=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/n/a/2005/11/06/financial/= f143126S09.DTL --------------------------------------------------------------------- Sunday, November 6, 2005 (AP) Airbus Eyes More Sales in Asia By EILEEN NG, Associated Press Writer (11-06) 14:31 PST KUALA LUMPUR, Malaysia (AP) -- The Airbus superjumbo A380 makes its maiden test flight out of Europe th= is week with a three-nation tour of Asia-Pacific, a core market for the European jet maker as it seeks to woo more airlines in the region. But the trip is already off to an inauspicious start even before it begins. The visit to Singapore, Malaysia and Australia to check airport readiness and test the long-range capability of the world's largest passenger jet a year before it enters commercial service has been delayed three days due to technical problems. Airbus said Saturday it has put off the departure of an A380 prototype from France in order to replace two of the plane's four engines as a "precautionary measure" at Rolls-Royce's request, but did not elaborate on the problems. The double-decker mega jet is to land in Singapore on Friday instead of Tuesday, and then fly to Sydney, Melbourne and Brisbane, for the 85th birthday celebrations of Australian carrier Qantas, which has ordered 12 of the jets. It heads to Malaysia on Nov. 17. Airbus has already pushed back A380 delivery dates for some Asian airlines, so this additional delay — and what might be behind it — is an embarrassment for the company as it tries to make a splash in Asia and entice more buyers. Seven carriers in the region have ordered a total of 49 A380s, accounting for 31 percent of 159 firm orders for the super jumbo so far. "There were already production delays earlier which angered some customers, so the Asian tour is an important marketing run for the A380. If successful, it can help convince other Asian carriers to come on board," said Vince Ng, aviation analyst with Mayban Securities in Kuala Lumpur. But he said Airbus, which has two training and spare parts centers in As= ia based in Singapore and Beijing, must assure airlines that maintenance costs for the A380 are reasonable. Singapore Airlines, which has ordered 10 A380s with an option to buy five more, is set to be the first carrier to operate the A380. But in August, it criticized Airbus for delaying the first delivery from March 2006 to November 2006. Malaysia Airline, which owns Southeast Asia's biggest passenger plane fleet, is seeking compensation after Airbus postponed delivery of the first of six A380s by six months to July 2007. Other A380 customers in the region are Thai Airways, Korean Air, China Southern Airlines and India's Kingfisher Airlines. Despite production problems and irate customers, Airbus is optimistic about the future of the A380, which eclipses the Boeing 747 as the world's biggest commercial jetliner. By 2023, Airbus predicts the world's major airlines will need 1,250 very large, fuel-efficient aircraft like the A380 to cater to rapid growth in intercontinental travel. The A380, which has a list price of $292 million, can typically carry 555 passengers in three classes, but can be expanded to accommodate as many as 800 people with a single economy-class configuration. China and India are key growth markets, Airbus says, noting that current A380 customers have made plans that will result in 130 weekly A380 flights to China alone by 2010. Airbus also hopes the jet will help it maintain its recent edge over archrival Boeing Co., whose aircraft deliveries appear to have fallen behind Airbus this year for the third straight year. Boeing expects to deliver 290 airplanes this year, while Airbus expects to deliver 370. Asia's travel industry is hopeful that the A380, which Airbus says can c= ut airlines' operating costs by as much as 20 percent, will lead to a revolution in cheaper air fares and bring a new experience in taking long-haul flights. "We are excited because the A380 will create downward pressure on airfare and put some novelty and pleasure back into air travel," said Ken Scott, communications director of the Bangkok-based Pacific-Asia Travel Association, which has some 1,000 members in the region. "It's good news for consumers and it will force airlines to revisit their marketing and pricing strategies." However, with energy costs soaring, there may not be much room to cut airfares. "The oil price factor is the joker in the pack," Scott said. "Regardless of the type of aircraft, if oil prices dodge ahead, it will depress demand for air travel." ----------------------------------------------------------= ------------ Copyright 2005 AP