The delay of Airbus' A380 has caused a series of crises. Its holding company, European Aeronautic Defense and Space Company (EADS), has been mired in trouble: its stock prices slumped, its senior manager was replaced, its strategic credibility was questioned, and its position as market leader was challenged.

People in the aircraft business believe that the newly appointed CEO needs to step up the pace to put Airbus' business back on track, especially the A380 aircraft project. If Airbus still hesitates in making a decision to improve the current situation, it will gradually lose its existing market position. Analysts have indicated that delivery delays of the A380 may cause Airbus customers to lost faith in its future projects, particularly the A350 project. What is happening now has proven this point.

So far, 16 airlines have ordered between them 159 A380 aircrafts. These airlines have complained about the delivery delays. In addition to ongoing negotiations about compensation, Singapore Airlines has turned to Airbus' competitor Boeing and ordered 20 Boeing 787-9 aircrafts. It plans to purchase another 20 aircraft following this order. Emirates Airlines indicated that it would also reconsider purchasing 45 A380 aircrafts. Australian Airlines is considering asking Airbus to refund some of their deposit. Malaysia Airlines said that it would reconsider its orders.

Airbus' low fuel consumption four-engine A340 aircrafts have also lost their market competitiveness. Last year, Boeing won an order for 155 Boeing 777s. Airbus' achievements were lamentable. It only sold 12 of its A340-600 passenger aircrafts and none of its A340-500 aircraft.

By People's Daily Online