Big delays with delivery of Airbus superjumbos

The Airbus A380

Airlines revealed production troubles on the Airbus A380 superjumbo will now delay it by two years, putting a board meeting at parent EADS under fresh pressure to map out how it will get the US$15 billion programme back on track.

Emirates, the biggest buyer of the A380 with 43 on order worth US$13 billion at list prices, called the programme's latest delay "very serious" and warned it was reviewing how to respond.

"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," Emirates President Tim Clark said.

Emirates said its planes would come 10 months late, while Germany's Lufthansa said it now expected a fresh delay of a year.

Air France said it would receive its first A380 only by spring 2009. A spokeswoman said the original delivery target of spring 2007 had already been postponed by a year.

Virgin Atlantic also confirmed a delay in deliveries.

EADS had no comment.

One newspaper report said Airbus could slow 2007 deliveries to just two aircraft, down from a target of as many as 25 that was chopped to nine in June. Analysts have said Airbus needs to deliver about 300 of the planes to break even.

Airbus Chief Executive Christian Streiff was hired in July to sort out the company's woes and has pledged to put an end to the company's fitful performance on delivery of the A380 and launch of the mid-sized A350.

Streiff threatened to quit if his reforms were not adopted.

PRODUCTION SHAKE-UP

The EADS board, which was expected to meet by videoconference overnight (NZ time), has lined up a meeting tonight with the company's works council and managers.

Cost savings envisaged by Streiff could be as much as 2 billion euros, trade union sources told Reuters on Friday.

EADS acknowledged last month that fresh delays in the world's biggest airliner were likely but has not yet spelled out how big a delay or the likely costs.

At the time of its last delay in June, EADS announced a 2 billion euro profit warning through 2010.

Airbus faces rising compensation claims from airlines which will have to lease other planes until Airbus sorts out the wiring troubles holding back the A380.

Australian airline Qantas