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Lufthansa Faces €500 Million Annual Loss Due to Aircraft Delivery Delays, CEO Says

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Lufthansa Group is grappling with an annual loss of approximately EUR500 million euros (USD542 million) due to ongoing delays in aircraft deliveries, CEO Carsten Spohr disclosed during a press event in Stuttgart. (www.airguide.info) More...

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CHRISMORGAN
CHRIS MORGAN 6
The ongoing losses at Lufthansa, as with many of the world's major airlines, resulting from the delivery delays from both Airbus & Boeing give a clear picture of the problems that the carriers are having to grapple with. These are also compounded by the ongoing difficulties with Pratt & Whitney's PW1100G engines which have also resulted in aircraft being grounded. No doubt the airlines concerned will be looking for an appropriate level of compensation from the various suppliers.

Interestingly these delays have led to Lufthansa reintroducing some of it's Airbus A380's back into service that were withdrawn as a result of the covid crisis. In fact some 145 previously grounded A380's are being reintoduced across the worlds airlines. Perhaps even more noteworthy is the statement from Christian Scherer (head of Airbus's civil aviation division) that Airbus are giving serious consideration to restarting the A380 production line. Presumably this is driven by the ultra high capacity of the 380 and little chance of any alternative in the forseeable future.
radu28
radu28 1
Hm, I doubt restarting the production line is possible. It's not like a fashion factory, where the tailors just cut the materials differently. That assembly hall is now producing another airplane, the rigs have been replaced, people have moved over or out... I'd love to see the A380 back in production and flying with more airlines, but it ain't gonna happen.
Nibbles
Steve Pearce 1
I agree it is perhaps unlikely, but the A380 does fill a nice niche for getting max seats out of one set of airport slots. I would be surprised, given that, that the tooling needed to produce one have been scrapped - particularly the bits that are costly to re-make. Maybe I'm wrong.

Ultimately, if they believe there are enough orders to offset the costs of turning the line back on, thats what they will do. Whether those orders are firm orders or not is anyone's guess.

I presume, if it did come back, that it'd be the 800 variant, rather than the mooted stretched versions of an NEO option.

I put this in the 'things id like to but am probably unlikely to see'
mgsegal
Mark Segal 1
".......but is ain't gonna happen" - do you know more than the management of the company about whether they can do this or not?
CHRISMORGAN
CHRIS MORGAN 1
I also agree that it does seem unlikely BUT there is no doubt that previously grounded A380's are being reintroduced into service, and in quite substantial numbers, and that the statement from Airbus has to be given some consideration.
As Steve Pearce alluded to, there is a capacity issue on a substantial number of prime routes and it is perhaps relevant that the largest aircraft, apart from the A380, are the Airbus A350-1000 (with 410 seats) and the Boeing 777 with slightly more at 426 seats. Meanwhile the Airbus A380 has a maximum capacity of 850 so put more simply one A380 is worth two of it's nearest rivals.
Consequently it may well be that the Airlines, and therefore Airbus, are beginning to re-examine the the longevity and practicality of the A380. Much.I guess, will depend on how they forecast air travel will develop over the next twenty or thirty years and if an ultra high capacity aircraft will become a money spinner.
dwiggins01
Scott Wiggins 2
Shockwaves from Klaus Schwab’s Great reset, I mean the plandemic still being felt.
airbusralph
Ralph J, 2
Bring back an aircraft that never made money?
Spend more money to not make money!
Shall I go on?
Don’t get me wrong I am an Airbus fan, endorsed on the 380, but, it was a dead birth and a very costly vanity project!
So, yes I doubt very much they bring back a money loosing product!

Airbus Ralph

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