China Southern Airlines (CSA) denied reports that it will receive US$250 million in compensation from Airbus for delayed delivery of it new A380s.

The CSA published an announcement Friday saying it has never authorized the release of such information.

The announcement said Airbus has informed CSA the delivery of the A380 passenger planes has been delayed and the two sides are in discussions.

"We will actively deal with and evaluate the issue," said the announcement, stressing that the delayed delivery will not have a serious impact on the company's business operation and financial results.

Airbus informed its global customers last Tuesday that the delivery date for the first A380 aircraft would be postponed to next October. The company said it would deliver 13 aircraft in 2008 and 25 in 2009.

Current and former senior directors of Airbus confirmed that the major problem is that software used its German and French centers are not compatible.

Under the new timetable, CSA, which aimed to cash in on the traffic boom for the 2008 Beijing Olympics, will receive five A380s in 2009.

Airbus is one of the top airplane manufacturers in the world. In 2005 alone it received orders for 72 airplanes from China, and delivered 65 aircraft the same year.

(Xinhua News Agency October 14, 2006)