After major turbulence, Airbus delivers A380

AIRBUS finally delivered its first A380 superjumbo jet yesterday - a critical step for the European plane maker in its efforts to rebound from a string of troubles.

Singapore Airlines took delivery of the double-decker jet, the world's largest passenger plane, almost two years late.

"Until now, the A380 has been Airbus' baby. Today we are here to celebrate this beautiful mature aircraft coming of age," said Airbus President Thomas Enders at a handover ceremony in Toulouse, France, that included a sound and light show.

Acknowledging the plane maker's difficulties, he told Airbus employees: "I realize how unsettling these last times, particularly the last 18 months, have been."

He thanked customers for sticking with the aircraft and said that increasing production to meet demand for the A380 "remains our greatest challenge for the next few years."

Singapore Airlines Chief Executive Officer Chew Choon Seng said the A380 "is well worth the wait."

Airbus has gone though five CEOs as multiple delays in the A380 program resulted in massive write-offs and a restructuring plan that foresees 10,000 job cuts over four years - not to mention billions of euros in lost profit.

Such delays have hurt more than just profits. Airbus' reputation has suffered, and US rival Boeing Co grabbed the top sales spot in 2006. But Boeing itself announced a six-month delay this week in its hot-selling 787 Dreamliner, leaving the double-decker A380 - at least temporarily - to claim the limelight.

Morale at Airbus has also been hurt by accusations that senior managers profited from knowledge about the A380's problems to cash in on share options. A preliminary report by the French Financial Markets Authority pointed to "massive insider trading" at European Aeronautic Defence & Space Co, Airbus' parent company.

Attended by around 500 guests, the handover ceremony was much more low key than the triumphal 2005 ceremony when the A380 was unveiled. Then, the 10,000-strong audience included French, German and British leaders who admired the plane's exterior but were not allowed inside, where problems lurked.

Government officials, some of whom have come under the spotlight in the insider trading probe, were absent from yesterday's event.

Singapore fitted its jet with 471 seats configured in three classes: 12 luxury suites on the main deck, 60 business class seats on the upper deck and 399 economy class seats on both decks. The plane is to replace one of three Boeing 747-400 jets already serving the Sydney-Singapore route.

Speaking earlier to Germany's ARD television, Enders dismissed suggestions that Airbus was pursuing the wrong strategy by producing the superjumbo in a market that likely will be interested in smaller planes and point-to-point routes in the future.

"It isn't 'either-or,' it is both," Enders said. "We also have aircraft for the long, thin routes - our 330 and 340, and in the future the 350. So we are not putting everything on the 380, but we are convinced that, above all in certain regions, the growth in air traffic can only be mastered with aircraft like the 380."

The A380's inaugural commercial flight has been set for October 25 from Singapore to Sydney.