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MAS likely to cancel A380 orders

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hopefully PMB will change their mind on this...

MAS likely to cancel A380 orders

By Anna Maria Samsudin and Fauziah Ismail

bt@nstp.com.my

 

March 19 2007

 

MALAYSIA Airlines (MAS) is likely to cancel its orders for six A380 jumbo passenger jets from Airbus, despite being offered huge discounts for the new A350. That is because the new delivery dates for the aircraft will no longer fit into the national carrier's fleet plan.

 

Although no specific date was given on the new delivery schedule, it is understood that MAS is expected to get its first A380 by late 2009 based on an earlier understanding that it will get the aircraft a year after Singapore Airlines (SIA). Singapore's flag carrier is scheduled to take delivery of its first unit in October next year.

 

However, recent developments in Airbus, whose European workers went on strike over job cuts last Friday, could push the delivery dates further than scheduled.

 

Sources told Business Times that cancellation of the orders for the aircraft is one of the options. "Everything is fluid at the moment. Until today, Penerbangan Malaysia Bhd (PMB) and MAS are still discussing the issue of compensation for the delays and the new delivery schedules with Airbus," said a source.

 

"These planes are really expensive. So there is no point wasting taxpayers' money if it no longer fits into MAS' overall plans," the source added. PMB, the parent company of MAS, is the buyer of the A380s which it would have leased to MAS. It had ordered six of the planes at a price of RM1.6 billion in 2003. Under the sale and purchase agreement signed between PMB and Airbus, the first three planes were scheduled to be delivered later this year, and the remaining three a year later. MAS had planned to deploy the planes on its long-haul European routes, including London, Paris and Amsterdam. Another source said the discount on the A350, which Airbus is offering to almost all airlines that have ordered the A380, is no big deal as the plane is still in the conceptual stage.

 

 

Singapore-based aviation analyst Shukor Yusof, from Standard & Poor's Equity Research, said cancelling the A380 orders will benefit PMB and MAS more in the long run. "I think MAS' business turnaround plan will stand a better chance without the A380s.

"But if at all MAS decides to cancel the orders, I think they should do it now before Airbus starts producing the planes. If they cancel after production work has commenced, then MAS will have to pay a penalty to Airbus," he said.

 

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This is expected and long overdue. I do believe that MAS don't need A380 at the moment. With A380 cancelled, MAS should be able to focus to make more profits and invest on other important aspects in the company.

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I'm with Idham with this one. Just check my signature, you all know what I'm trying to say.

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if they choose the wrong steps mayb will go bankrup..... if u dun need it dun order it.... :) dun because of "face" problem... scare ppl laugh malaysia canot afford A380 then they go order ... but later 500 + seat aircraft not even half full...

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An hour ago, MAS issued a denial that the A380 order will be cancelled.

 

 

Note however that there is nothing to say that the order will not be cancelled. MAS merely said that "no decision has been made".

 

KC Sim

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Go for A345 or A346 or B773ER.

Well A345 won't see MH livery, I dun think MH want to fly really long haul non-stop flights, SQ and TG negative feedbacks on this plane can put as factor as well ;)

773ER is perfect but A346 won't operate efficient enough for MH =@

 

I believe MH shouldn't even order the A380 in the first place at all, the pride and ego drive them toward it, so much for being the first. A380 require MH to invest a huge amount of money eg. hangar, crew training, gates etc. and I doubt MH see any "light" ahead with A380 flying with them. As I am suggesting that MH do need newer aircrafts in order to pace with competitors but replace the aging 330/734 should've been the number 1 priority. Once when MH near to order 60 737NG, I thought that will be the major turnaround for MH.........well talking thrash has no use, will just see the pain when this beasts fly(or I hope they fly)

Edited by Seth K

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Hi Folks,

Agree with everyone!! MAS should cancel the A380 and get some 773ER and 747-8. I think thats the best option for their turnaround and in the long term, slowly phase out the A330s and operate an all Boeing airliner like some other Asian careers. Not only will they be able to standardise materials, they will be able to reduce cost and improve on trainning. What do you guys think?

 

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747-8? :rolleyes:

 

I agree with Min Chun there, cancel the A380 orders and get the 747-8 :) :pardon:

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Yeah,go for B773er! For me i more prefer to Boeing!

 

I agree with you :pardon: ; think of the slogen: "If it ain't Boeing, it ain't going." :)

 

Cheers!!!! :drinks:

Edited by Andrew Ong

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..... A380 require MH to invest a huge amount of money eg. hangar, crew training, gates etc .....

I believe the gates are almost ready, the hangar is coming up already, anyone can shed light on crew training ?

Fact is, money has already been spent in preparation for the whale. If MH not going to utilize those facilities, it's also a waste of money too isn't it ? EK still planning on sending their 380's over ?

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Yalah, for me A380 not look like a plane

 

Better order 777er or A340

 

But dont forget to fly to Kuching.. :D

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MAS has now denied that it intends to cancel the A380 order:

 

Source: http://www.forbes.com/markets/feeds/afx/20...afx3527576.html

 

Malaysia Airlines denies A380 superjumbo order cancellation

 

 

KUALA LUMPUR (XFN-ASIA) - Malaysia Airlines (MAS) has denied that it is likely cancel an order for six Airbus A380 superjumbos after delays in delivery of the aircraft.

 

'MAS is still in discussions with A380 on the various options available and no decision has been made,' the airline said in a statement.

 

The denial was issued after the New Straits Times, citing unnamed sources, reported that the carrier was mulling cancellation of the order for the A380s over delivery delays.

 

The newspaper said the airline was expected to receive its first A380 by late 2009, a delay leading to exclusion from it's fleet plan.

 

'These planes are really expensive so there is no point in wasting taxpayers' money if it no longer fits into MAS' overall plans,' a source was quoted as saying.

 

Airbus said in November that Malaysia Airlines had not cancelled its order despite the company failing to meet delivery deadlines for 10 months.

 

Deliveries of the A380, the world's largest commercial airliner and the cornerstone in Airbus' efforts to catch up with Boeing (nyse: BA - news - people ), are now two years behind schedule because of production problems.

 

The struggling aircraft manufacturer on Friday saw strikes of thousands of Airbus workers across Europe after announcing 10,000 job cuts in a bid to solve a crisis caused mainly by problems with its A380 superjumbo jet.

Edited by Keith T

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Omg, always happen this way...............someone say they going to cancel, then they deny............wonder when this will happen again ;) Happened few times before...

 

The media lied anout MAS thinking of cancelling the A380 orders? :huh: :help:

I dun think lie is the correct term to put, u mean speculate?

 

KUALA LUMPUR (XFN-ASIA) - Malaysia Airlines (MAS) has denied that it is likely cancel an order for six Airbus A380 superjumbos after delays in delivery of the aircraft.

 

'MAS is still in discussions with A380 on the various options available and no decision has been made,' the airline said in a statement.

That's like saying, we want it but we dun want it =@

Edited by Seth K

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773ER the best choice yea Azuddin? :D

Agree with you :D

747-8? :rolleyes:

 

747-8 promise a well performance, I would also choose it. For now, 747-8 not yet flown. So i choose 773ER if order has to be placed in nearby time, since we all know the performance already.

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News release from Bernama:

 

MAS Says No Decision Yet On Airbus A380

 

KUALA LUMPUR, March 19 (Bernama) -- Malaysia Airlines (MAS) has yet to make any decision on the six Airbus A380s that it ordered in 2003, the delivery of which has been delayed.

 

"MAS is still in discussions with A380 on the various options available and no decision has been made," the airline said in a statement.

 

It said this when asked to comment on a news report today that the national carrier might cancel the A380 order after several delays in the delivery.

 

Based on the original schedule, MAS should have received its second A380 by now, MAS' manager director and chief executive officer, Idris Jala was quoted as saying last month when the company announced its 2006 financial results.

 

However, under a new delivery schedule it is understood that MAS would probably get its first A380 only in late 2009.

 

Penerbangan Malaysia Bhd (PMB), the parent company of MAS, is the buyer of the A380s which it would have leased to MAS.

 

The total cost of the six Airbus, valued as at 2003, is RM1.6 billion.

 

-- BERNAMA

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I dun think lie is the correct term to put, u mean speculate?

 

That's the word I was looking for :) :pardon:

 

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could be a ploy to get Airbus' attention to the negotiating table because it would seem that Airbus has "sidelined" MAS when it comes to renegotiation of contracts. Remember what TGs order cancellation threat did for them? There was an A380 as quick as a flash in BKK for a "tour".

 

MAS should cancel and buy a new narrow-body fleet which is it's bread and butter!! Also, the airline should really go one way - 777 or A330. Lower them operating costs! The decision is nowadays more like 777 vs 787 vs A350 vs A330. I say go for the 787s now and order some 748s!

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MAS should cancel and buy a new narrow-body fleet which is it's bread and butter!! Also, the airline should really go one way - 777 or A330. Lower them operating costs! The decision is nowadays more like 777 vs 787 vs A350 vs A330. I say go for the 787s now and order some 748s!

Thous I find that politics will drive them toward both manufacturers, maintaining diplomatic relationships with France and USA is sumthing for Malaysia. Well both leaders might send letters to convince Malaysia's PM to buy their product. I once read that France leader push India toward Airbus or consequence iirc...Just look how Malaysia bought the military product from Italy can secure MAS landing right at FCO.

Edited by Seth K

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