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By Tim Hepher and Alexander Cornwell
HONG KONG/DUBAI, Oct 31 (Reuters) – Airbus faces new
headaches delivering A330s to airlines tied to China’s
cash-strapped HNA Group and is in separate talks with Emirates
over the timing of undelivered A380 superjumbos.
Industry sources pinpointed the unrelated problems as the
reasons for commercial “challenges” disclosed by Airbus on
Wednesday.
The planemaker said with quarterly earnings that it hoped to
resolve by year-end unidentified commercial issues surrounding
the current-generation A330ceo and the A380 superjumbo as it
tries to soften the decline of two key long-haul models.
Wide-body A330 sales are slowing as many airlines opt for
new-generation planes like the Airbus A350 or the Boeing 787.
Companies belonging to the troubled Chinese
aviation-to-finance conglomerate HNA delayed payments for months
earlier this year, leading Airbus to pause deliveries rather
than step in to finance the aircraft itself, Reuters reported in
July.
Questions over A330 deliveries to HNA have resurfaced due to
financing issues, the sources said. The parties “are finding a
solution,” one added.
Under pressure from Beijing, HNA Group is in the process of
selling some $20 billion of assets, according to Reuters
calculations and media reports, following a $50 billion
acquisition spree.
Airbus declined comment. HNA could not immediately be
reached.
On the A380, Airbus is in negotiations with Emirates, the
single largest customer, over the timing of superjumbos built
and scheduled for delivery this year, industry sources said.
Emirates and Airbus agreed two years ago to delay the
delivery of 12 A380s; six were to be delivered in 2018 instead
of 2017, and a further six delayed from 2018 to 2019. Emirates
declined to say whether any of those jets have been delivered.
“This is a matter between Emirates and Airbus,” an Emirates
spokeswoman said. Airbus also declined comment.
Some industry sources questioned Emirates’ ability to absorb
new A380s at this stage.
One source said Emirates did not need them for now and had
parked a number as part of efforts to manage capacity.
The airline is also managing a pilot shortage which has
forced it to cancel some flights this year.
The latest uncertainty comes on top of a standoff between
Emirates and engine makers over a contract needed to keep alive
the airline’s order this year for up to 36 more A380s, whose
production is threatened with closure if the deal crumbles.
It has invited General Electric-Pratt & Whitney venture
Engine Alliance and Britain’s Rolls-Royce to bid.
Airbus has meanwhile moved to shore up demand for the
A330neo, another slow-selling model derived from the A330ceo.
Kuwait Airways ordered 8 of the jets this month but sources
said the deal involved a switch of jets meant for Hawaiian
Airlines, which had cancelled them and defected to Boeing.
As part of the deal, Airbus is expected to allow Kuwait to
cancel some orders for newer and pricier A350s, they said.
(Additional reporting by Stella Qiu, Jamie Freed; Editing by
Luke Baker and Elaine Hardcastle)
(c) Copyright Thomson Reuters 2018. Click For Restrictions – https://agency.reuters.com/en/copyright.html
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