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Virgin defers A380 by four years | Virgin defers A380 by four years |
(4 days later) | |
Virgin Atlantic is to defer its order for the new Airbus A380 by four years. | Virgin Atlantic is to defer its order for the new Airbus A380 by four years. |
The airline had ordered six of the new superjumbos for delivery in 2009, but now wants to delay their arrival until 2013. | The airline had ordered six of the new superjumbos for delivery in 2009, but now wants to delay their arrival until 2013. |
The project has been dogged by repeated delays, which have cost senior managers their jobs and led to big customers threatening to renegotiate orders. | The project has been dogged by repeated delays, which have cost senior managers their jobs and led to big customers threatening to renegotiate orders. |
There had been speculation that Virgin would ditch the A380, but the firm says it still has confidence in the plane. | There had been speculation that Virgin would ditch the A380, but the firm says it still has confidence in the plane. |
Virgin is now arguing that it wants the aircraft to prove itself in commercial service for several years before it puts its own A380s into operation. | Virgin is now arguing that it wants the aircraft to prove itself in commercial service for several years before it puts its own A380s into operation. |
The airline is now extending its leases on a number of Boeing 747-400 jumbo jets to cover the delay. | The airline is now extending its leases on a number of Boeing 747-400 jumbo jets to cover the delay. |
BBC business correspondent Hugh Pym said the decision followed what one source described as "tough negotiations on price and other issues". | BBC business correspondent Hugh Pym said the decision followed what one source described as "tough negotiations on price and other issues". |
A380 ORDERS SO FAR Emirates: 43 aircraftLufthansa: 15Qantas: 12Air France: 10Singapore Airlines: 10Fedex: 10International Lease Finance: 10UPS: 10Thai Airways: 6Virgin Atlantic: 6Korean Air Lines: 5Etihad Airways: 4Qatar Airways: 2China Southern Airlines: 5Kingfisher Airlines: 5Malaysia Airlines: 6 Source: Airbus See EADS share price Analysis: Airbus problems | |
In June this year, Airbus had told Virgin that it might face a six-month delay in delivery, thanks to the wiring and other problems which have emerged. | In June this year, Airbus had told Virgin that it might face a six-month delay in delivery, thanks to the wiring and other problems which have emerged. |
Originally Virgin had wanted the aircraft this year. | Originally Virgin had wanted the aircraft this year. |
Renegotiations | Renegotiations |
The problems with the A380 have forced Airbus - owned by European group EADS - to issue three warnings of delays in the past two years. | The problems with the A380 have forced Airbus - owned by European group EADS - to issue three warnings of delays in the past two years. |
The most recent was in October, when the firm, which has orders for 159 aircraft so far, told its customers they could face delays of up to two years. | The most recent was in October, when the firm, which has orders for 159 aircraft so far, told its customers they could face delays of up to two years. |
Airbus is now expecting to deliver the first aircraft to Singapore Airlines in October 2007, almost two years behind the original schedule. | Airbus is now expecting to deliver the first aircraft to Singapore Airlines in October 2007, almost two years behind the original schedule. |
As a result of the repeated hold-ups, most of Airbus's A380 customers are deep in negotiations in the hope of improving the terms on which they are buying the aircraft. | As a result of the repeated hold-ups, most of Airbus's A380 customers are deep in negotiations in the hope of improving the terms on which they are buying the aircraft. |
Shortly after Airbus's October announcement, Emirates - the single biggest customer with 43 planes - warned that it might cancel some of its order. | Shortly after Airbus's October announcement, Emirates - the single biggest customer with 43 planes - warned that it might cancel some of its order. |
The delays also mean the project is costing Airbus vastly more than originally expected. | The delays also mean the project is costing Airbus vastly more than originally expected. |
EADS now says it will have to sell 420 aircraft - more than half the total it hopes to sell in the entire service life of the A380 - to break even, rather than the 270 it originally estimated. | EADS now says it will have to sell 420 aircraft - more than half the total it hopes to sell in the entire service life of the A380 - to break even, rather than the 270 it originally estimated. |