Qantas won't cancel its airbus order

Qantas says it will not cancel its order for Airbus' new A380 superjumbo, despite a two-year delay in receiving its first planes from the order. "We are working with Airbus to resolve the issue. We are confident that they are now in a position to resolve the issues that they have," chief financial officer Peter Gregg said.

The delay was announced earlier this month, with Qantas now expecting to receive its first plane from the order in August 2008. Qantas expects to have four of the aircraft by end-2008 and seven by the middle of 2009.

Gregg said Qantas did not foresee any capacity restraints and would make an announcement over the next week on contingency plans to cope with the delay.

- REUTERS