Airbus might discontinue A380
News that Airbus might discontinue the production of the A380 in 2018 has upset its customers and knocked its shares.
The possibility that the group might stop production was muted by the aircraft manufacturing giant as it unveiled that its expected profits would be flat in 2016.
Its finance director Harald Wilhelm told analysts that Airbus would be able to break even on the super jumbo by 2018 ‘if we would do something on the product, or even if we would discontinue the product’.
Airbus has been considering three options with the A380 – to cut production, to invest in new engine to make it more attractive to buyers, or discontinue it altogether.
The announcement knocked Airbus shares by 10.4% and prompted an angry response from Emirates boss Tim Clark.
Clark told Reuters that if Airbus decided to go down the upgrade route, and add new Rolls-Royce engines, Emirates would eventually replace all the 140 aircraft it had ordered with the new version.
But he told the news agency: "I am not particularly happy as you can imagine. We are on the hook for this plane. I get pretty miffed when we have put so much at stake."
Following the reaction, Airbus head of corporate communications Rainer Ohler issued a statement saying: "The entire Airbus top management continues to believe strongly in the market prospects of the A380, but any investment by Airbus requires a sound business case, which we will continue to study."
In another blow, earlier this week Qatar Airways announced it was postponing delivery of its first A350 jetliner ‘until further notice’, but refused to give a reason.
The delivery had originally been planned for this weekend, followed by a VIP flight to Doha.
Qatar Airways has ordered 80 of the new aircraft, making it the biggest A350 customer.
It said both entities are committed to introducing the A350 ‘very soon’.
The aircraft was due to start flying on the Doha-Frankfurt route from next month.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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