The demise of the Airbus A380.

Airbus SE have recently announced their decision to stop the production of the model A380 by 2021, which was delivered by Tom Enders the Airbus Chief Executive. The Airbus A380 at the start of its production was the spacious, quieter and more comfortable alternative for passengers. As a result of the halted model production, Airbus has estimated at least 3,500 jobs to be affected. The company’s largest consumer, Emirates are said to be decreasing their order from 53 aircrafts down to a mere 14 aircrafts.

The A380 for many years had been a popular aircraft among its buyers and therefore had struggled to keep up with their orders, making their decision a turning point for many in the aviation industry. Despite their popularity, Airbus encountered several glitches very early on. For the Airbus A308, issues had varied from its faulty communication to its first flight in 2007, when the climate of the economy was at crisis point.

The largest consumer of the model, being the Emirates Airline ordered 160 units in total. Despite these impressive figures, Emirates inevitably became a part of the A380 demise. As the predominant customer for the Airbus, the airline held the power to factually make or break Airbus SE. Therefore, Emirates inconclusive nature regarding the 20 units had Airbus withdrawing the production.

Unfortunately for Airbus, plans for resale have not exactly gone accordingly.  With the US carrier completely avoiding Airbus, the alternatives were the Chinese and Japanese airlines. However, it is worth mentioning that the Chinese carriers have purchased models in incredibly low numbers and as for the Japanese it is a recent phenomenon as they traditionally are Boeing 747 consumers. However, adding to the vortex of negativity surrounding the A380, Qantas Airways Ltd have cancelled an outstanding order alongside the retraction of 20 orders by Amedeo.

George Ferguson the global aviation analyst says that, “Airbus” cancellations of the A380 eliminates a drag of commercial airplane margin, given at the current rate of 12 the company garnered no profit on 2 billion euros of revenue. Maintaining production at lower rates would have resulted in a loss”.

Where the A380 model has monopolised in airports such as London Heathrow with the adoption of the model, it has sadly failed to create shockwaves in the aviation industry to allure potential buyers. Airline popularity lies with aircraft models that encompass luxurious elements including flight bars, showers and suites. This decision by airlines have also proved to pay off, as the passengers have seemed to indulge in the newer model facilities.

© 2019 Christopher Hanges

www.whitestonechambers.com

law@whitestonechambers.com
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