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Airbus A340 in trouble as fuel prices soar
Emirates Airlines postpones orders to take delivery of 20 A340s indefinitely.
BY A CORRESPONDENT
April 3, 2006
Airbus is losing out to Beoing 777 as the multiple engine A340 is not considered fuel efficient. Analysts see aviation prices going in an upward trajectory in the near future.
Emirates Airlines on Sunday postponed indefinitely the order for taking delivery of 20 A340-600 aircraft, which were scheduled to start next year, media reports said.
The Dubai-based airline wants Airbus to develop a fuel-efficient version and convert is order into that as it grapples with the rising oil prices which is cutting into its margins.
Airlines across the world are facing this issue, analysts say. The fuel bill for airlines increased 50% in 2005 to $ 92 billion, as per figures released by International Air Transport
Association (IATA).
To strike Airbus at this juncture, rival Boeing introduced 777-200LR twin-jet, which it claims is the world's longest-range aircraft.
It can transport more than 300 passengers. Boeing claims it consumes 24 percent less fuel than the Airbus model.
As per norms, twin-engine planes should stick to a certain range within an emergency airport as any of the engine failures are more likely compared to single engine ones.
Boeing is now pushing for this restriction to be lifted as it sees twin engine aircraft as a reliable one now.
The Airbus A 340 was launched in 1991 to take on Boeing 747.
In 2005, Airbus got orders for only 15 of this model despite an aviation boom, as against 154 Boeing 777s.
Airbus is mulling a new version of A340 which can fix the fuel issue as price seems to be the major impediment in its war with Boeing.
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