$57 billion on table for Airbus's A380s

LONDON - Cost overruns and political bickering have been set aside for Airbus's launch today of the A380 double-decker, the biggest airliner ever built.

Customers have committed almost US$40 billion ($57 billion) to buying the 555-seat plane, expecting it to lower operating costs and fatten profits, battered in a slowdown since 2001.

"It's the first seriously radical new plane for a generation," said Paul Moore, spokesman for British airline Virgin Atlantic, which has six A380s on order. However, not everything is coming up roses for the Toulouse-based planemaker.

Chief executive Noel Forgeard is leaving after waging an acrimonious public bid to become co-CEO of parent firm EADS, leaving questions about who will lead Airbus and sparking ill-will within that company.

The A380 is also causing headaches as it runs €1.45 billion ($2.7 billion) over budget and battles a weight problem that threatens to undo its promised cost-saving performance. While not an uncommon problem for new planes, the stakes are higher with the A380, which at a list price of US$260 million is an expensive gamble.

Airbus' suppliers are also feeling the pinch, with British engineering firm Cobham among those running over budget on work to develop A380 equipment.

Virgin Atlantic said delays in developing some equipment contributed to its decision to delay its A380 deliveries.

The plane will dwarf rival Boeing's 416-seat 747-400, for four decades the reigning heavyweight. It will accommodate more than 800 if airlines use all-economy seating.

Airbus needs to keep the A380 on schedule, not only to satisfy customers but also to allow its engineers to turn to building its planned A350 mid-sized model and spearheading Europe's planned military transport plane, the A400M.

Airbus must also meet its bullish forecasts regarding demand for the A380 and recoup the more than €12 billion that the plane will cost to create. The planemaker foresees demand for 1650 planes in the A380 category above 450 seats over the next 20 years.

- REUTERS