The A380: Big plane. Big delay. Big problem

Sometimes it pays to be hang back. Malaysia Airlines must be feeling a bit like that this week as rival airlines who were first to order the Airbus A380 mega jumbo have had their expansion plans scrambled by a further delay in delivery of the aircraft from Toulouse.



While Singapore Airline must sit on its hands for another year to receive the first of 21 A380s on order – the US$300 million aircraft won’t be ready for commercial service until October next year – MAS has conceded that the delays will not impact on its operations.



MAS has ordered six A380s and will no doubt appreciate some breathing space while bedding down its efforts to restore the airline to full financial health.



Peter Harbison, executive chairman of the Centre for Asia Pacific Aviation, said "the biggest impact of the delays could be felt most keenly in the Middle East. Emirates’ and Dubai’s growth trajectory and competitive impact could be slowed – but not stalled - by the delays, which could be positive news for its competitors".



Emirates has 45 A380s on order and was on track to become the world’s largest long-haul carrier (by seats) by 2012.



Singapore Airlines and Qantas, whose first A380 delivery will be in August 2008, have both expressed concerns that the delays in delivery of the mega jumbos will stall the strategic advantages they hoped to gain over airlines such as Cathay Pacific, which has not so far ordered the A380.



In announcing the latest delays in the A380 delivery schedules, Airbus president and CEO Christian Streiff made some interesting observations on the pan-European company.



“Airbus is not yet an integrated company,” he said. “Airbus doesn't yet have a simple and clear organisation. There are shadow hierarchies - leftovers from the never finished integration. And the change we bring about must also include the management culture. Until recently, it has been more a "green culture" where truth was not brought to light.”



Boeing has not been crowing over the problems of Airbus. Its own production problems are recent enough to remain clear in the memory. And while some airlines may be muttering about cancelling A380 orders to look at alternatives, it’s unlikely the Boeing’s production line – busy with a full order book for the new Dreamliner – could cope with the extra workload.