Airbus reportedly sketching contingency plans to phase out the production of A380 if fails to win Emirates order, sources close to airbus said. To keep the production line open, Airbus need to secure an order for at least 36 aircraft valued $16billion from Emirates which was expected to finalise at the last Dubai Airshow, but never materialised.
Both Emirates and Airbus are reluctant to commit to each others demand; Airbus is not willing to keep the money-losing production line open without any confirmed orders and on the other hand Emirates didn’t want to place an order without a guarantee that production will continue at least for another ten years to provide a steady flow of replacement aircraft, spare parts, engineering expertise, etc.
Airbus delivered 14 A380s so far this year, has plans to cut the production rate to six beyond 2019, from 12 in 2018 and 8 in 2019, COO Fabrice Bregier confirmed.
The A380 was developed at a cost of 11 billion euros 12 years ago in 2005 and so far the total program cost estimated to be around 26 billion euros. At the current production cost Airbus needs to sell at least 30 more aircraft to keep the production line open for at least another 10 years, which is highly depends on Emirates commitment.