Demand For The Super-Jumbo Jet Continues To Decline

With demand for very large, four-engine passenger jets continuing to decline, Airbus is reportedly considering a production cut for its A380 line to six per year to try to make the airplane commercially viable through the end of the decade.

Fox Business reports that the European planemaker had previously announced a production cut to 12 aircraft in 2018 and eight in 2019. At one time, Airbus made 30 of the super-jumbo jets per year.

The production schedule seems to hinge on a perspective order for 36 A380s from Emirates, which had planned to sign the firm order at the Dubai Air Show, but then left Airbus executives at the altar on the day the signing was to take place. The carrier now says it wants a commitment from Airbus that it will produce the airplane for the next decade.

Airbus has reportedly already told some suppliers that it will be cutting production to six airplanes per year. The planemaker broke even on the A380 for the first time in its 10-year history in 2015, according to the report. In that year, it delivered 27 of the airplanes. The company believes it can break even on a production rate of as few as 20 per year, and COO Fabrice Bregier has said he is looking to further reduce the break-even level in an effort to sustain an lower production rate.

(Image from file)

FMI: Original Report