Tuesday, October 03, 2006

A380 jet to be delayed a year, customers not happy.

Bidness: As Boeing does a dance with huge amounts of alcohol being consumed in celebration.

PARIS (AP) -- Airbus parent EADS said Tuesday that the flagship A380 superjumbo jet will be delayed for another year and Virgin Atlantic and Emirates -- the plane's biggest customer -- hinted that the new setbacks could lead to order cancelations. In a statement issued after its second board meeting in four days, EADS said the latest delays will cut an extra 2.8 billion euros ($3.6 billion) off operating profit and announced a restructuring plan to cut costs and boost productivity at Airbus. Airbus sees "no significant signs" that cancelations are likely from any of its A380 customers, CEO Christian Streiff said during a conference call with reporters and analysts. "Until now, everybody's still on board." But Dubai-based Emirates signaled that its bumper 45-plane order, worth over $13 billion at list prices, could be in doubt after suffering a further delay of 10 months. "This is a very serious issue for Emirates and the company is now reviewing all its options," Chief Executive Tim Clark said in an e-mailed statement. Virgin Atlantic Airways Ltd. spokesman Paul Charles said the carrier will be reviewing its six-plane order at an Oct. 12 board meeting, with "all options" on the table. "The depths of the delays have serious implications," he said.
This pic says it all at this point.

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