Airbus 'Superjumbo' Deliveries Delayed

Yahoo News ^ | Wed Jun 1, 1:24 PM ET | LAURENCE FROST

[Nachum]

PARIS - The Airbus A380 may have overcome its weight problem, but the full cost of beating the bulge looked set to mount Wednesday as the European plane maker confirmed delivery delays of up to six months.

"We've now spoken to A380 customers and told them how they will be affected," Airbus spokesman David Velupillai said. "The delays range from two to six months depending on the customer."

Airbus, which is betting on the A380 to maintain the lead it took over U.S. rival Boeing Co. in 2003, had warned launch customer Singapore Airlines Ltd. in April that it would receive its planes late next year instead of in March. Singapore CEO Chew Choon Seng has since said he plans to demand compensation.

But the Toulouse-based plane maker conceded Wednesday that the delay could affect other A380 customers, after Air France-KLM Group, Emirates and Australia's Qantas Airways Ltd. said they too were expecting their superjumbos late.

Qantas said its 12 new A380s will arrive six months late because of "manufacturing issues," and confirmed it will be seeking financial redress.

"This is disappointing, given that we have met all of Airbus' deadlines for Qantas specifications," said CEO Geoff Dixon.

Emirates said it did not yet know how late its A380s will arrive but hinted that it would be seeking compensation. "We will expect Airbus to fully meet its obligations in accordance with the contract between our two companies," the Dubai-based carrier said.

Shares in European Aeronautic Defence and Space Co., which owns 80 percent of Airbus fell as much as 2.2 percent in early trading before recovering to close just 0.3 percent lower at 23.97 euros ($29.31). BAE Systems, which owns the remaining 20 percent of Airbus, closed 1.5 percent higher at 2.73 pounds ($4.97) in London.

Like most new airliners in development, the A380 struggled to keep its weight down and meet ambitious specifications promised to customers. Final assembly line director Jean-Claude Schoepf and his engineers sent parts back to the drawing board to be pared down, and even the paint was redesigned.

Confounding earlier reports that the plane would be 5 percent overweight, the A380 finally weighed in empty at 309 tons — just 1 percent over its original working target.

But the design challenge, as well as a decision to produce more freighter versions, contributed to a cost overrun estimated by Airbus CEO Noel Forgeard at 1.45 billion euros ($1.77 billion).

Airbus declined to comment on its exposure to compensation claims, insisting the terms of its sales contracts remain confidential. But it played down their potential impact on the program's profitability.

In any aircraft program, Velupillai said, "deliveries begin slowly in the early years and pick up pace later on so the effects will be limited."

He also refused to say how many of the A380's 15 existing customers were affected by the delays. "Clearly the early customers are more likely to be affected than the later ones," he said.

But Deutsche Lufthansa AG, which had not been expecting its first A380s until late 2007, said it too had been warned that they may arrive later.

"In a general way we have been told, but for the specific amount of time of possible delay we were not given any details," said Lufthansa spokesman Michael Lamberty.

Air France has also postponed its planned April 2007 launch of A380 services because of the production setback. "Airbus has advised us that there will be a delivery delay," said a Paris-based spokesman for Air France-KLM, which groups the merged French and Dutch carriers Air France and KLM. He declined to discuss compensation.

[Righty_McRight]

This sure does beat a barge.





SEATTLE, Feb. 22, 2005 -- The Boeing 747 Large Cargo Freighter will transport major assemblies for the 787 Dreamliner – such as the fuselage section shown here – from suppliers worldwide to Everett, Wash., for final assembly. Moving major 787 assemblies by air to the 787's Everett, Wash. final assembly facility could save 20 to 40 percent compared to traditional shipping methods, and reduce delivery times to as little as one day from as many as 30 today. Such savings will allow Boeing to recoup its initial investment in the 747s during the first few years of 787 production. The specially modified 747-400s will return to service in 2007 to support final assembly of the first Dreamliners.

[hoagy62]

As yet, I do not believe it has gone through the passenger tests. It should be VERY interesting to see how they can get the number of passengers it claims to hold off safely

Or maybe...IF they can.

[ryan71]

Just damn!

Terrible news!

Drop the wimpy French short work week and they still can't deliver.

I'll bet after 6 months, it's delayed again.

[KneelBeforeZod]

wow, if this causes some increases in orders for boeing, I hope their factories in china can stop up production!

[Jagman]

Even the name of the enterprise sucks -- who wants to fly on an airbus? Of course, the onomatopoeia of 'Boing' (silent e) isn't too encouraging, either.

[JohnLongIsland]

that's the biggest yugo i've ever seen

[SC Swamp Fox]

"If they want to go down the Eurinal of history clinging to their unaffordable welfare state, their 30-hour work weeks, 10-month work years and seven-year work decades, that's up to them."~Mark Steyn

[26lemoncharlie]

Didn't the French build some boats for a country then renig on the delivery??! Sounds like another SCAM by the Slick Willie French!!

Boing built a huge factory in the uS to build the 747! Why are they now sending these jobs overseas just to bring the BIG CHUNKS back for assembly?? The New World Socialist Order!!!

Yes these production sounds like the Great Russian production lines that failed miserably. What a great plan!!
Let's do what has failed over and over again so we can be an Economical Balance to the Great Enemey The US!!!

Their Stupid!!!

[TalBlack]

"I have had my doubts about this plane for awhile."

I'm thinking the AirWhale may be Concord redux. The Euros built the damn thing for bragging rights rather than because they ciphered out a good business model.

[dila813]

test still pending

[headstamp]

Super Guppy!

[RckyRaCoCo]

Here's an artist rendition of folks waiting for their luggage.

[Brian Allen]

<< "I have had my doubts about this plane for awhile."

I'm thinking the AirWhale may be Concord redux. The Euros built the damn thing for bragging rights rather than because they ciphered out a good business model. >>

I'm thinkin' you're spot on!

The "flying" Petronas Towers.

[Petronas Towers has an effective 25% occupancy]

BUMPping