Airbus Delays Delivery Of First A320neo Until 2016

(RTTNews) - Airbus Group (EADSF.PK, EADSY.PK) said that it wouldn't meet a pledge to deliver the first of its new A320neo aircraft by the end of this year.

Airbus had long promised to hand over the first of the upgraded single-aisle planes before the end of the year, but issues with the aircraft has pushed the deadline back to the new year.

Deutsche Lufthansa AG (DLAKF, DLAKY) was poised to receive the first A320neo (new engine option), but on Wednesday the German airline said the delay until early 2016 was agreed late Tuesday owing to greater technical complexity in the acceptance process for the plane.

Airbus said it decided to delay the handover in agreement with Lufthansa and engine maker Pratt & Whitney, a unit of United Technologies Corp.

Airbus and Pratt & Whitney have to address issues with documentation for the aircraft, the Toulouse-based plane maker said, to ensure a "service-ready A320neo from Day 1."

The A320neo will now be delivered "within the next weeks," Airbus said.