Airbus to Pay Compensation to Mas for Plane Delivery Delay

Airbus Industrie will have to pay compensation for the delay in delivering the aircraft and hopes the issue will be settled before year-end.
"There will be compensation," managing director Idris Jala said when asked on the discussions between the airline and Airbus. "(There is) no change, we are still talking to them, nothing new," he said.
Asked on the progress of the national carrier's Business Turnaround Plan, Idris said: "Probably before year-end we will complete the plan and also settle the compensation issue with Airbus.
"All of them will be settled before year-end, a lot of things are going on, but we are making a lot of progress, I am happy," he told Bernama at the national carrier MAS charity gala dinner last Saturday.
Idris said MAS would focus on growing the company.
"There is a lot (that) we have to do now. As you know we have ordered some aircraft and we will turn around and make MAS a profitable business," he said.
He said the charity event was held "to celebrate a bit of the airline's success." Penerbangan Malaysia Bhd (PMB), the parent of MAS, ordered six A380 planes for RM1.6 billion (US$467.9 million) in 2003 to lease to the airline.
Under the sale and puchase agreement signed between PMB and Airbus, the first three planes were due to be delivered later this year, and the rest a year later.
In June last year, MAS said it was reviewing the terms of the purchase agreement after Airbus advised that technical problems meant a sharp cutback in planned deliveries.
MAS had planned to use the planes on its long-haul European routes, including London, Paris and Amsterdam.