Airbus Raises Questions Over A380, Cuts A330 Production
For the first time, AirbusCFO Harald Wilhelm has raised the possibility of discontinuing production of the Airbus A380, as sales of the aircraft lag far behind expectations.
Wilhelm said at the company’s investor day that the A380 will either have to be equipped with new engines or discontinued.
Wilhelm reiterated that Airbus will break even on the program in 2015 for the first time, and that will also be possible in 2016 and 2017, but with the current environment, not in 2018.
The statement makes clear that Airbus is under increasing pressure to make a decision soon about the future of its largest jet. Emirates so far has been the only airline to call for the re-engined A380. With firm orders for 140 aircraft, the airline is by far the largest customer for the type.
Amedeo CEO Mark Lapidus has also been in favor of an updated version, but in his opinion, the move should come later in connection with better engine technology and a further stretch of the aircraft.
Airbus has firm orders for 318 A380s, 144 of which have been delivered. An Emirates follow-up order at last year’s Dubai Air Show saved the company from having to reduce production of the type in the coming years.
Airbus has had no new orders for the A380 this year. Key customers—such as Lufthansaand Air France—have reduced their commitments.
Separately, Boeing announced a reduction of the Boeing 747-8 output earlier this week, indicating the slump in demand for the largest passenger aircraft.
Airbus also said on Thursday that it may have to cut production of the A330 further ahead of the transition from the current model to the A330neo. It is currently building ten A330s per month, dropping to nine by the fourth quarter of 2015.
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