SFGate: Qantas, Aribus Strike A380s, A330s Deal

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Sunday, October 29, 2006 (AP)
Qantas, Aribus Strike A380s, A330s Deal



   (10-29) 12:26 PST SYDNEY, (AP) --

   Australia's Qantas Airways Ltd., one of the global airlines that had been
in compensation talks with Airbus over A380 delivery delays, Sunday said
it has ordered another eight of the superjumbos.

   "We have negotiated an attractive 'package' to firm up an additional eig=
ht
A380s," Qantas Chief Executive Geoff Dixon said in a statement.

   "The package also includes an additional four A330-200 aircraft which wi=
ll
help Qantas mitigate capacity concerns associated with the delay of the
airline's first A380s," Dixon added.

   A Qantas spokesman wouldn't comment on the terms of the deal, which come
at a time when other major carriers are seeking compensation from the
European airplane manufacturer, and analysts speculate that some orders
for the $300 million plane may be canceled.

   The spokesman also said terms of a deal with Boeing Co. to buy five
B737-800s for use in the domestic market wouldn't be revealed.

   Dixon said the new Airbus contract includes "protection against any
further delay in the A380 delivery schedule and slide rights in the event
of changed circumstances". He said the planes will be either bought or
leased.

   The 737s will be delivered from February 2008, while the A380s will be
delivered between August 2008 and 2015.

   Qantas, one of the A380 "launch airlines" along with Singapore Airlines
Ltd. and Emirates Airlines, now has 20 A380s on order. Its original order
six years ago was for 12 planes and options on another 12.

   The national carrier said earlier this month that it was reviewing its
capacity needs following the most recent delivery delay, which meant the
first A380 would be delivered about two years late.

   "Our decision to increase our order has been made after an extensive
review of the recent problems at Airbus and the delivery schedule delays
of the A380," Dixon said in Sunday's statement.

   "We are convinced that these problems relate to industrialization issues
at Airbus and will be remedied, and in now way relate to the technical
capacity of the A380."

   Singapore Airlines is set to receive the first A380 in October next year=
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Copyright 2006 AP

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