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October 19, 2011

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China Southern May Scrap Dreamliner Orders

CHINA Southern Airlines Co, Asia's largest carrier by passenger numbers, said it may join China Eastern Airlines Corp in scrapping orders for Boeing 787 planes after delivery of its first plane has been delayed until July.

The arrival of the first of China Southern's 10 on-order Dreamliners has been delayed from around year-end because of certification issues, Chief Financial Officer Xu Jiebo, said yesterday by phone from Guangzhou. He didn't elaborate on what the hold-up was.

"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," he said.

The Guangzhou-based airline will seek compensation from Boeing for the late delivery, Xu said.



 

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