SINGAPORE, 23 September 2006 — Asia Pacific carriers led by launch customer Singapore Airlines grappled with further delays yesterday in getting their Airbus A380 super jumbo planes into the air, with Korean Air vowing to seek compensation for the latest setback.
At the same time, none seemed ready to call it a day and cancel orders for what many analysts believe is an aircraft that could radically change the dynamics of the airline industry. “We are disappointed at the delays. It causes concerns for us,” Korean Air spokesman Shin Jin-chul told AFP. “But cancellation of the contract is out of the question. We will only ask for compensation in accordance with the contract,” the spokesman said.
Korean Air is buying five of the double-decker planes. Delivery of the first two had previously been postponed until early 2008 and are now expected to be pushed back further after European aerospace group EADS admitted Thursday that its A380 program faced further delays. “Continuing industrialization challenges with the wiring of production aircraft have been identified and are being tackled,” EADS said in its statement on Thursday. “Consequently, from what is known today, there will be further delays.”
SIA is still set to be the first airline to fly the A380, the biggest commercial airliner ever carrying up to 840 passengers, with the first of an original order of 10 supposed to arrive by the end of the year. “We’re in contact with Airbus,” said Stephen Forshaw, SIA’s vice president of public affairs. “We’re now waiting to hear some firm details from them about the delays and how they will impact on us.”
Tom Ballantyne, the chief correspondent of industry publication Orient Aviation magazine, said the delays will impact airlines which will have already made plans on routes, aircraft replacement and launch dates. “It’s a very complex business which means that they will have to make other arrangements,” he told AFP. While the delays will give Airbus “a bad reputation” in terms of meeting delivery, it is not unusual for teething problems to happen, especially for a brand new aircraft like the A380, he said.
“There’s nothing wrong with with the airplane. (The delay) has nothing to do with the performance of the aircraft. It has to do with difficulties in the production line because it’s such a complex aircraft,” Ballantyne said. “Different airlines want different things so this has caused big problems,” he said, adding that he does not expect any deal cancellations as compensation for such delays are covered under contract.
Emirates, which has the largest single order for 43 A380s, said the deal stands despite the latest EADS announcement and it is waiting for a final schedule of deliveries to be announced within four weeks.
For its part, Australian flag carrier Qantas said it would consider its options with respect to its order of a dozen A380s once it knew the full extent of the latest delays.
“We have anticipated further delays. We will finalize our own fleet plans once we know the full extent of the delays,” said Qantas Chief Financial Officer Peter Gregg.
Another Asia Pacific carrier, Malaysia Airlines, has agreed to purchase six A380s, of which three were to have been delivered originally in 2007 but had made no immediate comment yesterday.
The giant A380 is of vital importance for Airbus as it is locked in a fierce battle for orders with US rival Boeing but despite the problems, it got a major boost in July when SIA agreed to buy nine more of the planes, with an option for six more.
