PARIS, Feb 15 (Reuters) - Air France-KLM (AIRF.PA) could delay taking delivery of several aircraft as it seeks to rein in costs in the face of the global economic downturn, financial newspaper Les Echos reported on Sunday.

In an early copy of its Monday front page, Les Echos said the airline could put off the delivery of three Boeing (BA.N) 777-300 aircraft and one of three Boeing 777 cargo planes it has ordered, as well as one Aibus (EAD.PA) A380 superjumpo.

The newspaper gave no source for its information.

Air France-KLM swung to an expected third-quarter operating loss and abandoned some of its costly fuel price hedges, boosting its shares on Friday.

Europe's largest airline also announced 1.2 billion euros of capital spending cuts, half of them in the coming year, and said it would cut summer seat capacity by 2 percent, in a move adopted by many airlines to help shore up profitability.

Another airline is looking to push back deliveries.

http://www.reuters.com/article/marketsNews...20090215?rpc=44

http://www.forbes.com/2009/02/16/air-franc...artner=yahootix

Air France-KLM said it was delaying new orders by two to three years on Monday, following news of an aggressive cost-cutting program, as sinking demand forced the carrier to make a swift U-turn on fleet growth.

The Franco-Dutch airline, which in the past five years acquired a stake in KLM, Alitalia and other smaller industry players, would not say precisely how many orders would be delayed. Press reports claimed the delays would include five passenger and cargo planes from American plane-maker Boeing (nyse: BA - news - people ) and its European counterpart Airbus, a unit of European Aeronautic Defense and Space (other-otc: EADSF - news - people ).

A spokesman for Air France-KLM said that delivery of an A380 superjumbo plane was still expected for the end of the year. The carrier said it was not cancelling any plane orders.

Air France-KLM Group is considering deferring one or two of the Airbus SAS A380 superjumbo jets it has on order as a recession weakens demand for air travel, said Pierre Vellay, the airline's director of fleet development. "It's a very serious crisis," Vellay told reporters today in Everett, Washington, where he was picking up Boeing Co.'s first 777 freighter model.

Air France-KLM, Europe's biggest airline, is also deferring two of the five 777 freighters it has on order. The Paris-based company pushed back deliveries of two it had planned to get this year until sometime between 2010 and 2012, "according to the speed of the recovery" of the industry, Vellay said in an interview.


[...]

Air France-KLM said earlier this week it's postponing deliveries of six planes by two to three years, including an unspecified number of 777 cargo and passenger models and an unspecified model of Airbus aircraft.

Airbus Deferrals

Vellay said today Air France is only considering deferring the A380 among the Airbus planes it has on order and will make a final decision once it gets the new delivery schedule from Airbus for the 12 superjumbos it has agreed to buy. The Toulouse, France-based planemaker said last month it may deliver just 18 A380s this year, down from the earlier goal of 21, though Air France said it still hopes to get its first jet by year-end.

Air France has about 40 jets on order from both planemakers and doesn't plan to outright cancel any, because it needs to renew its fleet, Vellay said. The 777 freighter, which Air France helped develop, will make the carrier more competitive once cargo traffic picks up, he said.

"It's important to operate a more efficient tool, especially right after a crisis, because it's the best way to recover," Vellay said. "This will be a very sexy product for the investors, not just the operators."

NEW YORK, March 2 (Reuters) - Air France-KLM (AIRF.PA) is considering delaying deliveries of the last six A380 jetliners it ordered from Airbus, on top of recent deferrals of Boeing (BA.N) planes, but so far is not planning to cancel any of its recent plane purchases, according to its chief executive.

Europe's largest airline, along with its rivals, is looking to cut back on capital spending and preserve cash as the global economic downturn crushes demand for flights and access to financing evaporates.

"We moved 777 cargo and we moved 777 passenger," said Pierre-Henri Gourgeon at the Reuters Travel and Leisure Summit in New York, referring to Boeing orders. "We (may) move also late A380s, after the first six... that has an effect on downpayment."

France's flag carrier has 12 of EADS' (EAD.PA) unit Airbus's massive A380 jets on order. It is planning on taking deliveries as scheduled over the next two years, but may shift plans for later deliveries.

"It's mainly from the six or seventh aircraft that we may move or adjust our schedule, which will create some saving on the downpayment this year and the year after," said Gourgeon, who took over as CEO in January.

"It's mainly from the six or seventh aircraft that we may move or adjust our schedule, which will create some saving on the down payment this year and the year after," said Gourgeon, who took over as CEO in January.

Link to Reuters article confirming the deferrals:
http://www.reuters.com/article/rbssIndustr...325453120090303



I'm going to go out on a limb and predict that AF won't be ordering more whalejets at Paris this summer.

Oddly enough, a British poster on airliners.net implies in a thread on A380 production that he attended a meeting in TLS where it was announced that A380 sub-assembly production would be significantly increased starting in September 2009. I have asked if this means Airbus is planning to boost A380 production from 2010 onwards by a significant amount.

Oddly enough, a British poster on airliners.net implies in a thread on A380 production that he attended a meeting in TLS where it was announced that A380 sub-assembly production would be significantly increased starting in September 2009. I have asked if this means Airbus is planning to boost A380 production from 2010 onwards by a significant amount.