Airbus announced further A380 Delays

GE90 · Post by **GE90** » 14 Jun 2006, 03:04

Well I for one would like to thank Bits for putting up links to interesting stories. Nearly all of the time they are on the mark for what I am looking for, and he knows enough about the business to comment intelligently. So thanks Bits.

achace · Post by **achace** » 14 Jun 2006, 06:52

This delay is a great shame to all lovers of aircraft, Boeing or Airbus. Lets hope they dont lose too many orders.

The biggest impact may actually be on the A350/370.

With cashflow being seriously compromised, I suspect the A350 will now only be a slightly warmed over version of what they have now, so that they can preserve existing orders and preserve budgeted income. Even EADS has to be dismayed at the delays in getting the A380's out of the door and its bottom line impact.

At last count, 19 were structurally complete or close to that, and they are talking of only delivering 10 aircraft between the first SIA in November/December of this year and the end of 2007. There will be some extended warranties required

smacDC-10 · Post by **smacDC-10** » 14 Jun 2006, 06:53

Hi everybody, this is my first post. Anyway, the A380 will survive these setbacks unless more problems arise.

teddybAIR · Post by **teddybAIR** » 14 Jun 2006, 09:18

Due to restricted capacity in "wiring harnesses" (does anybody know what this is?) Airbus states that it will further delay it's A380 program by only producing 9 A380's next year instead if the 25 it planned initially.

Another challange to be faced by the A380 is that the Civil Aviation Authority issued an interim rule that trailing airplanes have to stay twice as far behind an A380, meaning that an A380 would take up two slots, reducing it's ability to reduce traffic congestion in bussy airports.

Article can be found on the following link: http://seattlepi.nwsource.com/business/ ... bus17.html

Turbulent times for airbus! Let's hope they can fly out of the thunderstorm into clearer skies in the near future!

regards,
Tom

teddybAIR · Post by **teddybAIR** » 14 Jun 2006, 09:21

Found an article confirming the previous one on USAToday.com

http://www.usatoday.com/money/biztravel ... usat_x.htm

Vinnie-Winnie · Post by **Vinnie-Winnie** » 14 Jun 2006, 09:37

http://www.bloomberg.com/apps/news?pid= ... fer=europe

"June 13 (Bloomberg) -- The parent company of Airbus SAS said delays in delivering the A380 superjumbo jet, the world's biggest passenger plane, will reduce operating profit by a combined 2 billion euros ($2.5 billion) from 2007 to 2010."

And now a profit warning...

Things look bad indeed!

teddybAIR · Post by **teddybAIR** » 14 Jun 2006, 09:44

Appart from the financials, my biggest concern is the amount of management time and engineering time that is going to the A380 project while Airbus still has to attend to several strategically important projects such as the successor for the 350 and the upgrading of the 320-family. Currently I have the impression that the problems do not concern individual products, but their total product-line and strategy.

CX · Post by CX » 14 Jun 2006, 09:48

Yes, i mean airlines who were launch customers of the A380, must have expected some delay... i mean you took the gamble to be among the firsts to operate such a brand new aircraft, a size that was never similar.. However i must say that if they delay it further and further and further then it will start to piss some off... but delaying the plane for a year is probably expected by A380 launch airlines although they will say they are very pissed anyway..

But yes, i do hope that the A380 won't drag down the new widebody and the A320 successor!

airazurxtror · Post by **airazurxtror** » 14 Jun 2006, 13:51

Some aircraft with big problems during the development phase became great successes ( example : the 747); on the other hand, some never recovered from it : Comet, Britannia, and even the 10-11...
We will see what happens with the A380.
(I have just heard on TF1 that the EADS share has suffered a 30 % fall at the Paris stock exchange this morning.)

David747 · Post by **David747** » 14 Jun 2006, 20:06

Airbus will recover from these setbacks, like CX posted, further delays will no doubt get people angry, but in the end they have to realize that they took a gamble on airliner that before it took its first flight was nothing more than a paper dream. I think people should be patient with this plane. Frankly all the negativism surround the A380 really really getting old. And its beginning to ..............well figure it out.

bits44 · Post by **bits44** » 14 Jun 2006, 22:20

GE90 wrote:Well I for one would like to thank Bits for putting up links to interesting stories. Nearly all of the time they are on the mark for what I am looking for, and he knows enough about the business to comment intelligently. So thanks Bits.

You are more than welcome, and hopefully Airbus and their senior management can work together to resolve the difficulties they have encountered. I feel very strongly that the engineers and assembly workers are the ones who are being hurt by all this gloom and doom.

They certainly deserve better!

KT

JoeCanuck · Post by **JoeCanuck** » 14 Jun 2006, 22:27

Airbus isn't going anywhere. It wasn't very long ago that the same pundits who are writing obituaries for Airbus, were pounding nails in the coffin of Boeing.

keen_watcher · Post by **keen_watcher** » 16 Jun 2006, 14:51

The story below is quoted from Malaysian National New Agency today, iit seems not only management of A380 customer airlines are unhappy with the delay, the sentiment spreading to working level is of no good sign for Airbus, overall speaking.

However, this posting might anger quite a few readers of this forum...

June 16, 2006 17:51 PM

MAS Staff Union Urges PMB To Cancel Purchase Of A380

KUALA LUMPUR, June 16 (Bernama) -- The Malaysia Airline System
Employees Union (MASEU) has called on Penerbangan Malaysia Bhd (PMB) to
cancel its plans to buy the Airbus 380. The order for the aeroplane was made
several years ago.

The call came following the latest development where Airbus Industries
has announced, for the second time, a delay in the delivery of the A380 to
several airlines in the region including the Singapore Airlines and
Australia's Qantas Airways.

In a statement today, MASEU said that although under the sale and
purchase agreement Airbus will pay compensation for the late delivery, the
matter has to be looked at from a wider perspective.

It said PMB would only be buying the aircraft and leasing it to MAS.

MAS meanwhile would have to bear the cost of maintaining the aircraft,
the storage of the spare parts and support the sending of mechanics,
engineers and pilots to Tolouse, France for the specialisation training.

The airline would also have to pay different rates of allowances to
the mechanics, engineers and pilots of the A380, it said.

Such costs will be considered a one-off expenditure and entered into
the management cost.

If this can be avoided, the cost of management can be brought down and
hence the deficit of MAS as well.

MASEU said the money saved from foregoing the plan could be used to
raise the level of MAS cashflow and be spent on the maintenance of its
existing aircraft.

The existing aeroplanes could also be upgraded along the set
modification standards.

-- BERNAMA

bits44 · Post by **bits44** » 19 Jun 2006, 22:13

The most recent productions dates announced for the A380.

Read this article

DFW · Post by **DFW** » 20 Jun 2006, 23:32

The bigger story is not the 7 month delay in first delivery of the A380 but the decline in production volume from 20-25 planes per year to half that number. Airlines may not get their full order for years, not just 7 months late.

Of course, Boeing did something worse a few years ago. They had to shut down their 737 production line for a month due to supply chain issues. It's one thing to have delays starting up your production line. It's another to shut it down after having it running for decades!

So Boeing learned from their experience. Let's hope Airbus does the same.

Stepha380 · Post by **Stepha380** » 21 Jun 2006, 00:00

It seems not only management of A380 customer airlines are unhappy with the delay, the sentiment spreading to working level is of no good sign for Airbus

MAS fired 5000 people in the last months, I think it is a good move to cancel the order in order to have an better financial situation.

I think people should be patient with this plane

A delay in production is cheaper than retrofit once in service.

airlines who were launch customers of the A380, must have expected some delay

Maybe some companies have forgotten the meaning of being a launch customer, because the stakeholders have entered the era of the "instant profit".

will reduce operating profit by a combined 2 billion euros ($2.5 billion) from 2007 to 2010

If you delay the deliveries, you delay the incomes (minus the compensation), it won't change anything on the long-term.

wiring harnesses= thousands of wires for aircraft systems like IFE, Air conditionning...

I can't wait to see the A380 in America

I would like to land in LAX on an AF 380.

Shareholders would rather sell all the assets if they could make lots of profits. The Howard Hughes's spirit has forever disappeared.[/quote]

cageyjames · Post by **cageyjames** » 21 Jun 2006, 00:55

Boy the pressure is on I guess. It isn't easy being the French PM I guess...

French Prime Minister Erupts in Rage Over Airbus Accusation

When François Hollande, the Socialist Party leader, berated the French government for its handling of the crisis at Europe's leading aerospace company, Airbus, Prime Minister Dominique de Villepin lost control.

In an outburst that was both highly personal and filled with rage, Mr. de Villepin accused Mr. Hollande of cowardice.

Stepha380 · Post by **Stepha380** » 21 Jun 2006, 03:08

Prime Minister Dominique de Villepin

He has never been elected by people, and is disliked by the majority of people under 30. His popularity is the lowest for a PM since the end of WWII. One of the french politicains comment on the PM popularity "If he goes on like this on polls, he will actually find petrol".

He should have resigned six months ago, but it is a unfair speech for socialists to accuse the PM of misconduct in the EADS case. The socialists had the power to redesign the wiring harnesses until their defeat in 2002 and didn't do much IIRC. LOL

CXRules · Post by **CXRules** » 21 Jun 2006, 03:34

with the MAS financial situation, it's wise to cancel the order.

http://www.atwonline.com/news/story.html?storyID=5445

Aviation24.be

Airbus announced further A380 Delays

Thanks Bits

Re: Thanks Bits