Emirates expects Airbus to take a massive write off
Dubai-based Emirates says that it expects Airbus to take a “massive write-off” after the airline and the manufacturer negotiate late charges for delayed deliveries of the Airbus A380 superjumbo.
Emirates President Tim Clark said in this week’s issue of Flight International magazine, “I am sure we will come to a compromise, which Airbus will take as a massive write-off”.
He added, “We now have a figure, and in the next few weeks we will begin talking,” with an Airbus spokesman declining to comment.
Emirates has ordered 43 of the USD$300 million aircraft, making it by far the largest buyer, the delay of the aircraft triggering demands for late fees to be paid to carriers, which must make often expensive alternative plans until the A380.
It appears that troubles with the wiring of the massive double-deck aircraft has delayed deliveries by about two years, with Singapore Airlines is now expected to take the first delivery late this year.
Emirates was originally scheduled to begin taking the aircraft in April 2006 but now will not see its first A380 until August 2008, with Clark saying that Emirates expected to grow by 14% in the year to April 2008, versus an estimated 30% if the A380s had been delivered on schedule.
In October, Clark told reporters that the difference equated to a revenue shortfall of “hundreds of millions of dollars” also saying that the A380 was running 5.5 tonnes overweight, which would be another topic of discussion regarding performance guarantees, which are part of the order.
Emirates is not only a huge customer for the A380 but the airline is also looking to buy as many as 100 mid-sized, long-range planes, with Airbus offering its A350 XWB due in 2013 versus Boeing’s 787 due in 2008 for a deal that could be worth USD$15 billion at list prices.
The cash registers are ringing in Dubai!
Report by The Mole
John Alwyn-Jones
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