| Singapore orders 9 Airbus jumbos |
| Last Updated(Beijing Time):2006-12-21 11:13 |
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Airbus SAS, battling cancellations and deferrals on its 555-seat A380 airliner, won a contract from Singapore Airlines Ltd for nine additional A380s valued at US$2.7 billion yesterday, the first new order for the model in a year.
Singapore Airlines, Asia's most profitable carrier and an industry bellwether for aircraft purchases, already had 10 A380s on order. The carrier signed a contract yesterday to take delivery of nine more A380s, and took options for another six A380s, after an initial agreement in July, Chief Executive Officer Chew Choon Seng said yesterday at a press conference in Singapore.
The airline has also reached a "satisfactory agreement" with Toulouse, France-based Airbus on compensation for delivery delays for the first set of A380s, Chew said, declining to disclose the terms. Airbus is running two years behind schedule on the A380, whose production has been held up by difficulties in installing 480 kilometers of wiring in each aircraft, Bloombegr News said.
European and US regulators certified the A380 for flight on December 12, making it the largest plane ever approved for transporting passengers. The plane has now fulfilled technical criteria for approval to fly commercially.
"I have stated before that I believe in the technical aspects of the design of the aircraft," Chew said. "The fact that the recent certification program was very successful is a testament to the soundness of the engineering behind the aircraft."
Singapore Airlines will receive its first A380 in October 2007, rather than this month as originally planned, with subsequent deliveries starting in 2008. The airline plans to fly the superjumbo from Singapore to London and Sydney initially.
Airbus's parent, European Aeronautic, Defence & Space Co, said on October 19 it will take years for the A380 to become profitable because of the production delays and cost overruns, with the project hurting EADS's profit by 4.8 billion euros (US$6.1 billion) through 2010.
The A380 program will break even with the delivery of the 420th A380, according to the latest analysis.
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