The additional Airbus A380s will be delivered to Emirates from 2020 onwards.
Published: Thu 18 Jan 2018, 1:05 PM
Last updated: Sat 20 Jan 2018, 3:23 PM
Emirates, the world's largest international airline, placed on Thursday a $16 billion order for 36 additional Airbus A380 aircraft, a move seen by the aviation industry as very critical in providing much-needed stability to the A380 production line.
A Memorandum of Understanding was signed on Thursday morning at the airline's headquarters in Dubai by Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and Group, and John Leahy, Chief Operating Officer Customers, Airbus Commercial Aircraft.
Emirates' decision to place 20 firm orders and 16 options comes close on the heels of a grim admission made by the European manufacturer that it might have to end production of the double-decker A380 superjumbo jet, having booked no new orders for the plane in the past two years. "Quite honestly, if we can't work out a deal with Emirates, I think there is no choice but to shut down the programme," Leahy said a few days ago.
The European aerospace group had been banking on another big order in November from its main client Emirates, but the Dubai-based airline, which has already taken delivery of 100 A380 jumbos, decided instead to buy 40 of Boeing's Dreamliners
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, said Emirates truly represents Dubai's spirit of growth, innovation and resilience. "It also epitomises the city's increasing role in connecting the world in terms of people, capital and information flows. This deal reflects Emirates' confidence in shaping the future, and its commitment to advancing Dubai's vision to grow further as a world-class destination and aviation hub."
"We've made no secret of the fact that the A380 has been a success for Emirates. Our customers love it, and we've been able to deploy it on different missions across our network, giving us flexibility in terms of range and passenger mix," said Sheikh Ahmed.
"Some of the new A380s we've just ordered will be used as fleet replacements. This order will provide stability to the A380 production line. We will continue to work closely with Airbus to further enhance the aircraft and onboard product, so as to offer our passengers the best possible experience. The beauty of this aircraft is that the technology and real estate on board gives us plenty of room to do something different with the interiors," said Sheikh Ahmed.
Leahy said A380 aircraft has contributed enormously to Emirates' growth and success since 2008. "We are delighted that it will continue to do so. This new order underscores Airbus' commitment to produce the A380 at least for another ten years. I'm personally convinced more orders will follow Emirates' example and that this great aircraft will be built well into the 2030s." To date, Airbus has delivered a total of 222 A380s to 13 airlines.
Saj Ahmad, chief analyst at London-based StrategicAero Research, said Airbus is absolutely desperate to bolster the ailing A380 backlog.
"While this won't save the A380 programme given the weak backlog and orders that'll never get delivered, Airbus' reliance on, and desperation to secure a new Emirates deal is one that the airline probably couldn't turn down," he added.
"These planned A380s will come in from 2020 infers that they will likely replace some of the vintage and older 2008 airplanes which Emirates currently operates," Ahmad told Khaleej Times.
Following delivery of its first A380 in July 2008, Emirates took its 100th A380 on the 3rd November 2017 in Hamburg.
The additional Airbus A380s will be delivered to Emirates from 2020 onwards. Together with the airline's 101-strong A380 fleet and its current order backlog for 41 aircraft, this new order brings Emirates' commitment to the A380 programme to 178 aircraft, worth over $60 billion.
Emirates, the largest Airbus A380 operator on the planet with 101 A380s in service, operates a fleet of 269 all wide-bodied aircraft across its global network of 157 destinations in 84 countries.
- issacjohn@khaleejtimes.com
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