One Expert Sees It As An Airplane With No Mission

An analyst for Gerson Lehrman Group says that the EADS and Airbus should pull the plug on the A380, which EADS CEO Louis Gallois admitted recently is continuing to struggle for market share.

The blog FleetBuzz Editorial reports that, in the 10 years of the A380's existence, its production costs have doubled and it has not attracted a significant number of buyers despite deep discounts on the airplane. 2010 sales targets have already been missed, and are likely to see another downward revision due to labor issues.

Still, Gallois reportedly says he is "absolutely convinced" that the airplane will be a "success", despite its slugging order book and deferrals from airlines. Following the volcanic ash disruption in Europe last month, which is still causing spotty airport closures, BA is reportedly considering another deferral of the A380's it has on order.

The analyst at GLG says the A380 is continuing to drain resources away from other projects, like the A350XWB, and if Airbus continues to build the super-jumbo it could negatively affect its newer, composite airplane. Contributing to its woes is that the design is approaching its 10th anniversary, and airlines are looking for airplanes with fewer and more efficient engines for the long term. Conversion to a freighter, the analyst suggests, is also nearly impossible due to design considerations, and no freight infrastructure to support the airplane.

In 10 years, EADS and Airbus have just 202 orders for the A380, and GLG reports that two thirds of those have been deferred. Airlines, the analyst says, are looking past the premium passenger and buying airplanes to suit growth in a more price-sensitive segment of the market, which could leave the A380 as an airplane looking for a market to serve.

FMI: www.eads.com. www.glgroup.com