Airbus 380 saved by Emirates: The A380 Airbus received a reprieve when Emirates placed a firm order for 20 Airbus A380 aircraft. Emirates also included options to purchase a further 16 of the airplanes. Airbus had threatened to stop manufacturing the A380 planes after Emirates failed to place an expected order at the November Dubai Airshow.
Emirates Purchase Boeing Dreamliners in November 2017
The contract is worth $16 billion (£11.5 billion) to Airbus. Having made the A380 Airbus an important aspect of its business, Emirates was expected to have placed an order at the Dubai Airshow in November. However, rather than going for the Airbus as expected, Emirates ordered 40 Boeing 787 Dreamliners in their place. This upset Airbus, who then threatened to cancel production planned for the aircraft.
Airbus 380 Saved by New Order
The new order has changed all this, and deliveries of the A380 are expected to commence in 2020. Emirates already has 101 of the planes flying and there are also 41 planes under construction that had been ordered previously. The November Boeing order, therefore, came as a bit of a shock. So much so that sales director John Leahy stated on Monday that the A380 program would be terminated should Emirates fail to place another order.
Airbus Reliant on Emirates
Without the backing of Emirates, Airbus would be in serious trouble. The company is heavily reliant on that company and had reduced its annual production of 27 aircraft down to just 12 this year with only eight planned for 2019. This new order gives the Airbus the breathing space it needs to enable it to continue production for the next 10 years. It is believed that by 2028 the aviation market should have grown sufficiently for the Airbus product to have a good future.
Airbus A380 Superjumbo Ideal for Congested Airports
A major reason for Airbus difficulties has been that airport congestion is not the problem it once was. The Airbus A380 superjumbo aircraft can carry a large number of passengers between congested hub airports. There are many airports where takeoff and landing slots are at a premium. Aircraft that can carry large numbers of passengers are extremely welcome and popular in these airports. That’s the market that the A380 met. However, recent slackening in congestion has enabled smaller aircraft that burn less fuel to take up the slack.
Airport Congestion Increasing Creating an Airbus A380 Market
However, the air travel market is increasing again, and it seems as though congestion is on the way up. Not yet to the critical point, but enough to persuade airline companies to invest in large passenger efficient planes. They had switched to smaller fuel-efficient alternatives when previous congestion eased. Now may be the time to look at Airbus for its future investment potential.
The Airbus A380 has twin decks of seats along with lounges, bars, duty-free shops and even beauty salons. Such amenities are very popular with passengers. This is the type of passenger-efficient plane that may be the future of commercial airlines.
