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Airbus deals can't weather the storm
Emirates has a right to ask for compensation for the failure to deliver A380 on time
- Gulf News
- Published: 00:00 December 27, 2006
Airbus' woes continue to mount, with Emirates and other airlines pushing for compensation for late delivery of the A380 superjumbo.
Basically, the company fell into a very basic bad business trap - over-promising and under-delivering. Already delivery of the A380 is delayed by two years, which may cost the company roughly $6 billion in profits.
The breakdown that led to the delay reads like a business comedy of errors. Miscommunication between plants in Germany and France resulted in wiring in the front and back half of the planes - which should have just snapped together - not matching.
What is even more difficult is watching Airbus stagger and stumble, even though they have a great product. Now, the company is mired in management shifts and back-pedalling on delivery deadlines.
Emirates, which has 45 of the massive jets on order, has every right to ask for compensation, since the delay will probably hamper any efforts to expand existing routes or open new ones.
And now the airline is planning to rent planes from Boeing to fill the gap until the new Airbus jets arrive.
Just remember - never count your planes before they leave the factory floor.
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