system. His design team met with the Air Bust folks in France on several occasions. They quickly came to the conclusion that with full fuel, the airplane couldn't carry any passengers. The thing was going to be way over the design empty weight. This was confirmed when suddenly the Air Bust designers changed their focus from beating on suppliers on price to "you have to make it as light as possible, regardless of the cost". Hence the substantial cost overruns. Still and all, no one is sure that the plane will be able to meet performance guarantees with respect to costs per seat mile. My bet is that it won't so Air Bust will be faced with a bunch of really upset customers demanding some sort of compensation...for as long as they fly the airplane. Now THAT could amount to a whole bunch. Nice thought, isn't it.
Yeah, but I want to see them SUFFER!!!!!
I would say that it is simply not possible for a project to get to this stage of development with design deficiencies that large.
But we are talking about a French-run government shop here, so I guess anything is possible...
It just doesn't look right to me...
Somehow this doesn't sound like a smart strategy - does the airline actually want the planes to be delivered before they are ready for prime time, with the manufacturer cutting corners to meet an artificial deadline date? What are they willing to sacrifice to ensure timely delivery?
Of course, this article has armed the froggie unions with another powerful weapon. They will now demand "incentives" to keep the project on schedule. But, imagine a whole year without any froggie strikes!
Some communist will decide that there is not enough garlic in the corn flakes and decide to stop production for a week. And, the only way to protest Chirac's rigging of the French EU constitution vote will be labor action. Go get 'em froggie!
If this keeps up expect to see the airlines start to hedge there bets with increased orders of Boeing aircrat.
i don't know what you're talking about ... the wings look great. This Bird is a Dream.
i don't know what you're talking about ... the wings look great. This Bird is a Dream.
...in the executive version or in the 'all-economy' version ?
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