Emirates unsure on A380 deal amid concern Airbus could scrap jet
Emirates, the world’s biggest long-haul airline, is holding out for assurances about the future of Airbus' A380 program before committing to a US$8 billion order for more of the double-decker aircraft.
While Airbus is pushing for a deal at November’s air show in Dubai, where the carrier is based, concern that the value of used A380s will plummet if the slow-selling model is canceled represents a major sticking point, together with the proposed price, Tim Clark, the airline’s president, said in an interview Thursday.
“I know they would like us to do something,” Clark said in London. “At the moment we are not at that state of readiness. We need copper-bottomed undertakings that they would do everything they needed to do to keep the program going. We don’t want to be left with aircraft that have no value.”
Airbus announced in July that it will slash A380 production to eight jets a year in 2019, down from 15 this year and 28 in 2016, casting doubt over the model’s future.
That plan won’t change even if the Toulouse, France-based aircraft manufacturer gets another purchase contract before the end of this year, unless the number of planes bought is unexpectedly high, Chief Executive Officer Tom Enders said at the time.
Emirates is already the No. 1 superjumbo buyer, with 97 A380s in operation out of firm orders and commitments for more than 140 planes. The model has a list price of US$436.9 million, though key customers can get big discounts.
Airbus offered an enhanced 'plus' version of the A380 in June featuring fuel-saving winglets, which combined with an already-announced layout revision accommodating 80 more people would shave 13 percent from costs per seat.
Emirates is exploring the upgrade with a view to buying 20 more planes, though Clark – who originally campaigned for a more significant upgrade featuring new engines – has said he doesn’t need the extra capacity.
U.S. revival
Emirates also needs to consider how to deal with its oldest 25 A380s, which are due to be replaced by the last 25 planes of its existing order. It’s possible that the original airliners, some of which the carrier owns, may be retained to augment capacity, Clark said.
Airbus was already planning to slow A380 production to one aircraft a month as of May 2018. The reductions outlined in July mean that it is no longer breaking even on a per-plane basis.
Clark, who spoke at the 2017 Aviation Festival, said that Emirates plans to reverse reductions in U.S. capacity over the next six to nine months.
The airline cut flights earlier this year following a slump in demand linked to curbs that U.S. President Donald Trump’s administration imposed in response to concerns about terror threats and security standards at Middle Eastern airports. Traffic has now recovered almost to previous levels, Clark said.
“It has been a good story, a lot better than we thought it would be,” he said. “It has settled out now. People are getting used to the new protocols.”
Emirates aims to restore twice-daily flights to Boston, Los Angeles and Seattle and a daily service to Fort Lauderdale, Florida, Clark said.
The carrier has scaled back capacity through the early retirement of more than 60 aircraft, the executive said, with others used to increase offerings to destinations including the African cities of Lagos, Abuja and Luanda.
While U.S. carriers seeking to block Emirates’s expansion amid claims it has benefited from illegal state aid may have hoped that Trump would reignite an investigation of its funding, that appears not to be the case, the executive said.
“So far so good,” he said. “I believe the administration is not minded to take action against us for reason of all the other things that are going on in the White House at the moment.” He repeated denials that Emirates has received unfair subsidies.
Qantas - Qantas Frequent Flyer
22 Jul 2015
Total posts 219
The 3800 will be around for a long time; very nice aircraft to fly in.
31 Mar 2016
Total posts 619
@Nick Sydney 2:
03 Sep 2017
Total posts 49
Absolutely love the A380. Especially the upper-deck, which I find it's much quieter than the main-deck. And it's the most quiet cabin of any aircraft to date.
31 Mar 2016
Total posts 619
@KinHo:
Qantas - Qantas Frequent Flyer
18 Jun 2015
Total posts 57
Seems like both are counting on the other. Airbus wants EK to buy more 380s, but EK won't buy them unless Airbus doesn't end the program.
Jetstar Airways - Qantas Frequent Flyer
23 May 2017
Total posts 17
This baby is capable of real improvements to engines and layout also ventilation. It could become the preferred ride ahead of the underwhelming A350-900 series
Jetstar Airways - Qantas Frequent Flyer
23 May 2017
Total posts 17
This baby is capable of real improvements to engines and layout also ventilation. It could become the preferred ride ahead of the underwhelming A350-900 series
31 Mar 2016
Total posts 619
@james vvvv:
13 Nov 2015
Total posts 49
Sad. The A380 is one of the best aircraft to have been built. It is very quiet, very! Add in the better cabin air circulation. There's nothing quite like flying first class in the A380, true luxury in space and comfort. That makes for a more restful flight especially on long hauls. I wish U.S. carriers had purchased this fantastic aircraft along with LATAM.
21 Jul 2011
Total posts 89
I much prefer the 787 and 350. Not sure why Y is like, but for J, the 380 isn't as nice in my book
03 Sep 2017
Total posts 49
How good any class in an aircraft is, depends on what the airline fit it with. But in terms of the cabin noise level of the engine, A380 is the most quiet by far.
31 Mar 2016
Total posts 619
@KinHo:
31 Mar 2016
Total posts 619
@bsb:
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