Emirates confirms delay on deliveries

Published 9:00 pm Sunday, April 2, 2006

Over the weekend, officials with the airline confirmed last week’s reports that they had decided not to take their scheduled deliveries of 20 A340-600s, and will instead wait for Airbus to design an improved version of the long-range four-engine jet.

http://www.khaleejtimes.com/DisplayArticle.asp?xfile=data/business/2006/April/business_April18.xml§ion=business&col=

Key Quote: “Simon said the Dubai-based carrier is only interested in an enhanced version of the plane. ‘We have been in contact with the Airbus manufacturer with this request and we are looking to defer the delivery of these orders until the manufacturer comes back with clearer plans about an enhanced version of the aircraft.’”

Agence France-Presse notes http://www.antara.co.id/en/seenws/index.php?id=10872 that Airbus has struggled to sell A340s because they burn more fuel than Boeing’s twin-engine 777s. In response, Airbus seems to be slashing prices, AFP said.

Key Quote: “‘With the 777, Boeing has a better product that uses less fuel,’ the head of India’s low-coast Kingfisher airline, Vijay Mallya, told AFP in February. ‘Nevertheless, we are contemplating buying the A340 all the same, if we can come to an agreement on the price.’”

Analysts say Airbus has been slashing about 30 percent off the list prices of its A340-500s and -600s, which list for an average $212 million each.