Further delays likely with A380?

[corsair67]

Interesting that the airlines seem to be finding out that there are further potential delays with deliverys via the media, and not through Airbus.

Airbus need to work on their PR skills somewhat.


From this morning's The Australian.



Wiring problems may delay the A380
Geoffrey Thomas
September 14, 2006.


DELIVERY of the giant Airbus A380, destined to be the flagship of Qantas's international fleet, may be pushed out to 2008 - nearly two years late - after reports of yet more production delays.
Steven Udvar-Hazy, the chairman of aircraft leasing giant International Lease Finance Corporation, reportedly told a US conference that a third delay was likely.

Speaking at a private function arranged by US industry journal Airways in Seattle, Mr Udvar-Hazy told guests that problems with wiring, required to customise the super jumbo for airlines, were "worse than expected". He said that he had learnt of the new delay on Friday last week.

An industry consultant reporting on the event also quoted sources as saying as few as four A380s would be delivered next year.

Leehman Company's Scott Hamilton said all four planes would go to Singapore Airlines, which would get a "ceremonial delivery" at the end of this year.

Airbus insiders have also told The Australian that Qantas would possibly not get its first aircraft until the first quarter of 2008, despite the fact that its first A380 is presently in final assembly.

Emirates and Qantas - which has already received $140 million in compensation for earlier delays - said yesterday they had yet to be told of any further hitches in the delivery schedule for the super jumbo.

The reported delays would mark yet another embarrassment for Airbus, which has been fighting with Boeing to build its presence in major airline fleets.

The A380, which carries up to 555 passengers, was pitched to airlines to maximise their passenger load at crowded airports where additional landing spots are expensive and hard to come by. Emirates confirmed yesterday that it was aware of rumours of another delay but it had not tackled Airbus on the issue.

"As far as we are concerned we are waiting to take delivery of our first A380 in October 2007," a spokesman said.

That view was echoed by Qantas chief financial officer Peter Gregg. "We have been told by Airbus that we will get our first A380 in October 2007," Mr Gregg said. "Airbus has also informed us they are continuing to evaluate the delivery program and this will be finalised at the end of September."

Qantas was due to get its first A380 in October this year but that was pushed out in June, 2005, to next May.

On June 13, Airbus announced a "shift in the production" of between six and seven months which pushed Qantas's first A380 out to October next year.

That delay forced the resignations in July of former Airbus CEO Gustav Humbert and EADS (Airbus' owner) co-CEO Noel Forgeard. Last week, highly respected A380 program head Charles Champion was replaced and his sudden departure from the key position is seen as confirmation of a further delay.

New Airbus chief executive Christian Streiff committed the manufacturer to an exhaustive analysis of the A380 program in June with a deadline of mid-September to report to the board. Airbus management is expected to meet next week to assess the full extent of the problems and how best to deal with them.

Singapore Airlines was hoping to put the giant jet into service for the Christmas peak season but this is now not expected until February or March next year.

[flyjoe180]

What a shocker for Airbus. I presume Singapore Airlines was imposing the harshest penalties for delayed deliveries, and so QANTAS misses out. Such a huge project had to carry a large risk that something of this nature might happen. Boeing nearly crippled itself with the Boeing 747 in the 1960's and early 1970's, that should have been lesson enough for anyone else. Has anyone read 'Widebody, the making of the Boeing 747' by Clive Irving (ISBN 0340534877)? Awesome book and a great insight to how the 'Jumbo' came into being.

[corsair67]

And it just keeps on getting better for Airbus.

From this morning's The Australian.


BAE boss sees more A380 delays
Steve Creedy, Aviation writer
September 15, 2006.

FURTHER evidence of new delays in the troubled A380 program emerged yesterday with the chief executive of the European manufacturer's estranged equity partner backing reports of additional hitches.
BAE Systems chief executive Mike Turner told a London press conference: "I would be surprised if there were not more delays."

Mr Turner said BAE knew of "significant delays" 15 months before they were announced, but was unaware of significant cost overruns in the project, originally projected to cost $US11 billion ($14.6 billion).

"There was uncertainty about how long the delays would be and Airbus thought 'in August, we will know how long'," he said. "(Airbus's owner) EADS is still not sure when the planes will be delivered."

The indications of continuing turmoil at the European plane maker came as Airbus was refusing to rule out suggestions the first Qantas plane may be delayed until 2008.

Qantas chief executive Geoff Dixon and chief financial officer Peter Gregg met with Airbus chief executive Christian Streiff last week.

Qantas is already receiving $140 million compensation for existing delays which pushed back the delivery of Qantas aircraft to next October.

Mr Gregg said at this stage there had been no change to the October delivery date, but noted that the whole A380 program was being reviewed.

"Look, I don't think it would surprise anybody if there were further delays, but we don't know that until that review is completed," he said.

Airbus yesterday reiterated its stock response since June that the new chief executive was reviewing the program and would report by the northern winter.

This was despite reported comments by Steven Udvar-Hazy, chairman of leasing giant International Lease Financing Corporation, to a US conference that a third delay in the giant plane was likely.

As revealed by The Australian, Mr Udvar-Hazy told the conference wiring problems required to customise the superjumbo were worse than expected.

The conference was reportedly told that only four A380s would be delivered next year, and all of these would go to Singapore Airlines.

Airbus insiders told The Australian that Qantas would possibly not get its first aircraft until the first quarter of 2008.

Other sources have confirmed there would be delays, but say the extent will not be known until Airbus finalises the result of its review, possibly as early as next week.

Airbus was caught out by the complexity involved in customising wiring needed to support premium class cabins.

The three carriers to get the planes first have all gone for different premium cabin configurations and inflight entertainment systems. The manufacturer is understood to be redesigning its production line in an attempt to address the problem.

Airbus angered airlines when it failed to keep them informed of the problems before its announcement of a second six-month delay in June.

It said at the time that the problem could wipe E2 billion ($3.4 billion) off its operating profit over three years as it slashed next year's deliveries from 20 to nine and experienced shortfalls in 2008 and 2009.

That delay forced the resignations in July of former Airbus chief executive Gustav Humbert and EADS co-chief executive Noel Forgeard.

Last week, highly respected head of the A380 program, Charles Champion, was replaced. His sudden departure from the key position is seen as confirmation of a further delay.

Ironically, test results from the four A380s currently flying have all met or exceeded expectations.

[corsair67]

And now confirmed!

Wanna buy a 787? ;D


Superjumbo stalled another year
Steve Creedy, Aviation writer
October 04, 2006.

DELIVERIES of Airbus's flagship A380 superjumbo will be delayed for up to another year after problems at the European manufacturer turned out to be worse than thought.
The extra delay is likely to put off the superjumbo's entry into service on the Singapore-Sydney route until later next year and see Qantas deliveries delayed well into 2008.

The board of Airbus parent company EADS met yesterday and was expected to confirm as early as today that the troubled program's third delay would be longer than airlines were initially led to believe. Deliveries are also expected to be slower.

Airbus insiders last month gave some hint of the extent of the problem when they warned that deliveries to Qantas and Emirates, already delayed twice, would not take place until the first quarter of 2008.

Speculation yesterday was that Airbus's new production schedule would mean those deliveries would now not take place until later that year, putting them two years behind.

There were also suggestions delivery of the first plane to Singapore Airlines would be put back from December to the second half of next year. Singapore had planned to launch the aircraft this year and had been running an extensive campaign telling people it would be first to fly the A380. The delay will force the launch airlines to find other planes to service planned A380 routes and angry carriers will claim further compensation, already estimated to be costing Airbus E2 billion ($3.4 billion). Qantas has already booked $104 million in compensation for the first two delays to its 12 A380s and has indicated it will seek additional compensation for further delays.

The Australian carrier was to get its first plane this month but that was pushed out in June, 2005, to next May before Airbus in June announced a second delay to next October.

The delay also presents difficulties for carriers planning to use the plane for unveiling new cabin interiors.

Even more worrying for Airbus officials is that Emirates, the largest A380 customer with 45 confirmed orders, could cancel some deliveries.

The manufacturer has flagged big job cuts to help pay for the losses and is believed to be planning a significantly redesigned production process for aircraft not already under construction. The European manufacturer was caught out by the complexity involved in customising wiring to support premium class cabins.

It angered airlines when it failed to keep them informed of the problems prior to its announcement of a second six-month delay in June.

That delay forced the resignations in July of former Airbus chief executive Gustav Humbert and EADS (Airbus's owner) co-chief executive Noel Forgeard. They were followed in September by A380 program head Charles Champion as new chief executive Christian Streiff ordered a review of the entire program.

[corsair67]

Jesus, someone ought to make a movie out this saga!


This story is from The Times

Production delays feared as Airbus CEO departs
Steve Creedy Aviation writer
October 10, 2006.


AIRLINES are seeking assurances that the shock resignation of new Airbus chief executive Christian Streiff will not add to the two-year delay they are already facing in the delivery of the flagship A380 superjumbo.

The crisis facing European manufacturer deepened overnight after the resignation of Mr Streiff, the architect of a reform plan designed to save the embattled manufacturer, only 100 days into his reign.

Mr Streiff was instrumental in assuring airlines such as Qantas, which has 12 A380s on order, that Airbus was prepared to face up to its problems and had a plan to get its troubled production line back on track.

But by last week that plan was beginning to unravel. Mr Streiff faced boardroom resistance to a proposed restructure as he was forced to unveil additional delays of up to a year with the A380 superjumbos.

Executives also indicated there was some doubt over the A350 program designed to counter Boeing’s mid-size 787 Dreamliner.

Mr Streiff, who inherited the mess at Airbus, was particularly keen to address cultural and efficiency problems at the manufacturer.

However, his plan appears to have fallen foul of Franco-German politics and he resigned yesterday saying he hoped his departure would deliver a ”salutary shock" to the company.

In an Interview with French daily Le Figaro, Mr Streiff said he had not been given the ”operational powers” needed to do the job and overcome shareholder resistance to production changes needed to deliver savings.

“I hope this will be a salutary shock that will oblige Airbus to rethink its governance and evolve positively," he said.

Mr Streiff will be replaced by Louise Gallois, who headed France’s state-owned railway before joining EADS in June.

[flyjoe180]

When you look at the difficulties Boeing faced with the 747 in the late 60's and early 70's, one can't imagine the size of the problems Airbus are facing today, both technologically and financially. The politics of collaboration between countries has also go to be a big hurdle. EU leaders must also be watching this saga with great concern. CEO No.3...

[corsair67]

Yep, they just can't get the Germans and the Frenchs to work together. ;D

It's amazing in this day and age that with all the wizz bang computer aided design tools and simulation software that a project can run into so much difficulty and misfortune. I think mismanagement has also played a huge part in this saga though, and Airbus certainly need to do some quick work to sort this out or they may not be around in 10-20 year's time.

Emirates, Singapore and QANTAS must be really spewing at the moment.

[corsair67]

I guess this recalculation was to be expected after all the problems with the A380 program.


Airbus needs $103bn A380 sales
David Robertson
October 21, 2006.


AIRBUS needs to win orders worth about $US78 billion ($103 billion) before its troubled A380 superjumbo project breaks even.
Airbus, a division of the European defence group EADS, has increased the break-even point for the project to 420 aeroplanes, from last year's forecast of 270.

The aircraft manufacturer told analysts at a presentation in Hamburg that increased costs and compensation payments for delivery delays have pushed back the point of profitability.

The Toulouse-based company has so far sold 159 of the double-decker aeroplanes in the six years since its official launch. It must now sell a further 261 before it can turn a profit on the project.

The A380 has a list price of about $US300 million, meaning that the company must win orders worth $US78.3 billion before break-even.

Despite this daunting figure Airbus remains confident it can eventually sell 750 planes, although analysts are becoming sceptical. One said: "The A380 is going to be a white elephant. There is no way they are going to sell that many."

However, Airbus sees hope in the long life of Boeing's 747, the A380 smaller rival.

The 747 entered service in 1970 and after a difficult start has gone on to be an enormous success.

Airbus has been wracked by problems this year, particularly with the A380 project. Difficulties in wiring the aircraft have led to significant production delays and earlier this month the company was forced to tell customers that it will now be delivered two years late.

A number of airlines, including Emirates, Singapore and Virgin, are reconsidering their orders, which could force Airbus to sell even more aircraft to reach break-even.

The Times

[turboNZ]

Very "Enron"-ish......