EADS: Further Delays on Superjumbo Deliveries

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European Aeronautics Defence & Space Co., or EADS, announced a further 12-month delay to its troubled Airbus A380 superjumbo late Tuesday, saying the new holdups will shave an additional EUR2.8 billion from its operating profits over the next four years.

EADS immediately said it will launch a new restructuring plan designed to cut costs and improve productivity at its Airbus unit and promised a probe into possible management responsibility for the delays to the A380 program.

Air France became the latest airline Thursday to confirm a delay in deliveries of Airbus’ troubled A380 superjumbo.

In a statement, Air France said it does not now expect its first aircraft to be delivered until Spring 2009, 12 months later than scheduled.

Air France called the delay “regrettable,” but stressed it wouldn’t have any impact on the airline’s growth strategy.

“The flexible fleet management policy conducted by Air France for many years now allows us to pursue growth in capacity by extending the operating period of older aircraft,” the airline said.

Air France said talks with Airbus “will be continued in order to define the terms of our financial compensation” resulting from the fresh delays. A spokeswoman for the French airline declined to make any further comment.

Air France’s statement follows earlier confirmations by the Dubai-based Emirates Airlines and Germany’s Lufthansa AG that they were both expecting significant delays in deliveries of the A380, the world’s biggest jetliner.


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