New round of delays could spell trouble for Airbus superjumbo.
Airbus is poised to admit today that its beleaguered Airbus A380 program now will fall nearly two years behind schedule, Reuters reports. And that apparently has some of the superjumbo's top buyers rethinking their orders. Emirates, for example, was informed by Airbus of an additional 10-month delay for its A380 delivery dates. Emirates -- the top buyer of the A380 -- responded by saying that airline's order is now "up in the air," according to The Associated Press. Emirates President Tim Clark adds: "Our first aircraft will now arrive in August 2008. This is a very serious issue for Emirates and the company is now reviewing all its options." Airbus A380 program was already about a year behind schedule when the latest problems came to light. "Virgin Atlantic Airways also said the delay could affect its order for six superjumbos," AP writes. Reuters cites "one newspaper report" as saying that Airbus may now deliver just two A380s in 2007 -– down from its original projection of 20-25. Just in June, Airbus had downgraded its projected 2007 delivery estimate to nine.
Even a hint of losing Emirates as a customer would likely have huge repercussions for Airbus's A380 program. Emirates is Airbus's single-largest buyer for the A380, accounting for about a third of the company's orders for the superjumbo, according to Reuters. Airbus's A380 issues could spill over into other areas at the company. CNN writes that the A380 woes have started "eating into cash Airbus needs to redeploy to its A350 project." And beyond practical issues, the troubled A380 could be leading to a crisis of confidence at the European jetmaker. German publication Spiegel addresses that idea, writing that "the superjumbo A380 was supposed to become a symbol for Airbus's superiority and Boeing's decline. But it hasn't turned out that way. Instead, the prestige project could turn in to a symbol for the Europeans' aerospace downfall."