A380 - Airline Compensation

smokejumper · Post by **smokejumper** » 09 Oct 2006, 14:22

Article on Airbus compensation set-aside:

http://www.lse.co.uk/FinanceNews.asp?sh ... ts__report

CX · Post by CX » 09 Oct 2006, 14:58

Well what can you say...
I wonder whether the compensation, such as Emirates one, can be turned into leasing of aircrafts to actually compensate for the delay, rather than paying them the full amount in cash.

Doesn't look like there will be cancellations, you probably have to pay Airbus back to cancel an order whereas you are receiving benefits for doing nothing.

cageyjames · Post by **cageyjames** » 09 Oct 2006, 15:30

No one will cancel at this point (well at least cancel all their orders). If you need 747/A380 size aircraft, you'll still get the aircraft sooner from Airbus than Boeing will get your 748 in service.

As for leasing, maybe Airbus can lease you an older 747.

TexasGuy · Post by **TexasGuy** » 09 Oct 2006, 18:06

Virgin speaks up with a monetary amount.

Virgin To Seek A380 Compensation
October 9, 2006
Virgin Atlantic will seek more than more than GBP20 million (USD$37.4 million) in compensation from Airbus for delays in deliveries of the A380 superjumbo, a source familiar with the situation said on Monday...........

http://news.airwise.com/story/view/1160386111.html

TexasGuy · Post by **TexasGuy** » 09 Oct 2006, 18:14

Singapore doesnt list amount, but confirms there will be compensation.

Singapore Airlines said on Wednesday it would receive compensation from Airbus for the delay in the delivery of its superjumbo A380 aircraft and the first plane would be delivered in the fourth quarter of 2007.

"The delays are disappointing; all the more so because the flight test and certification program is proceeding well, and the delays are down to production issues," a Singapore Airlines statement said.

It added the compensation sum was confidential..........

http://news.airwise.com/story/view/1160005851.html

smokejumper · Post by **smokejumper** » 10 Oct 2006, 02:46

Several news sources report that Airbus has set aisde 1 billion Euros (US$1,258,700,000) for compensation to airlines fo rthe delay(s)! This will certainly add to the financial issues in starting the A350XWB project.

http://www.lse.co.uk/FinanceNews.asp?sh ... ts__report

CX · Post by CX » 10 Oct 2006, 08:24

smokejumper wrote:Several news sources report that Airbus has set aisde 1 billion Euros (US$1,258,700,000) for compensation to airlines fo rthe delay(s)! This will certainly add to the financial issues in starting the A350XWB project.

http://www.lse.co.uk/FinanceNews.asp?sh ... ts__report

It's a bit repetitive, but imo, Airbus must go ahead with the XWB. Whether that is a plane that will be available in 2012, or a lighter composite plane that will be delayed another 2 years, they got to launch the programme very soon. Just consider how many airlines are wanting to replace their long haul mid sized fleets, let alone the ones that are expanding, if Airbus suddenly says no XWB, every single one of them will turn to Boeing.

CX · Post by CX » 10 Oct 2006, 08:44

Numerous new articles on flightglobal...

Emirates said they were considering the 748I well before the A380 problems, so i guess even if they order 748Is it does not mean they will cancel A380s.

On the other hand Airbus admitted A350 and A400M programmes may be affected if they want to reach their profitability target... but come on, in these times, it is better off to make a short term loss than suffer a long term low profitability.

RC20 · Post by **RC20** » 14 Oct 2006, 06:06

What I have been pondering is the disconnect between all those airlines trying to keep Airbus afloat so they can keep aircraft prices down, and the seeking of compensation.

The more money they suck out of Airbus, the less likely Airbus can launch the A350 (and other technology and project to compete)

Seems like a case of wanting their cake and eating it to. A hand up doesn’t help if you are kneecapping them at the same time.

keen_watcher · Post by **keen_watcher** » 14 Oct 2006, 06:27

Unfortunately, in our not-too-perfect world, airlines (and their mangers) are short-sighted, cash-hungry, commercial and not-too-charitable organizations... downturn and/or difficulities of Airbus is NOT of their grave concern!!!

CX · Post by CX » 14 Oct 2006, 15:37

keen_watcher wrote:Unfortunately, in our not-too-perfect world, airlines (and their mangers) are short-sighted, cash-hungry, commercial and not-too-charitable organizations... downturn and/or difficulities of Airbus is NOT of their grave concern!!!

Well SIA pretty much gave Airbus a gift by signing some letter for 40 XWBs, but Airbus deserved the order I think, they did what was told.. and then you have Emirates who pushed for the XWB, and until now ordered 0, and ILFC... And as far as compensation goes, I guess the airlines deserves it... firstly they took the risk to be launch customers, second, with the delay they either have to lease other aircrafts to cover for it, or delay their growth which can be costly..

bits44 · Post by **bits44** » 14 Oct 2006, 16:54

Emirates will lease up to seven 777's to fill gap.

http://tinyurl.com/ttxmg

Aviation24.be

A380 - Airline Compensation

A380 - Airline Compensation

Emirates to lease 777's