Airbus to pay millions in compensation for late deliveries

Airbus to pay millions in compensation for late deliveries

Talk about having too many orders in your hand. Airbus would know the feeling as they have announced that the compensation they would be paying to their waiting customers would run into millions for delaying the deliveries of the ordered planes. The world’s largest maker of aircrafts is finding it hard to deliver its A380 jetliners on time.

Some of the airline companies suffering from these delays are Singapore Airlines, Qantas Airways Ltd. and Malaysian Airline System Bhd. who are now seeking compensation from the airline maker. The deliveries in some cases are as late as six months in some cases. Airbus Chief Commercial Officer John Leahy told a media group about this: “Remember, the airplane costs about $285 million a copy, so I think it is safe to say we are talking about a couple of million dollars.”

He refused to reveal the exact figures and just mentioned: “But let’s not get into detail that’s confidential between us and the customer”. Qantas has ordered 12 of these planes with Singapore Air waiting for 10 A380s of their own. A380 is currently the world’s largest passenger plane with capacity of carrying as many as 555 passengers in a standard configuration.

Airbus currently has in hand orders for around 159 A380 planes.

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