Wednesday, 26 September, 2018

Emirates orders 36 additional widebody Airbus A380s worth $16 billion

Emirates orders 36 additional widebody Airbus A380s worth $16 billion Emirates orders 36 additional widebody Airbus A380s worth $16 billion
Nellie Chapman | 20 January, 2018, 04:20

Leahy has said on Monday that if a deal with Emirates could not be worked out there would be "no choice but to shut down the program".

Emirates Airlines said yesterday it has struck a $16 billion deal to buy 36 Airbus A380 superjumbos.

The additional Airbus A380s will be delivered to Emirates from 2020 onwards.

Airbus won a programme-saving order for its A-380 superjumbo that could be worth US$16 billion (S$21.1 billion) at list prices and add at least a decade to the model's lifespan.

That fact was not lost on Emirates Airlines CEO Sheikh Ahmed bin Saeed Al Maktoum, who noted "this order will provide stability to the A380 production line".

"We've been able to deploy it on different missions across our network, giving us flexibility in terms of range and passenger mix", Sheikh Ahmed said.

Emirates orders 36 additional widebody Airbus A380s worth $16 billion

The Dubai-based airline said that with the new order it will have commitments for a total of 178 A380s worth $60 billion.

The agreement hands a lifeline to the slow-selling aircraft, in service for just 10 years, and rescues one of Europe's most visible industrial symbols overseas. Talks between Airbus and Emirates about a fresh A380 order broke down at the last minute at the Dubai Airshow in November, when the Gulf carrier placed an order for 40 smaller Boeing (BA.N) 787s. It will be mutually beneficial with A380 being crucial to Emirates' business expansion plans along with the imports of the double decker jets being a key to Airbus's continuation program to manufacture aircrafts on a large scale.

Airbus produced its first A380 almost a decade ago, in July 2008, and Airbus COO of customers John Leahy said that this commitment would keep the company producing the four-engine double-decker for at least another decade.

But the A380 has been a disappointment for Airbus. Emirates and other operators of the A380 (including Air France and British Airways) will continue to have replacement parts and, potentially, replacement aircraft if they deem to order any. After two years of no sales, the Emirates deal is truly the only thing standing between the Airbus A380 and the scrapheap. The airline said it was evaluating its engine options for the latest order.

Emirates sees a viable future for the A380s in their fleet. "I'm personally convinced more orders will follow Emirates' example and that this great aircraft will be built well into the 2030s", said Leahy. It has invited the two engine makers to compete for the new A380 order, two industry sources said.