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Europe
Airbus sets aside 1.0 billion euros for A380 compensation
2006-10-10
It won't be enough.
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.
Posted by:Steve White

#11  There is more to this for AirBus. They've been trying to get every A380 system they can into A400M production version.

This way they get paid twice for much of the development and production of A380. Systems that end up in A400M (or another military hauler) would be spread over greater numbers than just A380. Although, the accounting is ovbiously separate, the scale of economy is not.

Their project leadership auroa is gone now. Integration of the systems into other projects may not be a given now.

However, RR, has not stopped on Trent 900. Design refinement continues as does design for the support equipment (stands, lifts, etc). They'll still continue production and testing cycles. When necessary they'll scale up.
Posted by: bombay   2006-10-10 23:12  

#10  Thanks for filling in the blanks Zen and Spec Ops.
And in other Airbus news; while they can't build a working A 380, they are looking at ways to shuffle production around to revive the A350 ( the one that got severly critiqued at the Airshow earlier tis year) they want to move production out of Germany and consolidate it in France. That has the Germans in an uproar, and rightly so. This whole farce reminds me of the failed MacDonnel-Douglas /General Dynamics Navy A-12 fiasco fo the recent past. Trying to make a 50/50 proposition work and keep everybody happy at the expense of efficient production. In the end all you end up with is a pised off customer base, a pile of partially completed airplanes / parts and the competition gets the work. Funny how in both cases Boeing is the winner ( Yes I know that Mac D originally designe and built the Lawn Dart(Hornet), but Boeing's name is on the grille now).
Posted by: USN, ret.   2006-10-10 14:28  

#9  USN, Ret.,

I believe that was in Aviation Week. Really the most important comment of all on the health of the program. No confidence.
Posted by: SpecOp35   2006-10-10 11:17  

#8  I think the A380 will be the final nail in Airbus' coffin. They will still be around, but only to make smaller planes that Boeing won't and to make parts for their exsisting fleet.
Posted by: DarthVader   2006-10-10 10:10  

#7  EADS, Dieing a slow death while Boeing's production line get busy. Gotta love the US aviation industry.
Posted by: 49 Pan   2006-10-10 07:50  

#6  Barely literate... appalling English.

(AFP)
Posted by: Nimble Spemble   2006-10-10 06:37  

#5  Airbus has not made no provisions however to cover possible cancellations from airlines

Barely literate... appalling English.
Posted by: Howard UK   2006-10-10 06:36  

#4  Makes the Concord(e) look like a profitable plane.
Posted by: Nimble Spemble   2006-10-10 06:33  

#3  "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 sound of the other shoe dropping.

Posted by: TZSenator   2006-10-10 04:57  

#2  Someone mentioned it in passing while posting to yesterday's thread about massive delay compensation being paid out by EAD. Here's a link.

"Aero-engine maker Rolls-Royce said on Friday it had suspended work on the Trent 900 engine for the Airbus A380 superjumbo for about 12 months."
Posted by: Zenster   2006-10-10 03:18  

#1  Can anyone confirm that Rolls Royce has stopped work on the A380 engine program? I picked that up this past weekend, cannot remember where, and have not seen it in any publication. And no, I was not reading with beer goggles on....
Posted by: USN,Ret   2006-10-10 01:10  

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