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Hongkong Airlines considering cancelling A380 order
Update: 15:37, Thursday, Aug 16,2012 (GMT+7)
Hongkong Airlines said Thursday it was considering cancelling a $3.8 billion order for 10 Airbus A380 superjumbos, which would deal a blow to the under-pressure European airplane maker.

"There are no firm decisions at this point. It will depend on how the business and the external environment evolves in the future," a spokesman for Hongkong Airlines said.

Cancellation of the order would be a blow to Europe's Airbus and its parent company, EADS, following the discovery of cracks in the wings of several of the A380s. The manufacturer also says it is being hurt by a row between Brussels and Beijing over a European carbon tax.

Hongkong Airlines A320-200 aircraft

Airlines flying to, from or within the European Union are required to monitor CO2 emissions for entire journeys and, if necessary, pay for exceeding their carbon allowances. China has blocked purchases of Airbus long-haul jets by Chinese companies in retaliation to the tax, EADS says.

Hongkong Airlines, the third biggest carrier in the southern Chinese city based on passenger numbers, has recently cut long-haul flights to Moscow and announced the suspension of all-business class flights to London.

Executives say their strategy is to focus on short-haul regional routes between Hong Kong and other leisure destinations in Asia, including Thailand's Phuket, China's Sanya and Japan's Osaka. The airline says it intends to replace older Boeing 737s in its fleet with new Airbus A320s as they become available. It would eventually have an "all Airbus" fleet which will provide cost efficiencies in service and management.

Hongkong Airlines A320-200 first welcome

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