Production Delayed Due To Wiring Problems

This may not be the best way to get along with your launch customers. EADS, the parent company of Airbus SAS, says wiring problems with the mammoth A380 will cut the number of aircraft produced for some of the superjumbo's first customers next year -- from as many as 27, to just nine.

Unfortunately for the European consortium, that may be just the beginning -- as EADS says the problems are serious and the fixes are so extensive that the company now projects losses of up to $630 million a year between 2007 and 2010.

"We expect Airbus management to fully deliver according to the revised schedule and if possible, even to improve (on it)," EADS co-chief executives Tom Enders and Noel Forgeard said in a joint statement.

It's the second major delay in the widespread commercial launch of the A380, although Airbus promises the first of its commercial deliveries will take place as scheduled... to Singapore Airlines later this year (the first SIA plane is shown in flight testing below).

Airbus executives had hoped to deliver as many as 25 aircraft in 2008 and 45 the year after. But in a statement from its co-chairmen... Airbus admits this could lead some customers to cancel orders for the A380.

So far, the European planemaker has written 159 orders for the A380, from 16 airlines worldwide.

FMI: www.airbus.com