Sources Say Company Is Drafting Contingency Plans For Phaseout Of The Super-Jumbo Airliner

The future of the A380 Super-Jumbo airliner appears to rest with Emirates, which is hedging on an order it had earlier placed for the airplane.

Reuters cites three sources familiar with the matter who say that Airbus is drafting a contingency plan to phase out production of the airplane if the deal with Emirates falls through.

Emirates has total orders for 142 of the big gets, but talks for 36 new airplanes recently hit a snag over production schedules at the Dubai Air Show last month. While negotiations have resumed, there is no sign of significant progress between the two sides.

One source said that if there is no deal with Emirates, Airbus will begin the shutting down production of the A380. But the process would be gradual, allowing the planemaker to fill the orders it has on the books, including some from Emirates.

While there is interest from other airlines for the four-engine jet, Airbus is wary of continuing to produce the airplanes without the guarantee of the major order from Emirates. The airline, meanwhile, wants a guarantee that Airbus will continue to produce the airliner for at least a decade to go forward with the deal.

The planemaker currently has 97 unfilled orders for the A380, according to the report. Industry sources say 47 of those are unlikely to be delivered based on airlines intentions and finances.

(Image from file)

FMI: Original Report