Emirates Airways, which owns and flies nearly half of all the A380s ever built, and which threw Airbus a lifeline order for more last fall, is now having second thoughts and may shift all or part of that last order to A350s. In effect, that would force Airbus to shut down the production line as soon as its other orders, few as they are, are filled.
The giant plane, much-loved by its enthusiasts, is not popular with airlines because its four engines burn much more fuel than two-engine competitors such as the A350 and Boeing 777. Those planes can carry well upward of 300 passengers; while not as many as the 500 or so an A380 can take, the seat miles cost is much cheaper, and the planes can be profitable on many more routes.
That’s in part because the A380 was built on a theory that the future of air travel lay in moving large groups between world hub cities, and then flying them on to smaller destinations in smaller planes. But newer planes such as the A350, 777 and 787 make point-to-point non-stop service to smaller cities possible.
Only the Gulf carriers still operate real hub-and-spoke systems that support A380 economicallythat carry several hundred passengers, although not as many as the A380, and even they are having doubts. Emirates is also the world’s largest operator of 777s, and has been having issues with Airbus over its Rolls Royce engines for the A380 not meeting fuel and performanc targets. That’s part of what’s behind the discussion of switching orders.
If Emirates converts its last orders to other planes, that will reduce the sold but undelievered order book to about 50 planes, with no new orders in prospect, and used planes going begging, Airbus will likely need to close the line and convert the resources to building more of its popular models, including the A320neo and A321.
