Tuesday, May 30, 2023
Support Our Journalism
HomeEconomyIt's goodbye A380s as Airbus finally scraps the superjumbo jet

It’s goodbye A380s as Airbus finally scraps the superjumbo jet

Deliveries of the double-decker A380 jets will stop by 2021 as Emirates, the only remaining major buyer, cut its order by 39 jets.

Text Size:

Airbus SE scrapped the slow-selling A380 superjumbo model that was once its flagship program after just a dozen years in service.

The European planemaker will cease deliveries of the double-decker jet in 2021 after Mideast carrier Emirates, the only remaining major buyer, cut its orderbook by 39 jets, it said in a statement Thursday.

Key Insights

“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,” Airbus Chief Executive Officer Tom Enders says in release. The ax has been hovering over the A380 for years after most top airlines bought only a handful of the jets, but the end has come quickly after Airbus said Feb. 1 it was reviewing the future of the remaining backlog at Dubai-based Emirates. The decision will help create a clean slate for CEO-designate Guillaume Faury when he takes over from Enders in April. While it will affect 3,500 positions over the next three years, the ramp-up of other models will blunt the impact on employment levels. Emirates will take only 14 more A380s while ordering 30 A350s and 40 smaller A330neos, leaner twin-turbine planes worth $21.4 billion at list price, with deliveries starting 2021 and 2024 respectively. It said the superjumbo will remain in service into the 2030s.

Also read: Despite engine troubles, IndiGo & GoAir’s A320neo aircraft unlikely to be grounded: DGCA

Market Reaction

Airbus shares had gained 24 percent this year as of Wednesday’s close, valuing the company at 81 billion euros, after ending 2018 little changed. -Bloomberg

Subscribe to our channels on YouTube & Telegram

Support Our Journalism

India needs fair, non-hyphenated and questioning journalism, packed with on-ground reporting. ThePrint – with exceptional reporters, columnists and editors – is doing just that.

Sustaining this needs support from wonderful readers like you.

Whether you live in India or overseas, you can take a paid subscription by clicking here.

Support Our Journalism

Most Popular