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Posted on 06/06/2006 10:59:31 AM PDT by lowbuck
US Airways is taking a relaxed view of Airbus’s indecision on the A350 design, even if it results in the carrier’s order for 20 of the type being scrapped.
In a memorandum to employees, the airline’s president and chief executive Doug Parker says US Airways management understands Airbus “is having internal debate as to whether or not they shouldn’t start over on the A350”. He adds: “If they come back with a new aircraft, great. If they don’t and we don’t have an order any more, that’s fine. The merger’s done and [Airbus has] been paid back, so everyone’s happy.”
Airbus last year agreed a $250 million loan to aid in US Airways’ merger with America West Airlines and emergence from Chapter 11 bankruptcy protection. In exchange, the carrier became the US launch customer for the A350. It signed a firm contract for 20 of the type in a deal that included the deferral of its remaining A330 orders.
In recent months, however, some existing and potential A350 customers have called on the manufacturer to redesign the aircraft to make it more competitive with the Boeing 787.
Not every customer is taking as relaxed a view as US Airways to Airbus’s apparent indecision. Qatar Airways – which has a commitment for 60 A350s – says it is frustrated that the manufacturer will have lost a year in the development programme if it goes ahead with a redesign.
Confirmation by Airbus of the revamp would see the A330-based A350 design succeeded by an all-new aircraft with a wider fuselage and larger wing. This would have an entry-into-service target up to two years later than previously planned.
“At this point, the aircraft exists only on paper, but we are scheduled to take delivery of the first in the 2010 timeframe,” says Parker, noting that the aircraft “will likely replace the A330s and 767s and it’ll do so very economically because the fuel burn alone is some 20% lower”.
US Airways says it is not considering plans to replace the A330s and 767s with the Boeing 787 if the A350 deal is shelved.
“We have an order for the A350 and that’s where our head is at this time. We aren’t going to speculate beyond what might happen with the A350 because it’s simply still in progress,” the airline says. “Airbus is a terrific partner and they are taking the necessary time to consider their options. We’ll wait to hear from them.”
Oh my, when it rains it pours! I think the market is talking, I just wonder if anyone is listening!
If they wait long enough they may not be able to. Boeing does have other customes and their 787 book is filling up fast.
Airbust is tanking.
And those other airlines will get business - more and more people seem to be staying away from flying on Airbus products.
I avoid flying Airbust whenever possible.If you fly somewhere where I want to go and fly Airbusts on that route,it's highly,highly unlikely that I'll book with you if your competition flies Boeing.
Even if you fares are lower.
Yep, but sounds more like they would be almost 'happy' to get out of the order, like they don't really need the additional craft.
You're right though... IF they do need 'em, they better get in ahead of the collapse.
Airbus last year agreed a $250 million loan to aid in US Airways’ merger with America West Airlines and emergence from Chapter 11 bankruptcy protection.
I suspect more negotation to increase the loan amount......
Of course US Airways takes a relaxed view of this development. The A350 order was consideration for Airbus bailing out their merger deal. Now if the A350 is scotched, US Airways gets out from under this deal and can buy the aircraft that best suits their needs (hint, hint: It's not the Airbus A350).
So whatever it cost Airbus to bail out the US Airways merger deal, Airbus is going to have to write off. Off course, they can just bill the European taxpayer for the loss, so they don't really care about that.
Why the European taxpayer does not care is anybody's guess.
There are not enough bad things that could happen to this airline to please me.
If a US Airways employee has the choice to tell you a lie or the truth and the outcome would be the same, I swear they have a company policy that the lie must be told.
Airbus last year agreed a $250 million loan to aid in US Airways’ merger with America West Airlines
Seems like Airbus got suckered on that one. Maybe they should change their name to "Airbus National Bank."
Since you bring it up, do they have any Clintonistas on the BoD?
Probably not, since they had $250M to loan out to somebody that intended to pay them back.
Boeing is considering opening a second 787 line. With the A350 being completely redesigned, they could have the second line up and running before the first A350 is built. Potentially Boeing could start delivering 14 787's per months 2-3 years after the 787-8 starts production.
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I don't like Airbusts. I don't trust them to be safe. I think they use cheap matierials and skimp on quality. If it is not Boeing..I'm not going!
I love those shots, but I always fear that one of these days, a pilot is going to "nose it" into the beach. Or perhaps take out that fence.
Of course there is far more to the beach than just the airplanes. 
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