The Asian debut of the A380, Airbus' colossal double-decker passenger jet, drew
crowds of aviation enthusiasts in Singapore over the weekend, and is now
repeating the performance in Australia, with Malaysia next on the list.
But China, destined to be the world's largest civil aviation market, is
conspicuous by its absence from the list of planned destinations for the
aircraft's sensational tour of the region. This is perhaps fitting, since sales
of the A380 to mainland airlines so far have been disappointing:
Guangzhou-based China Southern Airlines, which has said it will buy five, has
been the only taker so
far, and no
Hong Kong or
Taiwan-based carrier has appeared in
Toulouse's order book either.
It's not that the company hasn't tried: in July, Airbus head Gustav Humbert
said China remained a major target market for the "superjumbo", along with
Japan, the US and India. In June, the company reported that it was talking with
three Chinese airlines - Air China, China Eastern and
Hainan Airlines - about taking orders to
be delivered in time for the 2008 Beijing Olympics. The Olympics, and the
Shanghai World Expo to follow in 2010,
have been expected to create additional demand for airliners by mainland
carriers.
In April, around the same time that the China Southern contract was signed,
Airbus China president Laurence Barron told the Beijing Youth Daily that Air
China was considering leasing two of the big jets from the International Lease
Finance Corporation. But no firm orders have emerged.
Nonetheless, according to the People's Daily, the company has said that it was
cooperating with Civil Aviation Administration of China (CAAC) authorities to
ensure the plane will be compatible with the civil aviation infrastructure in
China.
This cannot be taken for granted, since the craft's huge size requires special
attention to jetways, taxiways, and turning clearance to ensure it can be
safely accommodated, not to mention additional capacity for baggage handling
and passenger lounges. (With some configurations, the A380 could hold as many
as 800 passengers, although passenger load for a more typical three-class
configuration would be around 550.)
Out of the major mainland airports, Hong Kong International Airport, Guangzhou
New Baiyun International Airport and Shanghai International Airport have been
certified as completely compatible with the A380, and the
Beijing Capital International Airport will
be after its planned pre-2008 Olympic Games expansion is completed. Airbus said
on November 11 that it would like to conduct a "compatibility test" of the
plane in China, but no definite plans have been announced.
In Taiwan, a November 12 radio report on Taiwan radio detailed the plans of
civil aviation authorities to upgrade Chiang Kai-shek International Airport in
Taipei to accommodate the A380. Although no Taiwan-based carrier has yet
ordered the plane, it is expected that foreign airlines using it will be
landing at the airport. "We have designated the D6 parking area for A380 jets.
We need to reinforce the runways and import larger baggage conveyors," Wei
Sheng-chih, director of the Chiang Kai-shek International Airport, told the
Broadcasting Corporation of China. "The upgrading will cost NT$100 million
[US$1 million] and will be completed next year," Wei said.
China a strong market for Airbus
Slow sales for the superjumbo have been an exception to a generally strong
performance for Airbus in China. By the end of the year, the company is
expected to deliver a total of 65 aircraft to China, up 54% compared with 2004,
and accounting for one sixth of its global deliveries. In 2006, deliveries are
expected to increase to nearly 80 aircraft, according to Barron.
Barron also said that most of the aircraft sold to China thus far have been
single-aisle A320 family aircraft. Airbus expects to deliver another 50
double-aisle aircraft to China in the next three years and two A380s to China
Southern Airlines, with options for another three later. The China division
president noted that, partly due to entering the China market 15 years later
than Boeing, the company's market share in China is only 29%. However, judging
from the growth trends, Airbus deliveries to China have already surpassed
Boeing. China introduced its first Airbus in 1985, and over 300 aircraft from
the company are now in service.
Singapore, Australia, Malaysia on tour schedule
The A380 began its Asian tour by arriving at Singapore's Changi Airport
November 11 to kick off its first test flight outside of Europe. Singapore
Airlines (SIA), long expected to be the A380's first customer, ordered 10
planes in September 2000, with an option for another 15. The $8.6 billion deal
also included the cost of spare parts and installed engines. Bey Soo Khiang, a
senior executive vice president at SIA, has said the company planned to start
operating the jet by Christmas 2006.
After leaving Singapore on Friday night, the plane headed to Australia for a
tour of the country, highlighted by its scheduled participation in Qantas
Airlines' 85th birthday celebration, to be held in Brisbane. It was repainted
for the purpose with a Qantas logo. After a stopover in Sydney preceded by
three circles of Sydney Harbor, the A380's first touchdown in Melbourne was
watched by thousands of aviation enthusiasts, some from the observation deck of
the Melbourne airport, which had been opened for the first time since September
11.
Qantas has pre-purchased 12 A380s, which it plans to use on the Sydney-Los
Angeles route and the so-called "kangaroo route" to London via Singapore and
Hong Kong. On November 15, the aircraft will fly on to Brisbane for the
anniversary party, which Hollywood actor and Qantas ambassador John Travolta
will attend. (Travolta, a highly experienced passenger jet pilot with a
multi-engine rating, is famous for owning a Boeing 707 formerly in service with
Qantas, and painted with the airline's logo.)
Late-delivery claims shadow tour
A discordant note in the plane's triumphant visit to Asia and Australia was
sounded by the fact that Airbus may have to pay millions of dollars in
compensation to airline customers, including SIA and Qantas, due to delays in
the delivery of the new plane.
SIA head Chew Choon Seng told a German magazine (Focus) that he wished he had
known sooner about delays in the delivery of the first batch of A380 planes,
and said the airline would press Airbus for compensation. "Airbus took quite a
long time to admit that the A380 program was behind schedule," said Chew,
adding that this delay had caused serious disruption to his airline's planning.
However, he noted that the delays would affect other customers equally, saying:
"After us [SIA], about half a year later, Emirates and Qantas will get them.
The interval remains the same". SIA will still become the first airline to fly
the new plane.
Pilots, cabin crew and technicians had already completed their training for the
A380, according to Chew; SIA will respond to the delay mainly by keeping aging
Boeing 747s in service longer. Under the contract, SIA was entitled to
compensation, he added: "It's like a taxi ride. The longer the ride, the dearer
it is. It will cost Airbus more for every month of delay."
As for Qantas, it has pre-purchased 12 of the A380 jets, which will be
delivered in April 2007 - about six months after the original delivery date.
Airbus chief operating officer John Leahy said talks with airlines about
compensation over the delays were confidential and would not specify how much
the airlines were seeking. "The airplane costs about US$285 million [A$391
million] a copy, so I think it is safe to say we are talking a couple of
million dollars," Leahy told the Nine Network. "But let's not get into detail;
that's confidential between us and the customer."
In spite of the late delivery, Leahy was confident of enough sales to earn back
the aircraft's development costs. According to him, the break-even point for
the company is about 250 planes. "We are essentially there now," he said. "We
have 159 firm orders and I have about 100 options that are blocking delivery
slots, most of them over the next five years."
Airbus spokeswoman Claudia Mueller has responded to the airline complaints by
saying, "Airbus prefers to deliver a little later with a very good product than
to rush through with a delivery."
