Tuesday, October 3, 2006

A380 Faces More Delays as Customers Rethink Purchases

Just when the news over at Airbus couldn't get any worse - lagging behind Boeing in the orders count, A380 delays, etc. - it did. Airbus confirmed recently that the A380s scheduled to be delivered to customers will be further delayed due to 'wiring problems'. The planes will be delayed another year.

Emirates, the largest customer of the type, will have to wait an addition ten months for its planes, something that it's president is not too happy about: "It's a very serious issue." Emirates, along with Virgin Atlantic, have announced that they are 'reviewing' their options - meaning that they might order fewer or potentially none of the airplanes.

Airbus earlier had said it would deliver nine A380s next year - a number that's now down to 9. Delays are, in total, two years late - meaning parent company EADS is losing billions. And this comes at a critical time, too, as Airbus tries to regain the lead from archrival Boeing.

Will Emirates really cancel its A380 order like some have predicted? Not likely. The airline has, after all, gained much publicity over its huge A380 order (43 aircraft), which is the largest so far. The second largest order, from Lufthansa, is only 15 aircraft. That said, whether Emirates cancels or not, Airbus is still in quite a bit of trouble for the time being.

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