Qataris have second thoughts about A350

Airbus’ biggest A350 customer is reconsidering its order for the planes, according to reports from around Europe and the Middle East.

Qatar Airways chief executive Akbar Al-Baker seems irked about the long series of delays in the A350 program, Flight International reports. http://www.flightglobal.com/Articles/2006/05/22/Navigation/177/206815/Qatar+Airways+may+drop+plan+to+buy+Airbus+A350+due+to+uncertainty+over+twinjet’s.html

Key Quote: “’We are launch customer for an aircraft that, other than its model number, does not now exist. Qatar Airways is very unhappy about this,’ says Al Baker. He questions how Airbus will ‘address this issue with A350 customers who have placed deposits.’”

With the A350, Airbus can’t win for losing, it seems. The plane isn’t selling well, and key potential customers like International Lease Finance Corp. and Singapore Airlines are pressing for a complete overhaul of the design.

But the one airline that has really stepped up to buy the plane — Qatar Airways is in talks for 60 A350s — says don’t do it, according to the BBC. http://news.bbc.co.uk/1/hi/business/5004808.stm

Key Quote: “Qatar’s chief executive Akbar Al-Baker told the Reuters news agency that he was worried design changes to the A350 would delay its launch date.”

The problem is that a redesigned A350 likely won’t be ready for market until 2012. That would really mess up the airline’s fleet plans, according to Gulf Times, in Qatar. http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=87723&version=1&template_id=48&parent_id=28

Key Quote: “Baker said Qatar could not place an order until it knew the specifications of the new model and warned that delays created by an expected overhaul could upset the airlines’ plans.”

The Qataris have signed a letter of intent to take 60 A350s, but they’ve yet to make that order firm, notes The Peninsula, another English-language publication in Qatar. http://www.thepeninsulaqatar.com/Display_news.asp?section=Local_News&subsection=Qatar+News&month=May2006&file=Local_News2006052241329.xml

Key Quote: “Al Baker said no airline could afford to put a hold on its plans because a manufacturer could not deliver within a specified time-frame. ‘We have a commitment with Airbus and we will stick to that commitment provided our requirements are met. And met in the correct time-frame.’”

Al-Baker sounded clearly frustrated in his comments to Reuters. http://www.gulfnews.com/business/Aviation/10041636.html

Key Quote: “‘We have not signed a purchase agreement because we cannot … purchase an airplane which is undefined,’ Baker said … ‘The definition will change, the performance will change, the fuel burn will change. So many things will change that the airplane that we signed for in last September is not there anymore,’ he said. ‘So we have to, of course, review all our options.’”

Meanwhile, in Europe, Airbus chief Gustav Humbert continued to say that his group will improve the A350. http://www.gulfnews.com/business/Aviation/10041537.html

Key Quote: “‘The message to our competitor (Boeing) is clear: the game is not over yet, it will just start in the summer,’ Humbert told reporters at the Berlin air show.”

However this all shakes out, BizWeek notes that even if Airbus comes out with a much-improved, mostly composite A350, Boeing will still have an important head start. http://www.businessweek.com/magazine/content/06_22/b3986071.htm?chan=innovation_innovation+%2B+design_top+stories

Key Quote: “While Airbus gets up to speed on composites, Boeing will take an early lead, with 6 or 7 of its 787 Dreamliners rolling out of the factory each month at a list price of $120 million a pop. That gives Boeing plenty of time and money to launch its next plane, most likely an all-composite makeover of the 737. Such a plane would take direct aim at Airbus’ best-seller, the A320, throwing the European company on the defensive once again.”

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