Posted on 10/09/2006 9:00:39 AM PDT by Righty_McRight
LONDON (AFP) - European aircraft maker Airbus has set aside around 1.0 billion euros (1.26 billion dollars) to compensate airlines for delays in delivery of its troubled A380 superjumbo.
The Daily Telegraph newspaper said that the estimate, which was equivalent to 690 million pounds, was contained within the 4.8-billion-euro loss forecast last week as a result of chronic delays to the flagship A380.
Airbus has not made no provisions however to cover possible cancellations from airlines for the 134 orders taken so far, the report said Monday.
Airbus hoped it could "satisfy angry customers by either reducing the cost of the sales package or easing their pain with a compensation offer", the daily added.
Last week, Airbus parent EADS announced new delays for the A380, putting the programme nearly two years behind schedule and giving a major boost to US rival Boeing.
Dubai-based Emirates -- the biggest A380 customer with 45 planes on the order books -- was believed to be seeking compensation of around 150 million pounds for the hold-up, the Daily Telegraph said.
EADS and Airbus are locked in battle with Boeing for the huge future market for airliners and until last year Airbus appeared to be in a dominant position.
Meanwhile, Emirates announced plans on Sunday to buy 20 747-8 Freighter planes from US aerospace giant Boeing for a total of 5.6 billion dollars.
The European Aeronautic Defence and Space company (EADS) had said in a statement last Tuesday that it expected the A380 programme would cut expected cash flow by 6.3 billion euros from the previously estimated figure for the period 2006-2010.
Part of this was an increase of 1.5 billion euros in the working capital needed to run the business.
British group BAE Systems, which makes wings for Airbus, has decided to sell its holding of 20 percent in the manufacturer to EADS, which owns 80 percent, for about 2.75 billion euros.
Dang... I wished I had placed an order...
LOL! The solution to a financial and engineering disaster is to throw another billion Euros at it? These people are crazier than we originally thought!
ouch!
We should press the WTO to levy fines for that like they did to us because of our steel import tariffs.
This on top of the deep discounts and sweetheart package A380/A350 deals that Airbus cut with the launch customers.
'A380 profitability' is starting to sound like an oxymoron.
My song of the day is "Euro_In_the_Money"!
I certainly hope airbus wasn't planning on making any money off this bleeder.
i don't think it was meant to make money, rather it was meant (the first class section of course) to fly EU bureaucrats around, in style, with in-flight discoteques and bars, while the rest of the sheeple get to sit crammed away in stearage...
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