The Largest Airline in the world, which has invested tens of billions of dollars in more than 100 Airbus a380s, has been struggling to finalize a deal to buy another 36 to keep assembly lines open, due to differences with engine maker Rolls-Royce.
It finally looks as if the superjumbo jet is on her last legs due to the fact that her father(Emirates) is about to look to the other side of the Airbus Plant.
As it stands now, Airbus is looking closely at closing A380 factories sooner than expected as part of a reshuffle of orders, with Chief Executive Tom Enders unlikely to leave the situation unresolved when his mandate ends in April, they said.
Another individual who is familiar with the matter said Airbus was looking “extremely seriously” at setting the timetable for a shutdown but said no decision had been taken.
No doubt, Airbus A380s have been used to promote a luxury lifestyle with the Emirates brand, featuring lounges and showers on board, and were part of the set for a 2017 advertisement with Hollywood actress Jennifer Aniston. It says the jets, some with over 600 seats, have helped the airline at slot-constrained airports.
But no doubt, the sales of such four-engined jets are going down as many airlines switch to smaller and less thirsty twin-engined jets like the A350 and Boeing 777 due to improving size and range. Airbus A350 competes with Boeing 777 and 787 which is such a big reason why Emirates is considering to go for Airbus A350.
About A350 Fuel cost
All Airlines love saving on gas money. Airbus A350 consumes 25% less fuel and emits 25% fewer emissions than previous generations of planes. Expect airlines to tote their planet savings strides. It’s good news for everyone.
Airbus is trying to broker a complex workaround which could see Emirates take smaller jets also powered by Rolls-Royce while it tries to secure homes for as many A380s as possible, with British Airways recently expressing interest.
Airbus has dangled the prospect of closing A380 production before, and industry sources say such maneuvers can be a negotiating tactic and the talks remain difficult to predict.
But time is running out for the A380 with few airlines willing to spend the sums invested by Emirates, which has made it a backbone of its global network alongside the Boeing 777.
If confirmed, a decision by Emirates to order the A350 would ease a separate headache for Airbus and engine partner Rolls-Royce after Emirates axed an A350 order in 2014.
Airbus and Rolls are keen to maintain a foothold at the largest Arab carrier and prevent Boeing from filling the gap with more of its General Electric-powered 777s. The A350 competes with both the Boeing 777 and smaller 787. Any deal depends on the backing of Emirates which sources say holds many of the cards in the sometimes heated discussions.
Rolls continue to owe the Dubai carrier penalties for under performance on Trent 900 engines already in its A380 fleet, giving Emirates leverage to win a good deal on A350 engine maintenance.
Also likely to weigh a game plan, analysts said, is Boeing. It blocked an earlier Airbus bid to put the A350 back in Emirates with a draft deal for 40 787s in 2017 and is seen likely to renew the effort as it negotiates to close the deal.
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