Airbus announces new A380 delivery delays; EIS put off until 2007
Wednesday June 14, 2006
Airbus yesterday revealed that A380 launch customer Singapore Airlines will receive its first aircraft too late in the year to place it into service in 2006, as SIA had hoped.
The airframer also said that the A380 delivery schedule will undergo a shift of "six to seven months" and that "production ramp-up issues" likely will limit 2007 deliveries to just nine aircraft rather than around 20 as previously planned. A further shortfall in deliveries of 5-9 aircraft is expected in 2008 and approximately five in 2009.
Speaking to reporters in Toulouse at the company's annual technical press briefing, President and CEO Gustav Humbert said he had spoken personally with 10 CEOs whose airlines are affected by the delays. "They were not happy with Airbus, but they appreciate our approach," he said, adding that "Airbus takes full responsibility" for the situation.
According to a company statement, the delays are owing to "industrial issues only...mainly traceable to bottlenecks formed in the definition, manufacturing and installation of electrical systems and resulting harnesses." A total of 15 aircraft have been assembled including the static and fatigue test airframes, but many are awaiting wiring. Customers for the A380-800F will not be affected by the delays. The manufacturer also said a review has indicated that "further actions are required to secure a ramp-up recovery" in 2008-09.
Under the original program schedule, SIA expected to take its first A380 last month. In May 2005, however, Airbus said the program would slip several months (ATWOnline, May 5, 2005). Tuesday's announcement is the first time it formally confirmed that SIA will not be able to place the A380 into service in 2006. The carrier is believed to be taking the first five, followed by four to Emirates and two to Qantas.
Yesterday an Emirates spokesperson told Reuters that the airline now expects its first A380 in September 2007 with EIS in January 2008. When the original delivery delays were announced a year ago, Qantas was told to expect its first aircraft in May 2007, a date that apparently has slipped to the end of the fourth quarter or early 2008.
Separately, Airbus parent EADS said it anticipates average annual EBIT shortfalls of €500 million ($630 million) in 2007-10 owing to the delays. "We have a serious issue with the industrial ramp-up of the A380. We expect Airbus management to fully deliver according to the revised schedule and, if possible, even to improve," EADS Co-CEOs Tom Enders and Noel Forgeard said in a statement.
by Perry Flint and Aaron Karp
http://www.atwonline.com/news/story.html?storyID=5382
Wednesday June 14, 2006
Airbus yesterday revealed that A380 launch customer Singapore Airlines will receive its first aircraft too late in the year to place it into service in 2006, as SIA had hoped.
The airframer also said that the A380 delivery schedule will undergo a shift of "six to seven months" and that "production ramp-up issues" likely will limit 2007 deliveries to just nine aircraft rather than around 20 as previously planned. A further shortfall in deliveries of 5-9 aircraft is expected in 2008 and approximately five in 2009.
Speaking to reporters in Toulouse at the company's annual technical press briefing, President and CEO Gustav Humbert said he had spoken personally with 10 CEOs whose airlines are affected by the delays. "They were not happy with Airbus, but they appreciate our approach," he said, adding that "Airbus takes full responsibility" for the situation.
According to a company statement, the delays are owing to "industrial issues only...mainly traceable to bottlenecks formed in the definition, manufacturing and installation of electrical systems and resulting harnesses." A total of 15 aircraft have been assembled including the static and fatigue test airframes, but many are awaiting wiring. Customers for the A380-800F will not be affected by the delays. The manufacturer also said a review has indicated that "further actions are required to secure a ramp-up recovery" in 2008-09.
Under the original program schedule, SIA expected to take its first A380 last month. In May 2005, however, Airbus said the program would slip several months (ATWOnline, May 5, 2005). Tuesday's announcement is the first time it formally confirmed that SIA will not be able to place the A380 into service in 2006. The carrier is believed to be taking the first five, followed by four to Emirates and two to Qantas.
Yesterday an Emirates spokesperson told Reuters that the airline now expects its first A380 in September 2007 with EIS in January 2008. When the original delivery delays were announced a year ago, Qantas was told to expect its first aircraft in May 2007, a date that apparently has slipped to the end of the fourth quarter or early 2008.
Separately, Airbus parent EADS said it anticipates average annual EBIT shortfalls of €500 million ($630 million) in 2007-10 owing to the delays. "We have a serious issue with the industrial ramp-up of the A380. We expect Airbus management to fully deliver according to the revised schedule and, if possible, even to improve," EADS Co-CEOs Tom Enders and Noel Forgeard said in a statement.
by Perry Flint and Aaron Karp
http://www.atwonline.com/news/story.html?storyID=5382