Airbus delivers first A380

Airbus handed the first A380 superjumbo to Singapore Airlines yesterday in a slick ceremony designed to lift its image after two years of setbacks, but was forced to deny rumours of another bout of delays.

Delivery of the world's largest passenger jet to its first customer came as a huge relief to the European group, which has been working under siege for months after wiring glitches spiralled into financial crisis and caused a political scandal.

France's Journal du Dimanche newspaper, owned by one of the company's main shareholders, Arnaud Lagardere, reported on Sunday that Airbus remained worried about deliveries and had launched new measures last month to avert further delays.

"There are no delays; that is a misunderstanding," Airbus sales chief John Leahy told reporters.

Asked if Airbus was reaffirming its 2008 delivery target of 13 aircraft, Mr Leahy said: "That is our plan and we are on target. We have said it is a challenge, of course, but we are on track." A foul-up over the installation of the 500 kilometres of wiring on the double-decker A380 planes in 2006 toppled Airbus management, pushed the plane maker into loss and put back Europe's biggest industrial project by two years, leading to 10,000 job cuts.

In a new setback, a senior executive said Airbus's A400M military air lifter had also been delayed by another two months.

"The A380 is not a luxury, it is a necessity. That's why increasing A380 production to meet demand remains our biggest challenge for the next two years," Airbus chief executive officer Tom Enders told a crowd of airline industry guests and journalists. "Everything we have accomplished so far gives us the confidence, the courage and the means to face the big ramp-up in 2008 and 2009," he said.

He refused to rule out further delays, telling reporters: "We have confidence, but in life, nothing is guaranteed".

The first aircraft was delivered to Singapore Airlines 18 months later than planned at a heavily stage-managed ceremony at Airbus's headquarters in Toulouse, France.