Mon, Nov 14, 2005
Launch Customers Will Receive Price Breaks On First
Airbus has finally announced its plans to compensate its A380
launch customers -- Singapore Airlines, Malaysian Airlines, and
Qantas -- for delays encountered in the startup of production of
the super-jumbo jet.
Delivery of the first production-spec A380s, originally slated
for early 2006, has now been put off until almost a year from now
-- with SIA slated to receive the first production A380. However,
the delay is causing that airline, as well as Qantas and Malaysian
Airlines, some aggravation.
To alleviate their concerns, Airbus will pay... but they're not
saying how much.
"Remember, the airplane costs about $285 million a copy, so I
think it is safe to say we are talking about a couple of million
dollars," said Airbus Chief Commercial Officer John Leahy, as
reported in Bloomberg. "But let's not get into detail; that's
confidential between us and the customer."
That should help cool heads at those airlines, at least for a
little while. Qantas has orders 12 of the aircraft, while Singapore
Airlines has 10 firm orders on the A380 and options for 15
As was reported in Aero-News last week, a
proposed tour of those countries was delayed so Airbus could swap
out two Trent 900 engines on the tour aircraft, the first test
A380. While a positive spin was put on that delay at
the time by SIA, the likely price break probably helped a
In all, Airbus reports 159 firm orders for the super-sized
airliner -- capable of seating 555 passengers in "standard"
configuration -- with another 100 options.
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