Malaysia Airlines seeks A380 compensation

Published: 24/04/07

Negotiations between Malaysia Airlines and Airbus to secure a compensation package for the delays in delivery to the A380 super jumbo are thought to be close to completion, with a number of different options on the table.

Malaysia Airlines was thought to have been close to cancelling their order for the giant planes altogether, but have now adopted a much more circumspect approach, although they are still keen to see a big compensation package from the aircraft manufacturer to offset the vast costs that have been imposed thanks to a two year delay.

It is thought that Malaysia Airlines could either opt to receive a substantial discount on each plane in the order, or a preferential deal on future orders. Compensation packages already paid to other airlines are thought to have been worth tens of millions of pounds.

Malaysia Airlines operates one of the largest fleets of aircraft in South East Asia, with more than 100 planes offering flights to Kuala Lumpur from London Heathrow, and onwards to other destinations. They had originally ordered 6 A380 planes, with the first delivery set for 2008. It will now enter service 2 years late in 2010.

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