A380 will take off once again, says Airbus

Bianca Boorer Sharecast | 11 Jan, 2017 17:08 - Updated: 17:08 | | |

  • 74.23
  • -1.03%-0.77
  • Max: 74.87
  • Min: 73.75
  • Volume: 2,041,707
  • MM 200 : n/a
17:45 28/04/17
  • 5,267.33
  • -0.08%-4.37
  • Max: 5,287.85
  • Min: 5,265.36
  • Volume: 0
  • MM 200 : n/a
17:45 28/04/17
  • 3,559.59
  • -0.10%-3.70
  • Max: 3,571.63
  • Min: 3,553.81
  • Volume: 0
  • MM 200 : n/a
00:00 29/04/17

Airbus has reaffirmed their commitment to the A380 “superjumbo” despite slow sales as it announced record annual deliveries of its family of aircraft, according to a report by the Telegraph.

The double-decker A380 airliner has received 319 orders in total, but the lack of new customers over the past few years has led to rumours it may be discontinued.

The company announced at Farnborough Airshow last year that it would cut production to just 12 a year, which is less than half of the 27 produced in 2016.

President of Airbus Fabrice Bregier however believes Airbus’s time will come, quoting that 10% of passengers going through London Heathrow are on the A380.

"What I have to accept is the very slow commercial performance we have with the A380. But there is a future with this aircraft: more airports will become like Heathrow with congestion and this aircraft will have a bigger market share,” said Bregier.

Sales chief John Leahy agreed, saying: “There is no doubt the market is soft at the moment but it is a matter of timing - and I believe it will be sooner rather than later.

“We have to shift to bigger aircraft and all economic indicators point to that. Air traffic doubles every 15 years and there is no more room - I can’t comprehend how the market will be satisfied without bigger aircraft.”

He argued that bigger aircraft is the only viable response to rising passenger numbers.

“China might be able to build new mega airports but you just can’t build another Heathrow or Charles De Gaulle or LAX [Los Angeles International Airport]."

Bregier said the company would break even at the lower production rate and hopes the rate will increase with additional evolutions to the A380 family.

This could mean plans are currently taking place for an even bigger version of the A380.

In 2016, Airbus handed over 688 airliners to customers, up 8% on the 635 recorded in 2015. However, the figure is behind rival Boeing who delivered 748 jetliners last year.

Airbus has also had problems with suppliers failing to deliver components on time and of the right quality in the past. Bregier said the programmes had largely been “de-risked” predicting deliveries to go above 700 in 2017.

Both Boeing and Airbus are keen to break into the Iran market now that sanctions have been lifted after being closed for almost 40 years.

President elect Donald Trump called the agreement between Boeing and Iran “a disgrace, an embarrassment ... one of the worst deals I’ve ever seen negotiated in my entire life”.

Chairman of IranAir Farhad Parvaresh on the other hand called the Airbus deal a “new, magnificent chapter and a bright day for the EU and Iran… that will generate peace and friendship”.

Airbus rose 0.61% to €65.56 at the close on Wednesday.

More news

17:49 Sunday newspaper round-up: Brussels row, May VAT pledge, Ocado, house prices, RBS

Brexit negotiations began with a blazing row yesterday as Brussels flatly rejected Theresa May’s negotiating position and accused the prime minister of living in a “parallel reality”. The other 27 EU member states took just four minutes to agree a hardline stance on Brexit at a summit meeting in Brussels before Jean-Claude Juncker, the head of the European Commission, and Michel Barnier, the chief European Union Brexit negotiator, rounded on the prime minister. - Sunday Times

28 Apr S&P reaffirms AA rating on UK, outlook clouded by Brexit

Standard&Poor's reaffirmed its rating on the United Kingdom's long-term sovereign debt but warned of the potential impact on the economy from the uncertainty around the Brexit negotiations and their eventual outcome.

28 Apr FX round-up: Sterling nonchalant after UK Q1 growth disappoints

Sterling made steady gains on most key cross on Friday, appearing nonchalant in its reaction to disappointing UK economic growth data out mid-morning.

28 Apr Europe close: Weak US, UK GDP weigh on shareson the continent

European stocks ended the day on a mixed note after weak readings on UK and US GDP dragged many indices into the red at the end of the month.

28 Apr Laird off to solid start, but second half remains key

Electronic component maker Laird reported strong sales growth in the first quarter of 2017 after a difficult year.

28 Apr General Motors truck and SUV sales drive record earnings

Growth at General Motors accelerated past analyst forecasts with a record first-quarter set of earnings.

28 Apr RBS and Lloyds Bank customers hit by online glitch on payday

Royal Bank of Scotland and Lloyds Banking Group customers were prevented from accessing money in their accounts due to a technical glitch ahead of the bank holiday weekend.

28 Apr Kennedy Wilson confirms quarterly dividend, new office leases

Kennedy Wilson Europe Real Estate announced it will pay an interim quarterly dividend of 12.0p per share, while also reporting strong leasing momentum across key investments in Greater London and Dublin.

28 Apr Time spins backwards on decision not to sell business

Time Inc stock reversed recent gains after the board decided not to sell the publishing business as it was being "reinvigorated" under a new strategy.

28 Apr Morgan Stanley downgrades Berendsen on competition concerns

Berendsen not only needs to invest in property, plant and equipment but is facing increasing competition in the UK, warned Morgan Stanley as it downgraded the stock on Friday.