Gulf Business

Airbus jumbo A380 jet heading to ‘certain death’ – analyst

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The world’s largest commercial jet, the A380, is heading towards a “certain death”, according to an analyst.

The double-decker has been struggling with lack-lustre sales, forcing Airbus to scale back production.

It received a further jolt late last month after Airbus was forced to postpone the delivery of 12 A380 planes to Dubai-based Emirates Airline over the next two years, following an agreement between Emirates and engine supplier Rolls-Royce.

Six deliveries will be postponed from 2017 to 2018, with another six postponed from 2018 to 2019, the plane manufactur­er said.

“Airbus re-confirms the target to deliver around 12 A380s per year from 2018 as announced earlier in July 2016. Further fixed cost reduction initiative­s will be accelerate­d so the impact on break-even in 2017 is minimal,” the company said in a statement.

The delay damages the ability of Airbus to effectivel­y market the sales of the struggling aeroplane, stated Saj Ahmad, chief analyst at StrategicA­ero Research.

“It also means that the loss making programme will endure a more uncertain future as the backlog shrinks and it is likely now, that in the absence of a newengine platform for it, the A380 is on borrowed time,” he added.

Emirates is the A380’s biggest customer and flies the jet to over 45 destinatio­ns across its network.

Its current fleet includes 89 A380s, with 53 more pending delivery. The airline took delivery of its latest A380 jet – and the first powered by a Rolls-Royce engine – on December 29.

“Yes they will allow it to die because as an engineerin­g product, it is outdated when you consider the advances that the 787, A350 and 777X will bring,” opined Ahmad.

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