FRANCE: Airbus flys three European ministers as well as Malaysia's transport minister over the Pyrenees on a A380 demonstration flight

Airbus flew three European ministers as well as Malaysia's transport minister over the Pyrenees on a A380 demonstration flight. Malaysia on Thursday (January 18) lifted the threat of cancelling an order for A380 superjumbos by national carrier Malaysia Airline System, in a boost for manufacturer Airbus as it reels from defeat by Boeing. Malaysia's transport minister Chan Kong Choy was also on board and said shorly before flying in the plane with European politicians that the order, worth $1.8 billion at list prices, would be upheld despite hints that the struggling airline would cancel it due to delivery delays. Demand from Asian low-cost carriers for single-aisle jets like the A320 and Boeing's 737 has been the driving force behind two very strong years in global aircraft demand. But Airbus surrendered a five-year lead over Boeing in market share last year, as carriers shunned Airbus's wide-bodied models while it wavered over the design of its A350 model and endured repeated delays and profit shocks on the mammoth A380. Louis Gallois, President of Airbus but also co-chief executive of European aerospace group EADS, invited European transport ministers that are shareholders in the plane to fly on the double-decker A380 for the first time on Thursday (January 18). Airbus has been bogged down by production problems and subsequent delivery delays of the A380, leading EADS to issue its third profit warning in less than a year. Airbus now expects to post a 2006 loss despite record aircraft deliveries. The A380 plane is two years behind schedule and airlines are demanding late delivery fees. The plane took off with French Transport Minister Dominique Perben and his counterparts from Britain, Margaret Hodge, and Spanish Minister Joan Clos plus European officials. Germany's representative was prevented from reaching Toulouse by high winds at Munich. The mammoth aircraft seats 555 people in its standard three-class layout but is designed to cram in more than 800 people for all-economy use by putting less space between seats. During the flight the European ministers discussed how EADS which owns Airbus intends to cut costs. All four countries fear that cost cutting could have a major impact on jobs in each country. The President of Airbus told Reuters he would unveil his restructuring plan known as "Power 8" by the end of February. "I said, many times, we will ask for a balanced effort between the different home countries of Airbus because we know that it's not possible to ask for the people to make sacrifice for another country. We have to be very careful with that", said Louis Gallois Airbus president and also co-chief executive of EADS. After landing, Hodge said the A380 was a very smooth, quiet and comfortable plane even though it was not yet equipped to carry passengers. She also said that she had full confidence in the A380.

ITN Source | January 19, 2007

Tags:. .seats. .jets. .confidence. .airlines. .manufacturer