Costly Airbus Flop

Hotel News - 15/11/2006

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Unless the Airbus A380 can attract a new wave of investors the taxpayer may very well have to pay out up to £700m to cover the cost of the launch investment. The Government has invested £530m in the Airbus and the cost of the Trent 600 and 900 engines will cost them a further £250m. The Government would reap a percentage of the royalty when an Airbus is sold but the tax payer will pay up if the new jet becomes a flop.

Airbus has secured just 159 orders but as delays cause problems for customers, there are worries that some, including Singapore Airlines, will pull out. Carriers have become less happy with the gas guzzling Airbus and are looking to the smaller craft such as the Boeing 787.

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