There Are Only 79 Orders Left for A380s. Will They Ever Be Delivered?
Airbus's A380 program was dealt yet another blow this week as Qantas canceled a long-standing order for eight of the super jumbos. Recent months have seen the backlog of orders dwindling down as more airlines cancel orders. Airbus had netted only four orders for the A380 in the whole of 2018, a number that included Emirates' lifeline order for the behemoth aircraft. Airbus delivered only 12 of the massive jets to operators in 2018.
The plane manufacturer's official order backlog for the A380 officially stands at 79, broken down by airline as follows:
A380 Official Backlog: 79
- Emirates: 53
- Amedeo: 20
- Air Accord: 3
- ANA: 3
While the official order backlog currently stands at 79, we can safely say that at least 23 of planes will never get built. The orders for Amedeo and Air Accord will never actually take to the air. Amedeo, a leasing company, is already struggling to find a use for its current A380 fleet, with no takers to be found. They have delayed their A380 order indefinitely. Air Accord, which appears to be a shell company used to take delivery of aircraft for defunct Russian airline Transaero, will most certainly never actually take delivery. So why are these orders still on the books? It would seem Airbus is happy to keep the orders around simply to make the backlog numbers look better than they actually are.
The Emirates A380 order is also in question at this point. Just last week Airbus confirmed that it was in talks with Emirates about its current A380 order. The doubt stems from the fact that Emirates hasn't completed contracts with engine maker Rolls Royce to outfit the planes with its required four powerplants. Emirates hasn't been happy with the performance of the current Rolls Royce engines. This calls into question if the lifeline order will even be completed.
The issue for Airbus is twofold. Not only are new orders not being placed, but the secondary market is uninterested in the plane as well. As lessors have planes returned, no one is stepping up to take over operation of the jets. Recently we have even seen leasing companies sending A380s off to the scrap heap.
If you are looking to catch a ride on an A380 before it goes the way of the dodo bird, you have some options from a number of operators:
- Air France
- ANA
- Asiana Airlines
- British Airways
- China Southern
- Emirates
- Etihad
- Korean Air Lines
- Lufthansa
- Malaysia Airlines
- Qantas
- Qatar
- Singapore Airlines
- Thai Airways
If all of the current issues with the A380 program leads to Airbus stopping production, the A380 would be one of the shortest-run production commercial aircraft in history. Certainly not what Airbus had in mind when it made its estimated initial investment of $25-30 billion in the A380 program.
Richard Aboulafia, VP of analysis for the Teal Group, who has closely followed the A380 program for years, is not optimistic. His outlook for the program over the past few years has been bleak to say the least but his current opinion leaves little room for hope:
"It's dead. It was born to die. Simply the dumbest program of modern times," he told TPG in an email.
For now it seems it's just a matter of time before Airbus will announce it's ending the program. The bigger question at this point is just how many of the aircraft in the order backlog will realistically take to the skies.
H/T: Reuters
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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.