Airbus has clinched the deal that will allow it to continue production of its A380 superjumbo for another decade after major customer Emirates announced Thursday it would buy up to 36 of the double-decker planes.
Emirates chief executive Sheikh Ahmed bin Saeed Al Maktoum signed the memorandum of understanding Thursday with outgoing Airbus chief operating officer customers John Leahy.
The deal, valued at $US16 billion at list prices, is for 20 firm orders and 16 options to be delivered from 2020.
Emirates is the wold’s biggest operator of the A380 and has already taken delivery of 101 planes.
Including its current backlog of 41 aircraft, the new order brought its total commitment to the A380 program to 178 aircraft worth more than $US60 billion.
The airline, which uses both GE and Rolls-Royce power plants on its A380s, said it was still evaluating engine options for its latest order.
“We’ve made no secret of the fact that the A380 has been a success for Emirate,’’ Sheik Ahmed said in announcing the deal.
“Our customers love it, and we’ve been able to deploy it on different missions across our network, giving us flexibility in terms of range and passenger mix.
“Some of the new A380s we’ve just ordered will be used as fleet replacements. This order will provide stability to the A380 production line. We will continue to work closely with Airbus to further enhance the aircraft and onboard product, so as to offer our passengers the best possible experience.”
Airbus had been expected to announce the deal for 36 A380s at last year’s Dubai Airshow but officials left empty handed after Emirates sought a guarantee that production would continue for the next 10 years.
Leahy warned as recently as this week that Airbus shut down the A380 program if it failed to sign the deal with Emirates.
He told a media briefing that Emirates was the only airline that currently had the ability to six aircraft for a period of eight to 10 years.
But he also foreshadowed the announcement of three widebody deals in the next 30 to 60 days without saying whether one of them would be the Emirates A380 order.
Airbus has been reducing the rate of A380s and expects to deliver 12 in 2018 and eight in 2019.
Airbus Commercial Aircraft president Fabrice Bregier told the same media briefing the manufacturer had determined it could keep production going with as few as six aircraft a year.
The manufacturer still maintains the A380 will see a renaissance despite the overwhelming popularity among airlines of newer, fuel efficient twin-engine planes.
Leahy said yesterday: “This aircraft has contributed enormously to Emirates’ growth and success since 2008 and we are delighted that it will continue to do so.
“This new order underscores Airbus’ commitment to produce the A380 at least for another ten years.
“I’m personally convinced more orders will follow Emirates’ example and that this great aircraft will be built well into the 2030s.”
