Singapore Airlines to be compensated for A380 delivery delay

Singapore Airlines (SIA) will be compensated by European aircraft maker Airbus for the 10-month delivery delay of its first A380 aircraft.

The first double-decker aircraft, which has been postponed once and again to the end of this year, will now be delivered in October 2007, followed by deliveries in 2008 and beyond, according to a statement released by SIA on Wednesday.

SIA became A380's first customer when it ordered 10 such planes, worth 8.6 billion U.S. dollars, in September 2000.

"The delays are disappointing, all the more so because the flight test and certification program is proceeding well, and the delays are down to production issues," the statement said.

The amount of the compensation was not disclosed. SIA said the terms of the deal are confidential.

On July, SIA ordered another 7.5-billion-U.S. dollar deal of 20 A350 planes and nine A380. The A350s are expected to be delivered between 2012 and 2014 while the A380s are due to enter service from late 2008 to 2010.

Source: Xinhua