Emirates cuts back on A380 orders

Marco Green
February 19, 2019

Emirates has also chose to continue growing with Airbus' newest generation, flexible widebody aircraft, ordering 40 A330-900 and 30 A350-900 aircraft. "The total order book of about 7,600 aircraft will allow us to continue to increase production". The company, he added, had to base its decisions on facts and "we simply don't have enough backlog [of orders] to carry on".

Production of A380: The Major part of Airbus A380 was manufactured in different parts of Europe that are France, Germany, Spain, and the UK, and the remaining parts of the Airbus A380 supplied by Rolls-Royce, General Electric, United Technologies etc. So Airbus will produce just 17 more of these planes - 14 for Emirates over the next two years and 3 for Japanese airline ANA. But the A380's demise is a stark admission of defeat in the race against Boeing, which had pointedly dismissed Airbus's bet that airlines wanted huge transporters serving a handful of global hubs. To date, it has only produced 234, according to CNN. The production of A 380, which is recognized to be the world's biggest commercial passenger plane, that would be stooped after 12 years of services.

Departing Airbus CEO Tom Enders told CNBC, "If you have a product which, despite all the efforts you put into that, you can't sell anymore or can sell only below production costs, then you have to stop that product and this is the decision, the painful decision, we had to take".

Airbus' consolidated order intake in 2018 totalled €55.5 billion (RM254.48 billion) with the consolidated orderbook valued at €460 billion on Dec 31, 2018, under the International Financial Reporting Standard 15. The consolidated revenue rose to 63.7 billion Euro, which mainly reflects a record number of commercial aircraft shipments. Airbus said it expects to deliver 880 to 890 planes this year after 800 last year, reflecting steady demand for the A320, the workhorse midsize jet for short and medium-range flights.

Airbus had faced scepticism over the plane's prospects since the 1990s, when it began to envision a competitor to Boeing's hugely successful 747.

In 2021, production of the world's largest passenger jet will be terminated following a painstaking ongoing sales campaign to attempt to secure new orders from airlines around the globe. In January 2018, the Emirates saved the A380 program by placing an order for 36 aircraft. But this week, it followed other airlines like Qantas of Australia in canceling orders. Not only is the aircraft perceived as too big, but it's inefficient compared with newer Airbus models (A350 XWB), and hence frequently branded "unnecessary" - given other commercial jets can fly further more efficiently, while still accommodating a large number of passengers.

"Emirates has been a staunch supporter of the A380 since its very inception", Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive of Emirates Airline and Group, said in a statement on Thursday.

European company Airbus SE is putting an end to the production of A380s due to lack of demand.

Other reports by Click Lancashire

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