time to start cooking crow?
3 October 2006
According to Bloomberg, Emirates is ‘reviewing its options’ after being informed that Airbus might push delivery of the first A380s out to 2008 or even, says IAG, to 2009. IAG also suggests that Emirates might cancel half of their A380 orders and pick up 747-8 Intercontinentals instead.
What I wrote yesterday still stands – Airbus is paying airlines out the nose in compensation. Apparently there is a point at which the delays cancel out the monetary gain. If Emirates starts dropping A380 orders, other impatient customers, like Virgin Atlantic, may soon follow.
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Eric, I would tend to think that at some point Emirates and the other airlines may begin to think that the problems are something that Airbus may not be able to overcome. Compensation or discounts aside, Airbus will have to deliver on their promise some time if they wish to continue to exist.
Agreed. It’s going to take quite a while for the A380 to turn a profit at this rate – and possibly it never will.
The monetary problems associated with launching and discounting the A380 are now going to affect the introduction of the A350. It’s certainly not going to help the chances of the A320 / 737 replacement. The 787-funded Boeing is on much stronger financial footing right now, provided there aren’t equal difficulties with that program.