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Emirates Yet To Speak To Airbus On A380 Concerns

 

October 27, 2006

The biggest buyer of the world's biggest airliner, Dubai-based carrier Emirates, said on Friday the Airbus A380 was 5.5 tonnes overweight in addition to two years behind schedule.

 

However, it has not yet started negotiations with the plane maker regarding these issues, Emirates President Tim Clark told reporters while visiting a new lounge at London's Heathrow Airport designed to handle Emirates' A380s.

 

Emirates has 43 of the USD$300 million Airbus A380 superjumbo on order and has been a vocal critic of plane maker Airbus, which is running two years behind schedule on the plane after encountering problems in installing their wiring.

 

The airline's first A380 is now expected to be delivered in August 2008, which will force it to lease other aircraft in the interim.

 

Clark said he plans to lease seven Boeing 777 planes and will hold onto them for 10 to 15 years, giving himself some insurance should there be any further delay to the A380 schedule.

 

"It would be foolish to say we do not expect anything further," Clark told reporters when asked if the third and most recent delay in the A380 would be the last.

 

Airlines angered by the delay have demanded late-delivery fees from Airbus and some have threatened to cancel their orders.

 

Clark said cancellation was one of many options open in the negotiations but stressed that Emirates had not yet engaged with Airbus on this issue.

 

Emirates was set to send its own eight-person audit team to Airbus manufacturing facilities in Toulouse, France and Hamburg, Germany, to assess how realistic the plane maker's latest proposed delivery schedule is, he added.

 

Two of the planes ordered by Emirates were to be freighter versions but the airline decided earlier this year to take the two as passenger models instead.

 

Emirates also balked at taking delivery of 20 Airbus A340-600 HGW (high gross weight) aircraft earlier this year in the wake of the plane maker's plans for a new model, the A350, which could eclipse the A340.

 

Emirates is looking for as many as 100 mid-sized, long-range planes, with the A350 or Boeing's 787 the main contenders for a deal that could be worth USD$15 billion at list prices.

 

(Reuters)

 

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Emirates is looking for as many as 100 mid-sized, long-range planes, with the A350 or Boeing's 787 the main contenders for a deal that could be worth USD$15 billion at list prices.

 

 

:blink: :blink: :blink:

Emirates is really rich..Envy envy :rofl:

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An interesting twist in the A380 saga has unfolded over the weekend.

 

VS has deferred delivery for up to 4-5 years of its A380 fleet citing the problems at Airbus with the A380 on a variety of industrialisiation and technical issues. VS has said that they will let Airbus sort out the problems with the A380, and ease pressure on Airbus to produce the aircraft - compensation has also been discussed I believe. An interesting point, VS estimates that the "running-in" problems on the A380 will be sorted in 4-5 years time, which coincidentally meets their new schedule :)

 

Meanwhile, Qantas! They've committed to another 8 A380s (from their option of 12) bringing their firm order for the type to 20 airframes! Qantas has said that they are happy with the progress of the A380 and the problems faced by way of industrialization will not hamper the technical capabilities of the aircraft. They have also ordered 4 more A330-200 (I found that interesting given all the existing A330-200s are bound for Jetstar International) and 5 737-800s to replace older 734s that will be sold or converted to dedicated freighters.

 

AND Alas! Emirates is upping the ante on what I like to term its "public disapproval campaign" of Airbus by cancelling their orders for 10 A340-600s!!!! AND! To rub salt in Airbus' wounds, Tim Clark and gang have decided to look at the B748 to "complement" the A380 fleet! :rofl:

 

here's a quote:

 

“The A340 is starting to move away from what the market wants...The [A380] delay is a massive revenue loss for Emirates but we're in no rush to demand compensation or cash back at this stage. We just want the aircraft. We are looking at the new B747 anyway to supplement our A380 order, not to replace it,” Tim Clark, President. Source: Singapore Business Times/Trade Arabia, 30-Oct-06.
Edited by Sandeep G

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Latest from News.au

 

By Steve Creedy

October 30, 2006 12:00am

 

QANTAS has taken advantage of the problems at European manufacturer Airbus to lift its A380 fleet by eight of the giant planes in a 12-aircraft order with a sticker value of nearly $3 billion.

The upgrade of the airline's A380 fleet from 12 to 20 aircraft will be accompanied by the acquisition of four A330-200 aircraft, which will be delivered from December next year to help offset a capacity shortfall caused by the giant plane's two-year production delay.

 

The Airbus planes are in addition to a decision by Qantas to buy five more Boeing 737-800s with a list price of up to $US75 million ($97 million) each and a previously announced order for up to 115 Boeing 787s.

 

"We're going to have a much more uniform fleet of aircraft further out and all of them with the best technology," Qantas chief executive Geoff Dixon said yesterday.

 

Mr Dixon said the A380s would be delivered between 2008 and 2015 and deployed on dense, long-haul routes to the US, Britain and Continental Europe.

 

He also hinted that the flying kangaroo might also start up services to Middle Eastern destinations such as Dubai once the big jet gives it the capacity to fly there non-stop.

 

He said the airline had negotiated an "attractive package" of outright purchases and operating leases to firm up the A380 order.

 

But he would not reveal the overall cost of the package, saying simply that all costs would be met by operating cash flows.

 

However, the airline will have received significant discounts on the sticker price because of the inconvenience of the two-year delay in its A380 deliveries and the fact Airbus now has to sell many more planes to break even on the superjumbo project.

 

Qantas initially ordered 12 A380s with an option for 12 more and Mr Dixon said yesterday the airline had always intended to acquire more of the double-decker planes. "Twelve is just not a viable fleet and we always intended to go firm with the options ... it's a very good package," he said.

Mr Dixon said the A380 and the 787 both had operating costs up to 20 per cent lower than existing planes. They would form the nucleus of the Qantas and Jetstar fleets out to 2015.

 

The airline did not see Boeing's 747-8 stretch jumbo jet as an alternative.

 

 

What i dont really understand is, what did the article actually mean by saying that Qantas has taken advantage of the problems at Airbus by ordering another 8 more aircrafts. Anyone able to explain how did Qantas actually take advantage of the problems to order another 8 when all other airlines are reviewing their orders and some thinking of cancellation?

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What i dont really understand is, what did the article actually mean by saying that Qantas has taken advantage of the problems at Airbus by ordering another 8 more aircrafts. Anyone able to explain how did Qantas actually take advantage of the problems to order another 8 when all other airlines are reviewing their orders and some thinking of cancellation?

 

What they mean, Sanjay is that there was plenty of "percuma" being offered to Qantas and even other airlines at the moment because of the A380 delay. Airlines that have ordered the aircraft are being offered compensation in various forms - e.g. lower price on other aircraft if new order placed, monetary compensation, freebies with the aircraft, lots of haggling and deal-making is now going on and Qantas took the situation to it's advantage. With VS announcing their intention to defer delivery 4-5 years from now, there are additional slots available for airlines to jump onto and it would appear that QF has taken all 6 of VS' original order. Furthermore, the A332s have been offered cheap from my understanding to help Qantas fill in the capacity gap as a result of the 380 delay.

 

In other words, what you are seeing is Airbus damage control. They need to save face and put confidence back in the A380 programme. SQ had done so when they ordered an additional 9 at Farnborough, but that deal is up in the air now, so QF jumped on quick and took advantage of Airbus' somewhat weak position to help Airbus restore public and airline confidence in the aircraft.

 

QF has the money to do it.

 

As with Boeing.. well Qantas has ordered 115 787s, and I would imagine that when the B748 Pax version is finalised, we'll start seeing much more orders in that aircraft also, whether or not from Qantas, remains to be seen.

Edited by Sandeep G

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AND Alas! Emirates is upping the ante on what I like to term its "public disapproval campaign" of Airbus by cancelling their orders for 10 A340-600s!!!! AND! To rub salt in Airbus' wounds, Tim Clark and gang have decided to look at the B748 to "complement" the A380 fleet! :rofl:

 

Emirates appears to have confirmed speculation that it will cancel its order for 10 A340-600s plus 10 options. President Tim Clark told reporters at London Heathrow that EK is unhappy with the aircraft and that the order has been taken up by a third party, according to AFP, while AFX News quoted an EK spokesperson as saying the A340-600 "didn't deliver what it set out to deliver in the blueprint. It was far heavier than the original spec had been...That was part of it and other aircraft had come in its place that were far more economic." :o :o

 

 

 

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What they mean, Sanjay is that there was plenty of "percuma" being offered to Qantas and even other airlines at the moment because of the A380 delay. Airlines that have ordered the aircraft are being offered compensation in various forms - e.g. lower price on other aircraft if new order placed, monetary compensation, freebies with the aircraft, lots of haggling and deal-making is now going on and Qantas took the situation to it's advantage. With VS announcing their intention to defer delivery 4-5 years from now, there are additional slots available for airlines to jump onto and it would appear that QF has taken all 6 of VS' original order. Furthermore, the A332s have been offered cheap from my understanding to help Qantas fill in the capacity gap as a result of the 380 delay.

 

In other words, what you are seeing is Airbus damage control. They need to save face and put confidence back in the A380 programme. SQ had done so when they ordered an additional 9 at Farnborough, but that deal is up in the air now, so QF jumped on quick and took advantage of Airbus' somewhat weak position to help Airbus restore public and airline confidence in the aircraft.

 

This is how Reuters put it:

 

October 30, 2006

Australia's Qantas Airways has placed firm orders for eight more Airbus A380s, worth USD$2.4 billion at list prices.

 

The order increases the airline's commitment to the A380 to 20 aircraft, to be delivered between August 2008 and 2015.

 

Qantas said it had negotiated "an attractive package" to firm up the additional eight A380s.

 

Qantas chief executive Geoff Dixon said the A380 was the most suitable aircraft to use on long haul routes from Australia to the United States, Europe and possibly the Middle East.

 

"Our decision to increase our order has been made after an extensive review of the recent problems at Airbus and the delivery schedule delays of the A380", Dixon said.

 

"We are convinced that these problems relate to industrialization issues at Airbus and will be remedied, and in no way relate to the technical capacity of the A380", he said

 

The package also includes an additional four A330-200 aircraft which will ensure Qantas has sufficient capacity with the latest delay in delivery of the airline's initial A380s.

 

The four A330-200s will be delivered between December 2007 and December 2008.

 

Dixon said the terms of the new contract provided, among other things, protection against any further delay in the A380 delivery schedule and slide rights in the event of changed circumstances.

 

 

 

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Emirates appears to have confirmed speculation that it will cancel its order for 10 A340-600s plus 10 options. President Tim Clark told reporters at London Heathrow that EK is unhappy with the aircraft and that the order has been taken up by a third party, according to AFP, while AFX News quoted an EK spokesperson as saying the A340-600 "didn't deliver what it set out to deliver in the blueprint. It was far heavier than the original spec had been...That was part of it and other aircraft had come in its place that were far more economic." :o :o

 

talk about a punch in the gut! well, I guess that puts some rest to the debate between the A346 and the 77W! :pardon:

 

Well, The A340 is by no means as successful as the T7 pogramme. An IIRC, weren't Airbus thinking of closing production of the A340 once all unfilled orders had been fulfilled??? I guess Emirates is giving them a hand in shutting down the line sooner..

 

Pieter, how are the A330s doing in the KL fleet? The A330 is by far a greater success than the A340.

Interestingly, looking at the figures from Airbus and Boeing:

 

Boeing 777: 851 Orders

Airbus A330/340: 956 Orders (excluding the Emirates A346 order)

 

Wonder who will hit 1,000 first?

 

 

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Pieter, how are the A330s doing in the KL fleet?

 

It's the 1st Airbus again in KLM's fleet since the A310, so is a relative 'new' and 'strange' aircraft, when KLM used to be operating an all Boeing fleet (not considering the cityhopper Fokkers); technically, is has above average technical snags, but this could be because of the unfamiliarity of this plane to mechanics and crew :huh:

On the other hand, passengers are quite enthusiastic about the 330 and think it's far superior than the 767 it replaces...

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What are the chances of a KL 787 order would you say then, after all being always (predominately anyway) an all-Boeing customer?

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It's the 1st Airbus again in KLM's fleet since the A310, so is a relative 'new' and 'strange' aircraft, when KLM used to be operating an all Boeing fleet (not considering the cityhopper Fokkers); technically, is has above average technical snags, but this could be because of the unfamiliarity of this plane to mechanics and crew :huh:

On the other hand, passengers are quite enthusiastic about the 330 and think it's far superior than the 767 it replaces...

 

KLM used to operate A310 and 767? :huh:

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KLM used to operate A310 and 767? :huh:

 

This is the KLM-flow: A310-200 --> 767-300 --> A330-200 ;)

 

Meanwhile, Emirates is putting more pressure on Airbus, not just with the A380 project:

 

Emirates President Tim Clark reinforced the push for a major revision of the A350 XWB first revealed by ATWOnline last week, telling media that "Airbus would have to go beyond the current design of the A350 if it wants to win [EK's] order," Reuters reported. Clark was addressing media at the opening of the airline's new A380 gates at London Heathrow and added, "It has to be better than [the current A350 XWB]."

 

 

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This is the KLM-flow: A310-200 --> 767-300 --> A330-200 --> B787-8 :D :rofl: hehehe

 

Tim Clark really is holding his foot down on the throat of Airbus...

 

Whatever it is, I hope that the A350XWB and A380 will enter into service successfully and we won't have an Airbust!

 

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Meanwhile, this just in: Source

 

A380 Begins technical route proving process

 

The Airbus A380 starts its technical route proving exercise on 13th November 2006 to carry out function and reliability tests at key airports around the world. This exercise is the last of the trials required for Type Certification, which is expected in mid December. For the trial, the aircraft has to make over 150 flight hours on a continuous typical airline schedule, performing in its normal operational environment. The aircraft will be operated by Airbus flight crews with the participation of Airworthiness Authority pilots from both EASA and FAA.

 

The aircraft used for the trial is A380 MSN002 and is powered by four Rolls Royce Trent 900 engines. Starting from Toulouse, France, it will be visiting ten different airports in four trips. They include Singapore and Seoul during the first trip (14th and 15th November), then Hong Kong and Narita on 18th and 19th November. The third trip brings the aircraft to Guangzhou (22nd November), and Beijing and Shanghai (23rd November).

 

The fourth and final trip will take the A380 around the globe, via both poles. It will depart Toulouse to reach Johannesburg on 26th November, and then fly over the South Pole en-route to Sydney where it will arrive on 28th November. From Sydney, it will fly across the Pacific to Vancouver (29th November) prior to returning to Toulouse via the North Pole.

 

During this technical route proving exercise, the A380 will have to demonstrate that it can be turned around as per normal airline operations. Tests will cover, amongst other things, checks on standard aircraft maintenance and behaviour, as well as typical airport operations and compatibility. These will include monitoring functions such as bridge docking, cleaning and catering, refuelling and boarding procedures.

 

Five development A380s have now flown. Four aircraft, one of which is powered by the Engine Alliance GP7200 engine, are now actively involved in the intensive flight test programme, which has already reached over 730 flights and 2,300 flight hours. The fifth aircraft is undergoing cabin installation in Hamburg. Firm orders and commitments for the A380 currently stand at 176 aircraft for 16 customers.

 

Unfortunately, no KUL on the A380 radar... :( Lots of China though.. wouldn't have anything to do with the recent trip by Chirac to China and the signing of Airbus' largest ever order and the announcement that the A320 will be assembled in China (Tianjin)?????? Perhaps the A380 is being demonstrated for a few potential chinese buyers?? :D :nea:

Edited by Sandeep G

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Hey guys..check this out!

 

 

 

14 November: Singapore

15 November: Seoul

18 November: Hong Kong

19 November: Narita

22 November: Guangzhou

23 November: Beijing

23 November: Shanghai

26 November: Johannesburg

28 November: Sydney

29 November: Vancouver

 

Guess it wont be calling into KLIA...but maybe some of our SIN based members can check it out! :D Sneeze...make sure you get it too! :yahoo:

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en-route to Sydney where it will arrive on 28th November

 

Woot~!! I can accept a one-day delay on that schedule - cuz I'm leaving on 29 Nov! :nea:

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Woot~!! I can accept a one-day delay on that schedule - cuz I'm leaving on 29 Nov! :nea:

 

you can or you can't? :) hahahah

 

I was supposed to be in Singapore on the 14th evening, but my schedule has been pushed back a few days and as of now I will only be in Singapore for a couple of hours on the 18th evening! argghh!

 

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hmm...somebody is going to SIN to make an apology or keeping SQ happy :) Same deal with QF :)

 

But they won't go to KUL! :(

 

Makes you wonder about what Airbus thinks of MAS....

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you can or you can't? :) hahahah

 

I was supposed to be in Singapore on the 14th evening, but my schedule has been pushed back a few days and as of now I will only be in Singapore for a couple of hours on the 18th evening! argghh!

 

I can still spot from Esky Bar ma.... :rofl: :rofl: Also depends on time due in.

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Makes you wonder about what Airbus thinks of MAS....

"6 purchases....Ah, don't worry la~!!" :rofl:

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"6 purchases....Ah, don't worry la~!!" :rofl:

 

LMAO!

 

 

:)

Edited by Imran K.

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