Airbus has pushed back the delivery of its first A320neo aircraft to the start of 2016, it said on Wednesday, missing a goal to hand over the revamped version of the jet to its initial customer by the end of 2015.
The A320neo, seen as a profit driver for Airbus and its suppliers in coming years, won safety approval in late November, and Airbus said it was working with its development partners to bring the plane into operation.
“All three partners continue working with all efforts and full focus towards bringing the fuel-efficient A320neo into service within the next weeks,” Airbus said in a statement, adding that the problem lay with documentation for the delivery, but without giving any further details.
German carrier Lufthansa became the first airline due to take delivery of the A320neo passenger jet earlier this month, after Qatar Airways voiced uncertainty over the performance of its Pratt & Whitney engines.
Lufthansa said it had agreed with Airbus to delay the delivery to the start of 2016 due to “technical complexities”.
“Discussions are continuing such that when we deliver the plane, it is truly operational in the Lufthansa fleet,” an Airbus spokesman said, adding Airbus hoped to deliver the plane in the first two weeks of January.
Engine maker Pratt & Whitney, a unit of United Technologies, said it was working closely with Airbus and Lufthansa to resolve “documentation items” with its Geared Turbofan engine, which is powering a new generation of jetliners, including Bombardier’s CSeries as well as the A320neo.
Boeing’s rival 737 MAX uses an engine produced by CFM International, a joint venture of General Electric Co and Safran.
Earlier this month, UTC Chief Executive Gregory Hayes said that uneven cooling of the engine after flight required a special restart procedure under some circumstances.
Hayes said software and hardware fixes were in the works and would likely be implemented by February.
On Wednesday, Pratt & Whitney spokeswoman Sara Banda said the company had plans to incorporate “software refinements and minor hardware modifications” in production engines starting in the second quarter of 2016.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
