Emirates will be reducing its A380 orderbook from 162 to 123 aircraft, following a review of its operations, and in light of developments in aircraft and engine technologies. The airline will take delivery of 14 further A380s over the next two years.
Emirates has also decided to continue growing with Airbus’ newest generation, flexible widebody aircraft, ordering 40 A330-900 and 30 A350-900 aircraft.
“As a result of this decision we have no substantial A380 backlog and hence no basis to sustain production, despite all our sales efforts with other airlines in recent years. This leads to the end of A380 deliveries in 2021,” said Airbus CEO Tom Enders. “The consequences of this decision are largely embedded in our 2018 full year results.”
“The A380 is not only an outstanding engineering and industrial achievement. Passengers all over the world love to fly on this great aircraft. Hence today’s announcement is painful for us and the A380 communities worldwide. But, keep in mind that A380s will still roam the skies for many years to come and Airbus will of course continue to fully support the A380 operators,” Enders added.
“The A380 is Emirates’ flagship and has contributed to the airline’s success for more than 10 years. As much as we regret the airline’s position, selecting the A330neo and A350 for its future growth is a great endorsement of our very competitive widebody aircraft family,” said Guillaume Faury, president of Airbus Commercial Aircraft and future Airbus CEO. “Going forward, we are fully committed to deliver on the longstanding confidence Emirates is placing in Airbus.”
Airbus will start discussions with its social partners in the next few weeks regarding the 3,000 to 3,500 positions potentially impacted over the next three years. However, the ongoing A320 ramp-up and the new widebody order from Emirates Airline will offer a significant number of internal mobility opportunities.
Paul Adams, aerospace sector specialist at management consultancy, Vendigital, said: “Airbus’ decision to end the production of its A380 model marks the end of an era but comes as little surprise. The A380 is an iconic aircraft and close to the hearts of many in the industry for its size, scale and engineering. However, in practice, flying such a large aircraft with four engines was no longer economically viable, requiring airlines to ensure it was consistently full of passengers, which was often unrealistic. While the Emirates order in 2017 kept things going, its production has therefore been scaled back over a number of years and a shutdown has seemed inevitable for some time.
“While the OEM originally sold the programme to suppliers on the basis of 1,500 aircraft, they have only made around 250. As such, this news will come as a major disappointment to many suppliers who have invested in fixtures, tooling and plants. However, while this development will undoubtedly have supply chain impacts, growth in other programmes, such as A320 should allow the OEM to mitigate them whilst increasing profitability across the business.”
