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Europe
Airbus faces fresh hit over super-jumbo
2006-10-08
Emirates, the leading launch customer for the Airbus A380 super jumbo, is demanding £150m in compensation for delays to the crisis-hit programme.

Tim Clark, president of Dubai-based airline Emirates, which has ordered 45 A380s, made the claim in talks with Airbus management last week following the announcement of a third postponement of deliveries of the world's largest passenger jet. It is also understood that Sir Richard Branson's Virgin Atlantic is claiming more than £20m in compensation for delays in its order of six A380s, while Australian carrier Qantas has announced it wants £40m.

The Virgin board meets on Thursday to discuss its options for dealing with the hold-ups, which have pushed deliveries back by two years. The alternatives under consideration are: cancelling all or some of the orders; deferring them; or switching A380s for other Airbus planes. Last week, Airbus parent EADS announced that technical problems with the wiring would now leave airlines waiting two years longer than they had planned before receiving their aircraft, adding that the problems with the programme would hit profits over the coming years by £3.25bn.
Posted by:lotp

#7  And yesterday, Rolls-Royce announced they were stopping work on the A380's engines.

"We are now introducing the brand-new model A380 GLIDER!"
Posted by: Zenster   2006-10-08 17:31  

#6  ...And yesterday, Rolls-Royce announced they were stopping work on the A380's engines.

Can we have the fat lady graphic, please?

Mike
Posted by: Mike Kozlowski   2006-10-08 12:13  

#5   I'm not an economist but giving your customers large sums of money instead of goods and services they want sounds like a shaky business model.

Use the money to buy two smaller aircraft, it's a bonus as it's very difficult for one airplane to go in two different directions at the same time.
Posted by: Redneck Jim   2006-10-08 09:05  

#4   I'm not an economist but giving your customers large sums of money instead of goods and services they want sounds like a shaky business model.

I am, and you are correct.
Posted by: Shipman   2006-10-08 08:49  

#3  The next dot com boom will be when the first A380 Arab Emirates Airlines takes deliver on crashes.
Posted by: Nimble Spemble   2006-10-08 07:36  

#2  I'm not an economist but giving your customers large sums of money instead of goods and services they want sounds like a shaky business model. Maybe they could append 'over the Internet' to their business plan and call it the next .com boom.
Posted by: SteveS   2006-10-08 06:46  

#1  Emirates, the leading launch customer for the Airbus A380 super jumbo, is demanding £150m in compensation for delays to the crisis-hit programme.

Shit! I should have ordered a few of these Euro-Whales myself. I'd be set for life!
Posted by: Zenster   2006-10-08 04:55  

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