TOULOUSE, France: Europes Airbus is scrapping production of the A380 superjumbo, with lackluster sales forcing it to abandon a dream of dominating the skies with a 21st century cruiseliner.

The worlds largest airliner, with two decks of spacious cabins and room for 544 people in standard layout, was designed to challenge Boeings legendary 747 but failed to take hold as airlines backed a new generation of smaller, more nimble jets.

Airbus said on Thursday the last A380 would be delivered in 2021.

The shake-up came after Emirates – the largest A380 customer – decided to reduce its orders for the iconic superjumbo and order a total of 70 of the smaller A350 and A330neo instead.

It was a painful decision for us. We have invested a lot of effort, a lot of resources and a lot of sweat…but obviously we need to be realistic, Airbus Chief Executive Tom Enders said.

Airbus said it would enter talks with unions in coming weeks over the 3,000-3,500 jobs potentially affected.

It took a charge of 463 million euros for shutdown costs, but is expected to be forgiven some 1 billion euros of outstanding European government loans under a funding system that stands at the center of a trade dispute with Boeing.

Airbus will produce 17 more of the planes including 14 for Emirates and 3 for Japanese airline ANA.

As part of the restructuring, Emirates placed a new order for 40 A330-900neo jets and 30 A350-900 aircraft, partially restoring a purchase of A350s which it canceled in 2014.

Responding to behind-the-scenes concerns from airline customers from Asia to Europe, Enders stressed Airbus would continue to support the A380 as long as it remains in service.

LEADING BUYER DISAPPOINTED

Emirates, which had built its global brand around the A380 and Boeing 777 and which also has 100 of the Airbus superjumbos in its fleet, said it was disappointed by the closure.

Emirates has been a staunch supporter of the A380 since its very inception, said Emirates Chairman Sheikh Ahmed bin Saeed al-Maktoum.

While we are disappointed to have to give up our order, and sad that the program could not be sustained, we accept that this is the reality of the situation, he added.

Reuters

LEAVE A REPLY