Etihad scales back Airbus order

Etihad Airways has cancelled orders for another tranche of the new Airbus A350-1000 long-range jet as other Gulf carriers express concerns over production delays to the programme.

The Etihad livery is applied to an Airbus A330-300. Etihad cancelled orders for the plane maker's newer A350-1000 aircraft. Gilles Bouquillon for The National

Etihad Airways has cancelled orders for another tranche of the new Airbus A350-1000 long-range jet as other Gulf carriers express concerns over production delays.

The A350, which has yet to fly, has been touted by Airbus as its answer to the massively successful Boeing 777, but a decision last year to carry out a major redesign put deliveries back three years.

Etihad ordered 25 of the airliners in 2008, to be delivered in 2014. However, after Airbus confirmed roll-out would not be until 2017, the Abu Dhabi airline pulled the plug last January on six aircraft from the original order.

Yesterday, an Airbus monthly sales report showed Etihad had cancelled a further seven, worth US$2.3 billion (Dh8.44bn) at list prices.

"Etihad Airways has a great deal of confidence in the A350 programme and we retain attractive delivery positions for the 1000 derivative", said an Etihad spokesman last night.

"While we have reduced our firm orders, our 25 options and purchase rights for this fleet remain in place and will no doubt play a crucial role in the airline's growth.

"Although not intrinsically linked, the recent delay to the A350 programme provided an appropriate opportunity for Etihad to revisit its projected fleet mix in the latter part of the decade."

The airline still has orders in place for 12 A350-1000s, and analysts said yesterday that these orders were "on borrowed time".

Etihad has so far not criticised Airbus openly. After cancelling the six in January, an Etihad spokesman said it still had "a great deal of confidence" in the A350-1000 programme.

"While we will be reducing our firm orders, our 25 options and purchase rights for this fleet remain in place and will no doubt play a crucial role in the airline's growth," he added at the time.

The A350's other Gulf customers - Emirates Airline and Qatar Airways - have been more vocal in their complaints.

Qatar, the aircraft's launch customer, has already threatened to cancel its order for 20 of the 1000 variant in favour of the smaller 900 model, which is scheduled for deliveries from the first half of 2014.

"It never makes me happy when one of the programmes we are so dependent upon is being delayed. This will dent our expansion and fleet replacement programme," Akbar Al Baker, the Qatar Airways chief executive, told Aviation Business magazine. "The aircraft is not meeting performance targets and I have voiced my opinion on this matter several times."

Airbus has targeted the A350's three carbon fibre-constructed variants, the 800, 900 and 1000 at both the Boeing 777-300ER and the new 787 Dreamliner, also constructed from carbon fibre.

Airbus told customers the A350-1000 would be, "consistently more capable than the [Boeing] 777-300ER. It will cover the world with 25 per cent less fuel burn".

But the decision to beef up the 1000's engines and add 400km more range and an improved take-off weight has resulted in $99 million being added to the list price of each aircraft - and the delays.

"My understanding is that [Etihad's] remaining A350s will be dumped before the year is out. The last 12 are on borrowed time," said Saj Ahmad, an aviation analyst.

"Etihad needs confirmed delivery dates and Airbus just can't do that with this airplane - and with the carrier expanding and looking to launch more routes, they can't afford to wait for an airplane based on promises when they can have the 777-300ER, which has proven credentials and is the most sought-after wide-body airplane today."

Yesterday's announcement means overall orders for the A350-1000 have fallen to 62. The 1000 has not landed any orders since the jet's redesign last June.

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