Story ID: GPemiratesa380s01182018
Emirates Throws Airbus Lifeline with A380 Commitment
By: Gregory Polek
Caption: MOU covering up to 36 superjumbos breathes fresh life into program
Word Count: 455

Emirates Airline ended months of speculation about the immediate fate of the Airbus A380 program last month as the Middle East carrier signed a memorandum of understanding calling for an eventual firm order for at least 20 of the superjumbos and options on another 16. Valued at $16 billion based on list prices, the deal would increase Airbus’s A380 firm order backlog to 115 from 95 and, assuming a production rate of six per year, extend the line’s output for at least another three years. After delivering 15 of the airplanes last year, Airbus planned to cut the A380’s production rate to 12 this year, eight in 2019, and to six a year starting in 2020. Emirates itself, which took delivery of its 100th A380 late last year, plans to take six this year and another six next year. 

During a January 15 briefing to discuss last year’s orders and deliveries, Airbus Commercial Aircraft COO for customers John Leahy warned that a lack of orders threatened to close the A380 line in the near future. He noted that Airbus had engaged in talks with “a few key airlines” to support an aim to eventually return to producing 25 A380s a year, but he also characterized Emirates as “probably the only one in the market that has the capacity to take six to eight aircraft [a year] over several years.”

Originally expected at last November’s Dubai Airshow, the announcement about the A380s hinged on a demand by Emirates that Airbus issue a guarantee that production of the superjumbo would continue for at least another 10 years, the airline confirmed to AIN. However, neither side has indicated that the MOU signed last month came with any production guarantees. 

“This order will provide stability to the A380 production line,” said Emirates chairman and CEO Sheikh Ahmed bin Saeed Al Maktoum. “We will continue to work closely with Airbus to further enhance the aircraft and onboard product, so as to offer our passengers the best possible experience. The beauty of this aircraft is that the technology and real estate on board gives us plenty of room to do something different with the interiors.”

Airbus unveiled a raft of measures at the Paris Airshow last June aimed at boosting the flagging order book with the A380plus. The improvements, in what Airbus terms a “development study,” would include new large winglets and other wing refinements to provide “up to 4 percent fuel burn savings,” and 13 percent cost reduction per seat versus the A380. Engineers would achieve the benefits by increasing maximum takeoff weight to 578 tonnes and adding 80 seats in a new nine-abreast premium economy layout and an 11-abreast economy configuration.

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