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spiplane
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Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 6:54 pm

On the Dutch news:

http://nos.nl/artikel/2008321-airbus...t-mogelijk-productie-van-a380.html

Message: low sales force either an early shut down of production or the need of a NEO version to boost sales. Apparently the existing version has no long term future according to Harald Wilhelm, Airbus CFO.

[Edited 2014-12-10 11:32:46]
A380 fan
 
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Stitch
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 6:58 pm

From the article: "The cancellation of an order from a leasing company for twenty aircraft is uncertain..."

Sounds like a rumor that Amedeo is looking at cancelling their order?


Bloomberg has picked it up, as well: http://www.bloomberg.com/news/2014-1...faces-spend-or-fade-conundrum.html

Quote:
While Airbus will break even on the plane in 2015, 2016 and 2017, that outlook doesn’t hold for 2018, forcing the company to either offer new engines to make the A380 more attractive or discontinue the program, Chief Financial Officer Harald Wilhelm told investors at a meeting in London today.
 
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spiplane
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:01 pm

Quoting Stitch (Reply 1):
From the article: "The cancellation of an order from a leasing company for twenty aircraft is uncertain..."

Sounds like a rumor that Amedeo is looking at cancelling their order?

The article indeed mentions that 'an order for 20 frames by a lease company is uncertain'
A380 fan
 
BiggerJetsPlz
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:01 pm

4 holes = kiss of death. Boeing, Airbus, and I are all slowly coming to terms with that sad, depressing reality.
 
YouGeeElWhy
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:02 pm

What will EK do? So much of their plan relies on this machine.

[Edited 2014-12-10 11:03:03]
 
Sooner787
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:12 pm

Quoting YouGeeElWhy (Reply 4):
What will EK do? So much of their plan relies on this machine.

Time to double down on the 779's ?
 
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TheRedBaron
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:16 pm

Well everyone and then comes another A380 thread that wants to kill it, but the way I see it some things do not add up.

The Oil price will go down and STAY down for a while some analysts predict an all out war between shale and well producers and the market will be flooded so price will stay down.

The industry is growing and traffic is going up, so the demand in the future will be there.

The aircraft has proven to be reliable and met his performance specs.

So there is a product that can be operated as advertised, there will be demand (use) for this product and also the actual economic price for operating is better han ever...

I can understand that to buy a small fleet of A380, the investment is over a billion, but some legacies have the financial help and cash flow to buy them. I bet that if they cancel the A380, someday in the future when demand, traffic and fares will make it come back PRICIER THAN EVER. and WE the pax will pay for it....

TRB
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DTWPurserBoy
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:18 pm

A NEO would give the program some life especially if the newer engines could be retrofitted to existing production aircraft. But in reality that never seems to happen.

I keep thinking of the additional life given to the DC-8-60 series with the CFM engines that became the -70 series. They soldiered on for many years after the upgrade.
Qualified on Concorde/B707/B720/B727/B737/B747/B757/B767/B777/DC-8/DC-9/DC-10/A319/A320/A330/MD-88-90
 
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seahawk
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:21 pm

Great news for the 779. Lately I read and heard a few comments that Airbus would be wiser to invest in a A350-1100 than in a A380NEO.
 
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Polot
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:25 pm

Quoting TheRedBaron (Reply 6):
I can understand that to buy a small fleet of A380, the investment is over a billion, but some legacies have the financial help and cash flow to buy them. I bet that if they cancel the A380, someday in the future when demand, traffic and fares will make it come back PRICIER THAN EVER. and WE the pax will pay for it....

The problem is when?

When traffic truly reaches a point where A380 size aircraft are the hot commodity, other manufacturers (i.e. Boeing, China) will jump in to try and steal the market. Airbus doesn't want to spend the money and then find that this demand doesn't occur until 15-20 years later (when a late 2010s/early 2020s era A380neo would easily be outclassed by new technology). I mean the A380 has only been flying for a little less than 10 years, in commercial service for a little over 7, and we are already talking about a Neo version. That is why Airbus is treading carefully.

Airlines don't want to go into a large spending spree on huge, expensive aircraft when oil is down and traffic is up only to find that they are being delivered right as oil prices are rising and traffic is falling again. A350/777 size aircraft are currently safer bets.

Timing is critical with aircraft [programs].

[Edited 2014-12-10 11:29:24]
 
aviationaware
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:26 pm

Quoting Stitch (Reply 1):
Sounds like a rumor that Amedeo is looking at cancelling their order?

Of course they are. They always said they wouldn't take white tails, and as they are nearing the time those frames would have to go into production, there is still no customer to be found anywhere. Cancellation is the only probable action to take.
 
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jetfuel
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:28 pm

The A380 production line will close by 2017. Twin jets are making more sense. Airbus will come to agreements with existing customers. Airbus must now look to future profits not just a hope
Where's the passion gone out of the airline industry? The smell of jetfuel and the romance of taking a flight....
 
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enilria
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:30 pm

Quoting Polot (Reply 9):
When traffic truly reaches a point where A380 size aircraft are the hot commodity, other manufacturers (i.e. Boeing, China) will jump in to try and steal the market.
Quoting BiggerJetsPlz (Reply 3):
4 holes = kiss of death. Boeing, Airbus, and I are all slowly coming to terms with that sad, depressing reality.

The issue is really two-fold.

1) Passengers paying the real money prefer frequency over a lower ticket price.
2) Most airlines prefer a higher price over volume.

Also...

1) Big plane = big risk every time it is deployed somewhere (e.g. EK in DFW)
2) Many airports can't handle it
 
BlueShamu330s
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:31 pm

Every time news surfaces about the venerable B747 being at risk of imminent demise, a story seems to get planted in some obscure place about the imminent demise of the A380; then one of the more trusted outlets runs with it and traction is gained...

It's industry mischievousness at large and predictable as day following night.

Rgds
Flying around India
 
chrisp390
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:32 pm

Maybe EK can buy the rights to its production and build it themselves in Dubai  
 
JimJupiter
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:32 pm

Click bait article, but I predict it will make at least a 2 part a.net thread.   
One is born, one runs up bills, one dies.
 
81819
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:33 pm

It could actually be financially advantages for Airbus to end production.

Just some quick stats.

The Airbus A380's current list price is $414 million. The official seat count (three class) is 525 seats. At list price Airbus sells each seat at $789,000.00.

The Airbus A350-1000 current list price is $341 million. The official seat count (three-class) is 350 seats. At list price Airbus sells each seat at $974,000.00.

On a per seat basis this represents a 19% difference in incomes between an A350 and A380.

If we consider Airbus need to sell 30 aircraft per year for the A380 program to remain viable and we use a standard 40% discount, the revenue difference between selling thirty A380's compared to forty five A350's is $1.75 billion per year.

If we change this scenario and assume Airbus need to discount the A380 by 50% per year to sell the aircraft, the revenue difference blows out to $3 billion per year.

Travelhound
 
chrisp390
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:33 pm

& what happened to Amedeo being so bullish that it could secure a customer?
 
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william
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:33 pm

From the Bloomberg article

"Airbus has won orders for 318 of the jumbos. That’s a fraction of the 1,200 it thought airlines needed in that size category when it started marketing in 2000."

Ouch....Are the same bean counters that came up with this figure still with the company?

And this...
"While popular with travelers, most carriers prefer smaller twin-jet models that are more fuel efficient and can access more airports"

I wander what kind of responses or excuses the Airbus sales team get when they try sale an A380 as part of the package?
 
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jetfuel
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:36 pm

Quoting travelhound (Reply 16):
It could actually be financially advantages for Airbus to end production.

Just some quick stats.

The Airbus A380's current list price is $414 million. The official seat count (three class) is 525 seats. At list price Airbus sells each seat at $789,000.00.

The Airbus A350-1000 current list price is $341 million. The official seat count (three-class) is 350 seats. At list price Airbus sells each seat at $974,000.00.

On a per seat basis this represents a 19% difference in incomes between an A350 and A380.

Exactly. More profit to be made by killing the A380
Where's the passion gone out of the airline industry? The smell of jetfuel and the romance of taking a flight....
 
Planesmart
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:37 pm

Perhaps EK have indicated they will do a retrofit upgrade of existing aircraft, if Airbus don't do a NEO. EK is a very good customer, but Airbus are exposed. Remaining orders likely subject to finance to operators satisfaction, so not impossible to defer or cancel.

If Airbus offer a NEO, how many existing orders will be switched, and not just by EK, causing production hiatus?

Of course the public stance may be a bit of arm twisting by Airbus, after the A350 order cancellation, given the A380 is a pivotal part of the EK business strategy, and customer satisfaction tracks more than 10 percentage points ahead of other aircraft in their fleet, permitting A380 v rest pricing.
 
chrisp390
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:37 pm

They are looking at ending the program in 2018, the year Virgin is set to receive theirs. Looks like in that case Airbus is fairly confident they will not be following through with their order
 
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william
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:39 pm

Quoting blueshamu330s (Reply 13):
Every time news surfaces about the venerable B747 being at risk of imminent demise, a story seems to get planted in some obscure place about the imminent demise of the A380; then one of the more trusted outlets runs with it and traction is gained...
Quoting JimJupiter (Reply 15):
Click bait article, but I predict it will make at least a 2 part a.net thread.

Tell the Airbus CFO to stop making threads like this so easy then. The CFO was talking to investors, you know those who have skin in the game .

"While Airbus will break even on the plane in 2015, 2016 and 2017, that outlook doesn’t hold for 2018, forcing the company to either offer new engines to make the A380 more attractive or discontinue the program, Chief Financial Officer Harald Wilhelm told investors at a meeting in London today."
 
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zippyjet
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:41 pm

Quoting DTWPurserBoy (Reply 7):

Sooner or later there's going to be a demand for mega people and cargo hauling. Unless there's some technology for efficient animal sized engines/power plant the need for a 4 holer exists. Imagine ending production and several years down the pike being caught with your pants down. (lack of availability). I'm being optimistic. It would be sad to see the 747-8 and butterbean Airbus go the way of honest politicans and tube TV's.
I'm Zippyjet & I approve this message!
 
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Polot
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:41 pm

I will add that the thing I found most interesting that Airbus admitted its marketing of the A380 was "at fault", with them letting too much customization and not pushing high density enough. Should have learned that from the 747's history   
 
Vladex
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:44 pm

Quoting jetfuel (Reply 19):

Profit for whom?
Simple math is not your strength apparently since by list prices A380 trumps these great twin engines,.
 
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william
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:46 pm

Quoting zippyjet (Reply 23):
Sooner or later there's going to be a demand for mega people and cargo hauling. Unless there's some technology for efficient animal sized engines/power plant the need for a 4 holer exists. Imagine ending production and several years down the pike being caught with your pants down.

When that time you speak of appears, then a new product more efficient with the same capacity will appear. It will most likely be a twin. Where is that A380 twin like aircraft Keejse used to push here on Anet?
 
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jetfuel
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:55 pm

Quoting Vladex (Reply 25):
Profit for whom?
Simple math is not your strength apparently since by list prices A380 trumps these great twin engines,.

Theres no Airbus profit for the A380. Game over
Where's the passion gone out of the airline industry? The smell of jetfuel and the romance of taking a flight....
 
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Polot
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:58 pm

Quoting Vladex (Reply 25):

Profit for whom?
Simple math is not your strength apparently since by list prices A380 trumps these great twin engines,.

List prices have little to do with profits and profit margins- especially as planes are never sold at list prices.
 
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zippyjet
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:59 pm

Quoting william (Reply 26):

If and when that time comes maybe development of an HSCT eould commense. Or, at least look into BWB and other "futuristic" designs that could lead the way to an HSCT airliner. Lighter materials are leading the way toward a twin that can carry 747-8 or A 380 capacity but engine development has to catch up.
I'm Zippyjet & I approve this message!
 
81819
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:59 pm

Another scenario!

Ending A380 production would allow the current FFL and other manufacturing facilities to be re-assigned for production of the A350.

Considering the A380 manufacturing plants still represent best practice, are currently being under utilised and with current orders could (some probably are now) become uneconomical in the near future, this option could actually represent better utilisation of industrial assets.

Considering the majority of plant have been in place ten plus years and as such have been written down to a comparative amount, this would be a substantially lower cost option than building new manufacturing and production facilities (to increase production of the A350).

Travelhound!

[Edited 2014-12-10 12:05:09]

[Edited 2014-12-10 12:11:34]
 
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7BOEING7
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 7:59 pm

Quoting william (Reply 22):
Tell the Airbus CFO to stop making threads like this so easy then. The CFO was talking to investors, you know those who have skin in the game .

"While Airbus will break even on the plane in 2015, 2016 and 2017, that outlook doesn’t hold for 2018, forcing the company to either offer new engines to make the A380 more attractive or discontinue the program, Chief Financial Officer Harald Wilhelm told investors at a meeting in London today."

Sounds like what he is saying is our production goal to break even can be met in 2015 thru 2017 -- most if not all slots are filled -- however going forward, 2018 and on, although there are orders the quantity of unfilled slots in any given year means the airplane cannot be built profitably.
 
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crimsonchin
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 8:00 pm

Quoting jetfuel (Reply 11):
The A380 production line will close by 2017. Twin jets are making more sense. Airbus will come to agreements with existing customers. Airbus must now look to future profits not just a hope

That sounds more like wishful thinking on your part than anything that will actually happen. Fact is EK has repeatedly stressed how crucial the A380 is for them. Unless EK and other airlines cancel en masse, the A380 isn't going anywhere until at least all the current orders are delivered, which won't be in 2017. You might just have to live with that  
 
Longhornmaniac
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 8:01 pm

Quoting Vladex (Reply 25):
Profit for whom?

Airbus

Quoting Vladex (Reply 25):
Simple math is not your strength apparently since by list prices A380 trumps these great twin engines,.

Nor yours, apparently. If you assume the demand for seats is independent of the type of aircraft (not a bad assumption), then Airbus makes more per seat by selling smaller aircraft. Put another way, in order to fill the same amount of seats, an airline would have to buy, for simplicity's sake, 2 A350s to cover 1 A380. While an A380 costs more on a per aircraft basis, selling 2 A350s is more revenue than 1 A380.

Quoting william (Reply 26):
Keejse


Cheers,
Cameron
Cheers,
Cameron
 
Byrdluvs747
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 8:09 pm

An A380 Neo amounts to Airbus doubling-down on the program for primarily the sake of EK. In addition, a neo still doesn't resolve the A380's inherent flaws. Besides being an expensive aircraft, it is unsuitable to a majority of carriers/routes(Not one frame sold in the Americas), and risky to own during downturns in traffic.
The 747: The hands who designed it were guided by god.
 
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LAX772LR
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 8:19 pm

Quoting Vladex (Reply 25):
Simple math is not your strength apparently since by list prices A380 trumps these great twin engines

Yes, and so does the A380's cost of production relative to those twinjets.... but forethought in that regard is apparently not someone else's strength.  

Quoting Longhornmaniac (Reply 33):
for simplicity's sake, 2 A350s to cover 1 A380. While an A380 costs more on a per aircraft basis, selling 2 A350s is more revenue than 1 A380.

And selling 2 (or more) A350s is something that's MUCH more likely to occur, than selling 1 A380.

Quoting william (Reply 26):
Where is that A380 twin like aircraft Keejse used to push here on Anet?

...ask KarelXWB   
I myself, suspect a more prosaic motive... ~Thranduil
 
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jetfuel
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 8:20 pm

Airbus Group, which has failed to find a new airline buyer for its A380 superjumbo this year, is at a crossroads that leaves it with two directions: spend heavily to improve the plane - or let it go.

This year is shaping up to be the first since the doubledecker entered service without a new airline customer. Its only buyer was a leasing company that has yet to line up a single carrier to take any of the 20 planes it ordered.

The backlog remains as thin as it is fragile, highlighted by the cancellation of six jets ordered by Japan's Skymark Airlines, with two close to handover.


Read more: http://www.smh.com.au/business/aviat...20141210-124a0c.html#ixzz3LWo8VElk
Where's the passion gone out of the airline industry? The smell of jetfuel and the romance of taking a flight....
 
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SEPilot
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 8:23 pm

Quoting DTWPurserBoy (Reply 7):
I keep thinking of the additional life given to the DC-8-60 series with the CFM engines that became the -70 series. They soldiered on for many years after the upgrade.

The DC-8 situation was unique in aviation history. There was an engine available that would fit, and it required little modification of the airframe to do it. There was also a fairly substantial number of airframes available with plenty of life left in them. Note that this is the ONLY re-engine program for an existing airframe that has been successful, at least in the jet age. I understand that there was a re-engine program for the 727, but it offered relatively minor improvement and was not widely implemented. The military did re-engine a lot of its KC-135's and other 707 based models (which is where the engine for the DC-8's came from) but Boeing did not offer it on the civilian side, not wanting to compete with the 757-767. Also, the 707, not being stretched, was a less attractive candidate for the re-engine.

So what is the relevance of this to the A-380? Simply that there is not a new engine that can be bolted on; it would have to be developed. And with a maximum of 318 airframes (assuming no more sales) to retrofit there is likely not enough of a market to pay the development costs of the engine. If the Trent XWB would be able to be adapted perhaps there would be a case for it, but as I understand it that is not the case (I am not sure why.)
The problem with making things foolproof is that fools are so doggone ingenious...Dan Keebler
 
karadion
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 8:27 pm

Quoting william (Reply 26):
Where is that A380 twin like aircraft Keejse used to push here on Anet?

He's on other websites like the Seattle Times & Hamilton's website pushing Airbus constantly
 
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N14AZ
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 8:33 pm

Quoting chrisp390 (Reply 21):
They are looking at ending the program in 2018

Interesting, where did you read this? Can you provide a link for this information?

Quoting william (Reply 22):
"While Airbus will break even on the plane in 2015, 2016 and 2017, that outlook doesn’t hold for 2018, forcing the company to either offer new engines to make the A380 more attractive or discontinue the program, Chief Financial Officer Harald Wilhelm told investors at a meeting in London today."

And guess what they will do. Sooner or later EK will replace their entire A388-fleet. I could imagine that even this justifies developing the NEO.
 
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7BOEING7
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 8:33 pm

Quoting CrimsonChin (Reply 32):
Fact is EK has repeatedly stressed how crucial the A380 is for them. Unless EK and other airlines cancel en masse, the A380 isn't going anywhere until at least all the current orders are delivered, which won't be in 2017. You might just have to live with that

The fact is most if not all of the airplanes to be built 2018 and on are for EK and they're not taking 30 frames a year. Keeping the line open to build 15 +/- airplanes a year is not anywhere near profitable nor smart. 747 deliveries only dropped that low (16) once between 1970 and 2002.
 
peterinlisbon
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 8:37 pm

Surely they could just slow down production as the orders start to thin out without closing the line down completely, and perhaps in 5-10 years or whenever the time is right they can do the NEO. The development costs are all paid now so presumably it doesn't cost that much to keep pumping them out. A NEO version 15-20 years after the entry into service of the orginal would work quite well as they could replace those that have ended their service life with NEO versions, and they would have 20 years' worth of engine improvements. Each A380 retirement could be replaced with an A380 NEO. Even if the customers are just Emirates and a few of the other existing customers, for 200-300 aircraft it would seem worthwhile, this time with a much lower development cost.
 
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SEPilot
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 8:42 pm

Quoting N14AZ (Reply 39):

And guess what they will do. Sooner or later EK will replace their entire A388-fleet. I could imagine that even this justifies developing the NEO.

Building the NEO for just EK does not sound like an economically viable proposition. They need to build 30 per year; EK cannot take that many. Since AFAIK most of the EK planes are leased, they can only replace them when they come off lease, and so they will be restricted to replacing them at the same rate that they were originally delivered. That will not work for Airbus. Unless they can attract enough new customers to keep production at at least 30 per year, they cannot afford to keep building it. Plus they will need to recoup the 2 billion or so the re-engine development will cost.
The problem with making things foolproof is that fools are so doggone ingenious...Dan Keebler
 
packsonflight
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 8:52 pm

Or this is just bargaining tactics for the upcoming A380NEO EK special
 
fcogafa
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 8:56 pm

Quote from the Australian article also says... "It's an excellent plane but it only works for the right destinations," said Air France-KLM chief executive, Alexandre de Juniac, who aims to cancel the last two of a dozen A380s on order and swap them for smaller models.

When are Air Frances next 380s due?
 
ikramerica
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RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 8:56 pm

Quoting 7BOEING7 (Reply 31):
Sounds like what he is saying is our production goal to break even can be met in 2015 thru 2017 -- most if not all slots are filled -- however going forward, 2018 and on, although there are orders the quantity of unfilled slots in any given year means the airplane cannot be built profitably.

Sounds like that too. Not that the line will shut in 2018, but that without substantial new orders or a reengine, the line will wind down because it makes no sense to offer it going forward. But it won't be lights off in 2018 for a variety of reasons.

What this comment does is indicate to airlines that if you have options and you want those planes, you better commit now before you miss out.
Of all the things to worry about... the Wookie has no pants.
 
User avatar
par13del
Posts: 10904
Joined: Sun Dec 18, 2005 9:14 pm

RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 8:59 pm

Quoting YouGeeElWhy (Reply 4):
What will EK do? So much of their plan relies on this machine.

Continue to use the a/c since they will have a virtual monopoly.

Quoting TheRedBaron (Reply 6):
and WE the pax will pay for it....

We always do, no airlines carries us on their dime  
Quoting enilria (Reply 12):
1) Passengers paying the real money prefer frequency over a lower ticket price.

Well business houses do, but John Q public will run after the lower fare over frequency.

Quoting enilria (Reply 12):
2) Most airlines prefer a higher price over volume.

Bingo, so they actually are not passing on the savings offered by the A380 to the folks on-board the a/c. Indeed some are charging a premium.

Quoting blueshamu330s (Reply 13):
then one of the more trusted outlets runs with it and traction is gained...

The fact that they are quoting an Airbus official is inconsequential to the power of the media  
 
81819
Posts: 2008
Joined: Fri May 23, 2008 9:13 pm

RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 9:03 pm

Quoting ikramerica (Reply 45):
What this comment does is indicate to airlines that if you have options and you want those planes, you better commit now before you miss out.

It could also mean airlines who have factored the A380 in to their (or other airlines) future fleet plans should start planning for another reality.

Conversely, this could mean airlines who have options for A350's better commit before they miss out!!!

Not a bad sales campaign!
 
Flyglobal
Posts: 542
Joined: Sat Mar 15, 2008 6:25 am

RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 9:04 pm

I believe that this is a game to discipline Emirates to keep demands reasonable and avoid to much investment..
And Airbus will discipline Emirates on price, saying: hey if you want it, we will build it for you, but your order and price must be good enough to finance this update (+ some margin).

This is the way I would deal with it.

I don't beleive that this is the end game for the A380, but Airbus will play the card to go not go out with a loss.
Given their accounting practice they only need to calculate add on costs (basically).

Regards

Flyglobal
 
fcogafa
Posts: 1330
Joined: Fri May 16, 2008 4:37 pm

RE: Airbus Considers Ending A380 Production?

Wed Dec 10, 2014 9:04 pm

It may explain Emirates renewed 'interest' in the A350, conversions anyone?
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