Airbus to deliver first A380 at last

By Tim Hepher

PARIS (Reuters) - Airbus will pull out all the stops to celebrate the first delivery of its A380 superjumbo to Singapore Airlines on Monday in a bid to restore European pride in a project dogged by delays, in-fighting and share scandals.

The European planemaker is flying in guests for an upbeat one-and-a-half-hour handover ceremony. It caps 7 years of effort worth 11 billion euros ($15.5 billion) to create the world's largest jetliner and challenge the unbroken 40-year reign of the Boeing 747.

A foul-up last year over the installation of the 500 km of wiring on each plane toppled Airbus management, pushed the planemaker into loss and delayed Europe's biggest industrial project by two years, leading to 10,000 job cuts.

"I didn't think some of these leading airlines would stay with us through two years of delays on the A380, with five different CEO's and a battle between France and Germany over the governance of the company," said Airbus sales chief John Leahy.

"They have, and I think that's a testimony to the 55,000 people who work here," he told Reuters Television.

The first aircraft is being delivered to Singapore Airlines (SIAL.SI) 18 months later than planned. It will enter service between Singapore and Sydney with a flight raising money for charity on October 25. Full service will begin on October 28.

All eyes in the cut-throat airline industry will be on the frills and cabin layout to be unveiled by an airline which sets standards for on-board comforts. It has announced a 471-seat configuration, leaving more space than the standard 555 seats.

With two passenger decks and room for a bar and shops, the A380 claims 50 percent more floor space than the 747 and its designers boast it will introduce a new era of airborne luxury.

Buyers such as British entrepreneur Richard Branson's Virgin Atlantic promise double beds and casinos at 30,000 feet.

The delivery is a big milestone for Airbus after it battled successfully to stave off cancellations of the mammoth passenger plane, though buyers have deserted its all-cargo sister model.

Recent deals with British Airways (BAY.L) and Grupo Marsans have lifted the sales to 189 planes amongst 16 airlines.

MORE DELAYS?

But the Toulouse-based manufacturer faces its possibly toughest industrial test during 2008 and 2009. Chief Executive Tom Enders knows Airbus can ill afford further slippage in the timetable which calls for 13 deliveries in 2008 and 25 in 2009.

Le Journal du Dimanche newspaper, owned by one of parent EADS's core shareholders, Arnaud Lagardere, reported on Sunday that Airbus remained worried about deliveries and had launched a new set of measures last month to weed out any further delays.

The first two dozen aircraft are being wired by hand while a new system is prepared to bring output to 45 a year from 2010.