Airbus A380 Development

[Mohd Idham 0]

SQ has asked for compensation...

[Bing Chu 0]

Imran,

You left out (7) the briyani

[Tony 1]

wow... all delayed... and for sure MAS's first A380 also delayed, until our turnaround plan is completed?

 

a really bad news for Airbus, but a good news to SQ that they will be operating A380 without competitors for some time... rite?

As far as I can remember, MH's BTP will be "ongoing" for the next 5-7 years. There're short, medium, and long-term plans in the BTP.

 

But on the other hand, wouldn't SQ be affected as well (the delay)?

[Seth K 3]

Why is is everyone going to Dubai? hint hint Imran

Even my dad going to Dubai, not for biz, holiday etc. but connection flights

[Imran K. 0]

Imran,

You left out (7) the briyani

 

Ahhh..my bad..

 

But for some MW members...the briyani goes straight to their doors in Malaysia! (car doors..that is..)

[KC Sim 2]

SQ has asked for compensation...

 

This is funny . . . the one thing that I most remembered from my trip to Dubai was indeed the Bryani. It was truly most satisfying. Frankly, all that modern development and artificial islands in fancy shapes and motifs don't quite capture my imagination as a tourist or business visitor.

 

What I also find fascinating is talking to taxi drivers while commuting . . . most of them seem to be from India and most of these are from Kerala. Each has a fascinating story and most ended with "I will save enough money to start a business in India and will return home to be with my family."

 

The delayed delivery schedule may just work out perfectly for MAS and hopefully MAS could also wrangle a princely sum as compensation.

 

SIA is still expecting her first A380 before the end of 2006 but with one aircraft, it will not be able to launch daily SIN-SYD-SIN services. This leaves the option of operating the A380 on shorter routes for the time being or operating about 3 or 4 weekly services to SYD till a second aircraft is delivered.

 

In contrast to the 20-25 A380s that Airbus had expected to deliver in 2007, only 9 will now be delivered (barring further problems at Airbus). For sure, other airlines that will be affected are Lufthansa and Air France along with SIA, Qantas, Emirates, MAS etc.

 

A delay is certainly not unthinkable for a project this size (to be fair to Airbus) but airlines are perhaps most annoyed by Airbus lack of communication with the airlines on the true state of the production lines. It seems most airlines are surprised by both the first and the latest delay announcements. Although Airbus President Gustav Humbert indicated that he made personal calls to the CEOs of 10 airlines, this probably took place very shortly before the announcement went out. Surely indications of such a lengthy second delay did not surface that late.

 

How Airbus manages the A380 project is perhaps a text-book case study for all marketers and public relations practioners.

 

KC Sim

[Tony 1]

Perhaps airlines weren't contacted until Airbus could no longer hide the fact (and loses hope) of delay? As in, clinching till the last moment believing things will still be alright.

[Imran K. 0]

I cant even begin to fathom the degree of anger possessed by the affected airlines if that were true (not saying it isnt...).

 

If you pay 300 million USD for a revolutionary piece of machinery, you would expect to be kept VERY well informed about the progress of the aircraft quite regularly....be it any problems it may face, delays, improvements..etc..etc...

 

I dono la...Airbus seems to be having a hard time keeping to its proposed timeline. We cant really blame the aircraft and its production line all that much..it could also be an internal management problem.

[Tony 1]

I recall someone who has negotiated and dealt with both Airbus and Boeing before when he was with QF about 10 years ago. This summarises it:

 

BOEING: I'll have your airplanes delivered on 4th June, but please bear with us if we're a day or two late - we'll keep you posted.

Outcome: Might arrive on 1st June.

 

AIRBUS: No problem, it'll be at your office by 4th June.

Outcome: Arrives a week later with late apologies.

 

Just as examples.

[Tamizi Hj Tamby 1]

I recall someone who has negotiated and dealt with both Airbus and Boeing before when he was with QF about 10 years ago. This summarises it:

 

BOEING: I'll have your airplanes delivered on 4th June, but please bear with us if we're a day or two late - we'll keep you posted.

Outcome: Might arrive on 1st June.

 

AIRBUS: No problem, it'll be at your office by 4th June.

Outcome: Arrives a week later with late apologies.

 

Just as examples.

 

Good example shown above,Tony.If Airbus doing like that,sure it can overcome Boeing.

[Kevin Teh 0]

AIRBUS: No problem, it'll be at your office by 4th June.

Outcome: Arrives a week later with late apologies.

 

hopefully no further delays will be annouced for the superjumbo, else that will be a great reason for Boeing to win in the market...

 

 

[Tamizi Hj Tamby 1]

Frankly,what really make the Superjumbo delivery was delayed? i still don't understand it

 

If the delivery was delayed again....Wonder what's the reaction of the A380 buyer.But who knows?

 

 

Edited June 15, 2006 by Tamizi Hj Tamby

[Gavin Andrew David 6]

I'd say that for Airbus to pull off such a big delay , they must be having tonnes of problems , and mind you I have not heard anything about their aircraft using those new engines from ' Engine Alliance ' or something like that .

 

So looks like they're in big trouble ..

 

I heard on the news this morning that SQ and EK are seeking compensation for this delay which is the SECOND delay .....

 

So whats going to happen to Airbus ?

 

Will Boeing be coming up with something interesting to take advantage of this disappointments to the other airlines ... We'll just have to wait and see ..

 

[Tamizi Hj Tamby 1]

With this problem,looks like SQ and EK had lost their faith on Airbus.

[Walter Sim 1]

I heard that Airbus has some weight issues that will hinder it from its promised performance. True?

[Tony 1]

Weight is no stranger when it comes to producing new airliners. The last figure I've seen was that the A380 is overweight by 15 tonnes than initially designed.

 

First delay, IIRC, was due to undercarriage problems. They had to redesign the main landing gear to cope with tight turns on taxiways.

 

As for the Engine Alliance engine, that's EK's option and they'll need to be tested out on the actual A380 before certified for entry into service.

 

To us, it may appear that SQ and EK are losing faith on Airbus, but it's actually a good opportunity to ask for hefty compensation and also as a "catch" for future negotiations.

[Pieter C. 5]

Think some 'heads' will roll soon at Airbus; see this:

 

June 15, 2006

Airbus parent EADS has launched an inquiry into the sudden disclosure of A380 delivery delays which hit its stock price and pushed the planemaker into a "major crisis," its co-chairman was quoted on Thursday as saying.

 

Frenchman Arnaud Lagardere said he would not look for any quick scapegoats, but fired a warning shot over the futures of Airbus chief Gustav Humbert and the co-CEO of EADS, Noel Forgeard, who has apologized to investors over the affair.

 

"I don't want to over-react and force heads to roll just to please the markets," Lagardere told Le Monde in an interview published a day after EADS stock fell by 26 percent.

 

"The question I am asking is whether the head of Airbus knew about the internal situation," Lagardere told the newspaper.

 

"Before punishing anyone, we are going to carry out a deep dive into the group to find out where the production problems are. We have already found some. There is no question of making someone at the bottom of the company pay the price."

 

The disclosure of further six month delays due to wiring problems identical to ones identified last year shocked the industry after Airbus and EADS insisted the program was on track in recent weeks. Airlines are seeking compensation.

 

"We are facing a major crisis and I put myself in the position of shareholders and analysts who do not understand this new delay," Lagardere, whose family media group owns 7.5 percent of EADS, told Le Monde.

 

Recriminations at senior level began even before EADS's "Black Wednesday" on the stock market was over, with Forgeard telling analysts Airbus would have to look at changes in its methods or else face stricter central controls.

 

Analysts say Forgeard is under just as much pressure over the EUR2 billion (USD$2.53 billion) delays because of his close links with the A380 program which he launched while running Airbus. EADS also faces headaches over the mid-sized A350 plane he launched.

 

Asked in Le Monde whether Forgeard retained his confidence, Lagardere gave a guarded response. "I am not in the habit of not showing solidarity with my teams, and this is a discussion that I will have with (German co-chairman) Manfred Bischoff."

 

Forgeard's critics have always suspected him of wanting to run Airbus after leaving the EADS unit last year, so the claims that he knew nothing of the delays have raised some eyebrows.

 

Forgeard was propelled to the top of EADS, which owns 80 percent of Airbus, following a power struggle last year.

 

Lagardere backed him over a French protege late in the day, reportedly under pressure from Forgeard's mentor, French President Jacques Chirac whom he once served as an adviser.

 

In comments leaving no doubts about Lagardere's fury at the timing of the news -- weeks after his media company and Germany's DaimlerChrysler reduced stakes in EADS -- Lagardere accepted that EADS had lost sight of what is happening in its plants.

 

Lagardere said he had had no idea about the looming delays in Airbus before agreeing with the German car firm to sell a total of EUR4.2 billion (USD$5.3 billion) of stock in April when EADS shares were above 34 euros, compared with barely 20 euros now.

 

"If we had been dishonest, we wouldn't have sold 7.5 percent of EADS but all of our (15 percent) stake. I have a choice between appearing dishonest or incompetent because I don't know what is happening in the factories. I chose the latter."

 

Lagardere declined to comment on decisions by some EADS executives including Forgeard to exercise stock options in March, saying it was a matter for them.

 

EADS shares recovered 7.3 percent on Thursday with at least one broker suggesting they had been oversold in Wednesday's rout. In late trading the shares stood at 20.09 euros.

 

(Reuters)

 

[Edwin P K 0]

I don't care, I wanna be on one A380 end of this YEAR!

 

 

[Seth K 3]

Singapore Airlines ordered Boeing aircraft worth $4.52 billion but said the move was unrelated to its disappointment over the latest delay in the A380 superjumbo

 

Singapore Airlines (SIA) is in compensation talks with Airbus after the European aircraft maker announced a further delay in delivery of its A380 super jumbo jet

 

Dubai's flagship airline Emirates said that a further delay in the delivery of the A380 super jumbo announced a day earlier will hurt expansion plans and future revenue

 

Aerospace component maker Goodrich Corp. said on Tuesday it sees a slight dip in sales over the next two years due to Airbus' decision to delay delivery of its super-jumbo A380 jetliner, but said it would have a negligible impact on per share earnings for this year and next

 

Qantas Airways, the Australian flagship carrier, has begun an internal review of the implications of a seven-month delay in the delivery of the new Airbus A380 super jumbo and is likely to ask for compensation from the European aircraft maker.

 

Airbus yesterday confirmed a further delay of up to seven months in the deliveries of its A380 Superjumbo, which is likely to affect the growth of Emirates, Etihad and Qatar Airways the Middle East's fastest growing airlines.

 

Indian budget airline Kingfisher said production delays on the Airbus A380 super jumbo will not affect its future business.

 

The delay in delivery of the A380 has raised doubts within Malaysia Airlines (MAS) on whether the national carrier should add the super jumbo to its future fleet.

 

Whose our finger should point to?If this keep continue on to happen, A380 will not be a success program. Afterall, they don't reach what they want with A380, the world can judge thru

[Seth K 3]

Anyone here planning to fly the 380?

As for me, SIN-LHR mid 2007 We can meet up in flight with all MW Silly idea of mine

[Imran K. 0]

I am...every year post 2008 if Uncle Ahmed continues with the fringe benefits...

[Tony 1]

SYD-SIN for me given there was no delay and SQ gets the A380 by end of this year for intro into service. Unlikely now, perhaps?

[Pieter C. 5]

Think some 'heads' will roll soon at Airbus; see this:

 

Didn't I say so previously ?

 

June 20, 2006

European aerospace firm EADS denied the German side of the Franco-German company had called for French co-Chief Executive Noel Forgeard to step down after Airbus announced further delays in A380 deliveries.

 

"I can clearly deny that," EADS spokesman Michael Hauger said on Tuesday.

 

EADS is 33 percent owned by German carmaker DaimlerChrysler, represented by EADS co-Chairman Manfred Bischoff. France's Lagardere, represented by EADS co-Chairman Arnaud Lagardere, and the French government each own 15 percent.

 

German newspaper Handelsblatt said on Tuesday that "the German side" at a crisis meeting of Bischoff, Lagardere, Forgeard and German EADS co-CEO Thomas Enders on Monday urged Forgeard to quit.

 

Airbus, 80 percent owned by EADS, announced further delays in deliveries of the A380 superjumbo last week, forcing EADS to warn of a EUR2 billion (USD$2.5 billion) cut in operating profit between 2007 and 2010.

 

EADS shares lost a quarter of their value.

 

Forgeard, under whose leadership at Airbus the A380 was born, came under additional fire last week over his decision to sell some of his own shares in EADS in March. He denied having any privileged information at the time of the sale.

 

(Reuters)

[Edwin P K 0]

Report: Airbus to announce new six-month A380 delay

The Associated Press

 

 

Published: September 20, 2006

PARIS Airbus is set to announce a further six-month delay to its 555-seater A380 jet, French financial daily Les Echos reported Wednesday.

 

The newspaper, which did not cite sources, said the new production hitch was caused by problems at the A380 assembly plant at Airbus headquarters in Toulouse, southern France.

 

The flagship superjumbo program has already slipped by about 12 months, after Airbus announced a first six-month delay early in 2005, followed by a second in June this year.

 

The latest hitches mean Airbus will be unable to meet its reduced target of nine deliveries in 2007, the newspaper said, and Australia's Qantas Airways Ltd. will have to wait until early 2008 for its first A380 — two years longer than originally planned.

 

A Qantas spokesman said the airline had no immediate comment on the report.

 

Airbus also declined to comment on its delivery schedule pending the results of an ongoing internal audit ordered by new Chief Executive Christian Streiff. Spokesman Justin Dubon said Airbus plans to publish the findings at the end of September, as previously announced.

 

Air France-KLM said earlier Wednesday it had received a revised A380 delivery schedule from Airbus, but a spokeswoman later clarified that no new information had been received since June, when Airbus announced the second production delay. Virgin Atlantic Airways Ltd., Lufthansa AG and Dubai-based Emirates also said they had not received any new schedule.

 

Airbus insisted in June it was still on track to deliver the first A380 to launch customer Singapore Airlines Ltd. by the end of the year. But the carrier suggested Wednesday that the timetable could still slip.

 

"Singapore Airlines is working with Airbus towards delivery of the first A380 in December, but Airbus can only confirm the date after they have completed their technical review at the end of September," said airline spokesman Stephen Forshaw.

 

The June delay announcement hit shares in European Aeronautic Defence and Space Co., which owns 80 percent of Airbus, and triggered a management crisis that led to the ouster of top executives from both companies.

 

EADS shares were down 0.4 percent at €22.63 (US$28.64) in Paris on Wednesday.

 

 

.

Edited September 20, 2006 by Pieter C.

[Pieter C. 5]

This is what Reuters has to say about it:

 

September 20, 2006

European aircraft maker Airbus is expected to announce further delays in the deliveries of its A380 superjumbo plane in the next few days, French newspaper Les Echos reported on Wednesday without citing sources.

 

Airbus had already announced delays in June, prompting the ousting of Airbus's chief executive and of Noel Forgeard, co-chief executive of the company's parent EADS.

 

An Airbus spokeswoman said the Les Echos report was based on speculation which she could "neither confirm nor deny."

"We have been undertaking a full review of the A380 program since the summer. It is not finished yet. We will communicate after the EADS board meeting on September 29," she said.

 

Les Echos said Airbus could announce a delay of at least six months for its first deliveries to clients, such as Air France, and only four deliveries next year to Singapore Airlines and Emirates.

 

"According to our information, the assembly problems at the Toulouse-Blagnac plant would not allow it (Airbus) to hold to its last pledge of delivering at least nine aircraft in 2007 (against 25 initially planned)," the paper said.

 

It added that the new schedule could be revealed before the next board meeting of EADS on September 29.

 

(Reuters)