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Airbus ready to axe A380 if fails to win Emirates deal

Ersin Çelik
17:14 - 27/12/2017 Wednesday
Update: 17:15 - 27/12/2017 Wednesday
REUTERS
A new Airbus A380 aircraft
A new Airbus A380 aircraft

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Yet if talks succeed, European sources say there is a glimmer of hope for the double-deck jet, which Airbus says will become more popular with airlines due to congestion.

Singapore Airlines, which first introduced the A380 to passengers in 2007, showcased an $850 million cabin re-design this month and expressed confidence in the model's future.

Airbus hopes to use an Emirates order to stabilise output and establish a safety net from which to attract A380 sales to other carriers, but has ruled out trying to do this the other way round, industry sources said.

As of the end of November, Airbus had won orders for 317 A380s and delivered 221, leaving 96 unfilled orders.

But based on airlines' intentions or finances, 47 of those are unlikely to be delivered, according to industry sources, which halves the number of jets in play.

Airbus needs to sell at least another 30 to keep lines open for 10 years and possibly more to justify the price concessions likely to be demanded by any new buyers.

To bridge the gap, Airbus plans to cut output to six a year beyond 2019, from 12 in 2018 and 8 in 2019, even if it means producing at a loss, Reuters recently reported.

Chief Operating Officer Fabrice Bregier confirmed this month Airbus was looking at cutting output to 6-7 a year.

If Airbus does decide to wind down production, some believe Emirates will ask Airbus to deliver the remaining 41 it has on order and then keep most A380s in service as long as possible.

Even so, some A380s are likely to be heading for scrap.

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