Udvar-Hazy: Wiring Problems Worse Than Feared

This is NOT the kind of news Singapore Airlines, Qantas, and Emirates -- all awaiting delivery of their first Airbus A380s -- want to hear right now. Two individuals -- each with separate interests -- hinted in the past week that Airbus may be forced to announce yet another delay in the beleagured superjumbo program.

BAE Systems president Mike Turner said this week he would "not be surprised" if Airbus were forced to once again delay deliveries of the mammoth plane... adding "all the ingredients are there" for further problems. Turner did not elaborate on what those problems might be.

Commenting on Turner's remarks, EADS spokesman Michael Hauger told Bloomberg "I don’t know where he would know that from, because the audit of the A380 is still under way, and as long as that’s ongoing, we have no result."

As Aero-News reported, last week BAE Systems agreed to sell its 20 percent interest in Airbus for far less than the British aerospace manufacturer originally wanted. Shakeups at parent company EADS -- directly related to the last delay in the A380 program, announced in June -- drove Airbus' value down.

With that in mind, it's tough to say if Turner's comments are an example of insider knowledge... or sour grapes. The second person to cast doubt on the A380 program, however, cannot be accused of wishing ill on Airbus... as he's one of the planemaker's largest customers.

Nevertheless, Steven Udvar-Hazy -- head of aircraft leasing company ILFC -- told an audience in Seattle last week a third A380 delay is likely.

According to Udvar-Hazy (right), the problems with wiring required for airline customization -- the primary cause of the June delay -- are worse than expected... and yet another delay may be announced soon. That's bad news for many A380 buyers... including launch customer Singapore Airlines, which had hoped to be flying its first A380 by the end of this year.

We still don't know for certain if Airbus will need to delay the A380 -- Airbus management is reportedly set to review the situation next week -- but in the past, Udvar-Hazy has shown a high level of insight into the situation at Airbus. His comments earlier this year on the original design of the A350 midsized airliner started a groundswell... that led Airbus to completely rethink its competitor for Boeing's 787.

FMI: www.airbus.com