MH may cancel A380 orders

[Greg Wood 3]

Hi all,

 

A leading aviation writer with ATW has 'inside information' suggesting that Malaysia Airlines will be cancelling there A380 order with Airbus Industrie.

 

What a shame not to see this aircraft in MH colours.

 

Greg

[S V Choong 4]

Is this a definite decision?

 

They have spent loads of money on it they may as well buy the darn thing. After all it is paid for by Pernerbangan Malaysia Berhad, not MAS

[Imran K. 0]

Isn't PMB bleeding as well?

[Kee Hooi Yen 0]

I understand the new hanger for MAS A380 at KLIA is currently under construction......

[Azreen 0]

Ya might aswell cancel the orders if the financial losses associated with the order can be mitigated when cancelling the contract. PMB might even have the same clause as ILFC where the company can cancel the contract without penalties after a 6 month delay. If i was in PMB I would have that clause in my contract.

 

I just don't think MAS is in dire need of an A380 just yet. Boeing offerings will probably be just the right ingredient for MAS.

 

I suspect that policy of buying less"Made in USA" products probably resulted in this unwarranted A380 purchase because there could have been alot of strings attached to the US purchase that the govt didn't want for it could have jeopardized our national security.

 

Ya at the end of the day, who knows ehh? My 2 cents worth.

[H Azmal 0]

Worth remembering that MAS did not acquire the 747 until after 10 years in operation.

[Fitri Shukri 0]

Yeah, cancel the A380 order..... only to order it again in several years time when MH needs it. By that time SQ and TG will already have a headstart (in SEA) with the A380. What shortsightedness if it really happens.

[Y. J. Foo 0]

I may be wrong but wouldn't the cancellation will cause MAS having to compensate Airbus?

 

If that's the case I think they'd better keep having them delivered and lease them to SQ or alike.

[H Azmal 0]

Yeah, cancel the A380 order..... only to order it again in several years time when MH needs it. By that time SQ and TG will already have a headstart (in SEA) with the A380. What shortsightedness if it really happens.

 

I would not chalk that up that to shortsightedness per se, abang Fitri. We are in a situation where we have to face reality - or desperation rather. We are essentially back to square one to that day in 1972, and as it was then I think it's only sensible to postpone the acquisition of the A380, if it makes financial sense now. SIA had the 747 even before they began operations, but situation then permitted them and not us, as is the case now (though now it's because of the folly of some men, rather than inter-country politics). We have to choose between two evils here - not having the A380 or face almost certain financial ruin.

 

Just my 2p.

Edited June 21, 2006 by H Azmal

[Attan 0]

Which sectors are the A380's going to serve? Are these sectors now not being adequately served? If so, will the A380's help to fulfil current demand (not the expected future demand) and at the same time reduce the cost per pax mile? If so, then going ahead with the purchase is a good shot. Until the delivery of the A380's some leasing of B777/B747 may be required to cater for the unmet demand if that is really the situation. The key thing is MAS must not chase their customers away by imposing penalties and surcharges and offering unattractive FFP's as complained by some members elsewhere in this Forum.