China Southern Airlines CFO Xu Jiebo stated the delivery of its first of 10 B787s on order has been delayed by around seven months from the end of 2011 to Jul-2012 due to certification issues. The carrier added that it may join China Eastern Airlines in cancelling its B787 order, with Mr Xu reported by wire services as saying: “We won’t rule out the possibility of canceling or adjusting the 787 orders, if there is a huge gap between the plane’s functionality or delivery date and our requirements". The carrier will also seek compensation from Boeing for the late delivery, he said.
China Southern B787 delivery delayed by seven months; order cancellation not ruled out
You may also be interested in the following articles...
US-China open skies: a window in 2019 – alignment of airline partnerships & airport infrastructure
The year 2019 presents a possible opening for China and the United States to sign an open skies agreement. This would principally lift restrictions on flights between the countries – important, since both nations have saturated primary traffic rights and there have been unsuccessful negotiations to expand the allotment.
Most importantly, open skies is a prerequisite for US approval of US-China airlines' joint ventures with antitrust immunity. These partnerships permit airlines to coordinate networks and pricing jointly – which, they say, increases consumer choice, but which other groups worry reduces competition, after experience in the trans-Atlantic market.
Perhaps paradoxically, the lure of a JV will mean that the airlines lobby their governments for open skies that might eventually reduce competition. US airlines will want greater slot availability at Shanghai and Beijing, which could occur in 2019.
Finally, airlines will need to have confidence in a shared future with their partner. China Eastern is close to Delta, while China Southern has a young partnership with American Airlines. Air China, however, does not feel close to United Airlines, which has the highest presence of its own metal in the market. Air China questions whether United actually wants open skies. There is unlikely to be any government deal without the support of Air China, the flag carrier, and a major airline that enjoys a close relationship with the regulator.
Global Fleet Outlook: Deliveries peak, as order highs decline.
Airlines are set to add more new aircraft than ever before in 2017. After years of record ordering and building backlogs, aircraft manufacturers are making good on their promises to ramp up production. The industry is enjoying record levels of growth and profitability; with solid passenger market fundamentals, and both airlines and leasing companies having access to ready liquidity, cheap debt and plentiful equity capital, making financing fleet orders easier than at any time before the global financial crisis.