MAX KINGSLEY JONES / LONDON

Airbus is fighting to keep Virgin Atlantic as its launch customer for the A340-600 as the airline holds talks with the manufacturer to delay deliveries in the wake of the US terrorist attacks.

The UK carrier is to be the first airline to introduce the new Rolls-Royce Trent powered widebody, with deliveries of 10 aircraft on firm order due to begin in "the mid-summer" of next year. Virgin's contract also includes six options.

Virgin is believed to have an initial batch of six A340-600s due for delivery by the end of next year, with the four remaining aircraft following (two each) in mid-2003 and mid-2004. It was intended that the 380-seaters would replace Virgin's 747 Classics, although most of these are being withdrawn immediately due to capacity cuts. They would also be used for expansion across the entire network.

Industry sources say Virgin has told Airbus that it wants to delay the entire order, but in talks so far the manufacturer has refused to allow the initial batch to slip. Virgin confirms it is in discussions with Airbus "about how the events of 11 September will affect plans, if at all, going forward", but declines to be specific on the A340-600. It says that at present "nothing has changed", and that "Airbus is being very helpful" in talks.

Airbus also confirms it is in talks but says that "for the time being, there is no change for the A340-600 or A340-500 schedule". It declines to comment on any potential delays or deferrals.

Virgin is the first of three carriers due to take delivery of A340-600s next year, the others being Swissair (through leasing company Flightlease) and Cathay Pacific (through International Lease Finance). Emirates and Air Canada are due to take the first examples of the smaller, longer range A340-500 variant late next year.

Troubled Swissair says that its new owners will decide the fate of nine A340-600s it has on order through Flightlease. Five are slated for an August 2002 delivery, and a decision is expected by the end of October.

Cathay is carrying out a "top-to-bottom" review of operations that may include job cuts and other cost-cutting measures, which could involve "the deferral or cancellation of capital projects and purchases", it says. Its first two of three A340-600s are due to arrive on lease from ILFC towards the end of next year.

Source: Flight International