Air Transport

China Southern Airlines now expects to take delivery of its first Airbus A380s in 2009, after the Beijing Olympics.

The state-run Xinhua news agency says China Southern, which has five A380s on firm order, had hoped to have its first in service before the August 2008 Olympics in Beijing, when demand is expected to increase sharply. However Airbus’ production problems mean its first aircraft will now not be delivered until 2009.

Xinhua also quotes a state-run newspaper as saying Airbus may have to pay the airline $250 million in compensation for its late deliveries.

China Southern company secretary Su Liang declined comment on the compensation report and says from Guangzhou that the airline does not know when exactly its first aircraft will be delivered. Airbus China also will not say when the first aircraft will be delivered to China Southern.

The carrier was originally due to have started taking delivery of its five A380s in 2007 but deliveries to early customers are now running around two years behind schedule.

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