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Wed, Nov 22, 2017

Airbus A380 Deal With Emirates In Limbo

Airline Backed Out Of Signing Ceremony Shortly Before It Was To Occur

While Airbus executives were waiting in the wings to sign a $16 billion dollar deal with Emirates Airline for 36 A380 airliners at the Dubai Air Show last week, the carrier told the planemaker that the deal would not be signed that day.

Reuters reports that the delay in the deal places the future of the world's largest jetliner in question. Boeing, meanwhile, walked away from the airshow with a $15 billion deal with the airline.

Emirates president Tim Clark delivered a message from the Dubai Government the day after the deal was to be announced that it wanted a guarantee from Airbus that it would continue to produce the A380 for 10 years before the airline would agree to place the order. Airbus CEO Tom Enders called the ultimatum "unhelpful."

Airbus Sales head John Leahy is set to retire in January. The company is also facing questions about compliance from both Britain and France.

A person familiar with the negotiations said that the guarantee is "not something any company can easily do," and the board will have to give careful consideration to the guarantee, which is beyond the scope of a normal contract for a specific aircraft.

(Image from file)

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