Malaysia Airlines to Cancel A380 Order

Published: 20/03/07

Executives at European aircraft manufacturer Airbus were left reeling by reports from Malaysia that say that Malaysia Airlines is on the brink of cancelling their 6 plane order for A380 super jumbos after lengthy delays put delivery back by more than two years.

Despite assurances from Airbus that it would receive substantial discounts on a batch of a350 long haul aircraft, as well as cost reductions on the order of A380 planes, Malaysia Airlines is thought to have decided that enough is enough, and to end their dispute with Airbus by cancelling their order, which is worth more than a billion pounds.

According to insiders, the new delivery dates simply do not fit in with the airlines plans, and the loss of income that the airline faces with not being able to deploy the aircraft on key routes such as its flights to Kuala Lumpur, on time mean that it makes more sense to opt for another aeroplane such as the Boeing 747.

An Airbus spokesman responded to the reports by suggesting that all was not yet lost, and that a deal could still be reached to save the order.

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