Friday, October 06, 2006

Airbus discussing compensation with Asian A380 customers

Airbus said it's discussing compensation with Asian customers over the latest delay in the delivery of its A380 superjumbo, and according to one investment bank, may have to pay up to S$300 million ($189 million) to Singapore Airlines Ltd. alone.
"Financial compensation issues are discussed with the customers and remain of confidential nature," Airbus spokesman Anthony Phillips told Dow Jones Newswires.
Asia-Pacific airlines are considering how to mitigate the impact on capacity expansion plans from the latest delay.
Other Asian carriers with smaller orders include Thai Airways International PCL , Malaysian Airline System BHD , India's Kingfisher Airlines, Korean Air Co. Ltd. and China Southern Airlines Co. Ltd. Morgan Stanley estimates the A380's launch customer, Singapore Airlines, could get compensation of S$200 million to S$300 million from the European aircraft maker.
This could boost the carrier's earnings per share for the current fiscal year ending March 2007 by 11%-17%, the bank said in a report.
05/10/06 Costas Paris/Dow Jones Newswires Singapore /MarketWatch
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