Risk for Airbus A350 program

DOHA --Abu Dhabi-owned Etihad Airways said Tuesday it has reduced firm orders for Airbus A350-1000 jetliners, but is retaining options to buy more of the aircraft. Etihad was confirming an earlier report it had cut its firm orders to 19 aircraft from 25.


"Etihad Airways has a great deal of confidence in the A350 XWB program and we are delighted we have been able to retain attractive delivery positions for the (A350-)1000 derivative," an Etihad spokesman said.


"While we will be reducing our firm orders, our 25 options and purchase rights for this fleet remain in place and will no doubt play a crucial role in the airline's growth," the spokesman added.


A spokesman for Airbus confirmed Etihad had canceled some planes. "Yes, linked to their fleet requirements which evolve over time and can change," the spokesman said in an emailed statement.


In June, Airbus, a unit of European Aeronautic Defence & Space Co. NV (EAD.FR), or EADS, said it would increase the size and power of the A350-1000, delaying the aircraft's launch to 2017 from 2015. Chief Executive Tom Enders has said there may be "short-term" issues regarding discussions with existing A350-1000 customers.


To help out some that are struggling, Airbus is providing them with teams of engineers and technicians to provide technical advice to minimize delays that might create bottlenecks in the program.


The first version of the A350 is slated to enter into service with customer airlines in 2014. Airbus already has been obliged to push back the entry into service date by up to six months to ensure that the project is mature before it gets to the industrial stage, unlike the A380 superjumbo program in which errors weren't fixed before they reached the final assembly stage. Final assembly of the A350 is slated to start before the end of this year.


"We learned our lessons from the A380, and from Boeing Co.," which also ran into costly delays with its 787 Dreamliner program, Bregier said.


Airbus's chief salesman, John Leahy, said Tuesday that airlines are clamoring for earlier delivery slots for a later, stretched derivative of the A350 called the A350-1000, but none are available before 2019 or 2020. Airbus has decided to delay that program to allow it to be equipped with more powerful Rolls-Royce engines. "There's no way we can accelerate the A350-1000 program because we need to get feedback from flight testing of the smaller A350-900 to fine-tune the design in terms of weight reduction, and to allow time for Rolls-Royce to develop the engine," he said. Airbus has said that it sees the A350-1000 as the plane in its catalog that will kill the Boeing 777.


Airbus disclosed earlier Tuesday that Etihad Airways has canceled firm orders for six A350-1000s.