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Mon, Nov 11, 2013

Analysts: Future Of A380 In Doubt

Cites Cancelations, Lack Of New Orders

Aviation market analysts say that the future of the signature Airbus A380 is in question given the cancelation of three orders this year coupled with an empty order book for 2013.

The French news service AFP reports that Oddo Securities analyst Yan Derocles said that the European planemaker "must quickly convince existing customers to bring forward their delivery dates" in order to balance its books for 2015.

Airbus insists that a 20-plane order signed in June by leasing company Doric will bring it to its 25 airplane target for 2013, though that order has not been finalized. Doric CEO Mark Lapidus said earlier this week that he expects the order to be firmed up before the end of the year.

Teal Group analyst Richard Aboulafia called the A380 "a very bad idea, one of the worst self-inflected wounds in aerospace history." He said airlines are moving more towards range and efficiency rather than massive capacity on a single airplane. The A380 can carry as many as 525 passengers.

He also said the airplane's four-engine configuration and weight were detrimental to its future sales.

Still, with the number of passengers flying aboard airliners forecast to double in the next 20 years, Airbus says it remains confident that the A380 will be viable long-term.

(Doric A380 image provided by Airbus)

FMI: www.airbus.com

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