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Report: Airbus Plans to Shutter A380 Program Unless Emirates Orders More

Dec. 28, 2017
3 min read
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Report: Airbus Plans to Shutter A380 Program Unless Emirates Orders More
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It's an open secret in the aviation world that the Airbus A380 program is on life support. Since early 2014, Airbus has only secured orders for just five more examples of its behemoth four-engine aircraft. Over the same time, it's gotten cancellations notices for nine that were previously ordered. That's a net of negative four aircraft orders in four years.

Programs such as the manufacturer's "I Fly A380" initiative have failed to drive enough A380-specific demand for the aircraft to keep the airline orders coming. The original A380 aircraft has been retired by Singapore Airlines after just 10 years of service.

Now, it seems that the end of the A380 is getting closer and closer to being a reality. Citing three sources familiar with the matter, Reuters reports that Airbus is planning to shut down production of A380 unless it can secure another large order from Emirates. Already Airbus' largest A380 customer, Emirates recently took delivery of its 100th A380 and currently operates 101 of the 221 A380s in the skies today.

Both Airbus and Emirates have declined to comment on the Reuters report.

What is known is that Airbus is going to slow down its already-slow Airbus A380 manufacturing schedule:

  • 12 aircraft in 2018
  • 8 aircraft in 2019
  • 6 aircraft in 2020 and each year afterward
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Presumably, this slowdown is designed to stretch out the last 96 unfilled orders — 47 of which analysts believe will be cancelled — long enough to hopefully score more orders to extend the program's life.

Will Emirates eventually celebrate a 200th Airbus A380?

This report has the potential to become a self-fulfilling prophecy. Emirates has expressed concerns about ordering more A380s if the aircraft manufacturer doesn't continue to produce the aircraft for other airlines.

Once the eventual A380 manufacturing shutdown occurs, it'll become increasingly difficult for Emirates to maintain the 142 A380s that it's ordered and presumably wants to operate — or sell for a reasonable price. The Dubai-based carrier's doubts are surely not going to be soothed by news that it's the only lifeline the A380 has.

Another possibility is that this report could lead Emirates to double-down by ordering more A380s, hoping to prolong the program long enough for other airlines to come around to it. Airlines are currently ordering more "long and thin" aircraft like Boeing's 787 Dreamliner and the Airbus A350. But, as air traffic continues to rise, the A380 could once again become a viable option for airlines looking to move tons of people from point A to point B.

We still don't know exactly how this will play out, but for now, things aren't looking good for the A380. We certainly hope the A380 program will continue on for many more years, but with the fate of the program seemingly in Emirates' hands, it could very easily "pull the plug" on the aircraft.

Featured image by Alberto Riva

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Rewards Rate

4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
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  • Annual Fee

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  • Recommended Credit

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Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.