Delays For A350 May Cost Sales

Is Airbus set to announce another program delay? We've all been watching as the European plane maker struggles to get the A380 program back on track, it's now two years behind schedule.

Last week ANN reported rumors in the media had other Airbus projects falling behind as well, specifically the A350, and the military transport A400. Tuesday, the London Times reported A350 deliveries, like the A380, may slip as much as two years.

Citing senior figures in the aviation industry, the Times says it's now accepted internally within Airbus the first A350s will not be delivered in 2012, but in late 2013 or even 2014.

If that's the case, the news couldn't come at a worse time for Airbus. British Airways, BA, just announced a competition to replace its fleet of aging long-haul Boeings, and it wants to start taking deliveries in 2009.

The carrier has already notified Boeing, Airbus, and engine manufacturers GE and Rolls Royce. The airline expects to get proposals by the end of the year.

BA says it'll replace 20 747s and 14 767s first -- they're approaching 25 years old. Eventually, the carrier will replace it 747-400s, 777s, and 767-300s... 114 aircraft in all.

According to Reuters, BA says it's looking at Airbus's A330, A350 and A380s and Boeing's 787, 777 and 747-8s. Industry experts estimate BA's order at a minimum of $7 billion.

What's worse for Airbus, analysts predict that BA will strongly resist any temptation to split its order between manufacturers -- whichever manufacturer get the contract will likely get the entire order.

And that's too bad for Airbus, because there's not another company out there in more dire need of good news right now.

FMI: www.britishairways.com