Thu. Apr 18th, 2019

Airbus will stop manufacturing its A380 giant aircraft in 2021 due to lack of orders

Airbus will stop manufacturing its A380 giant aircraft in 2021 due to lack of orders


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ParisUpdated:

The European group Airbus announced this Thursday that will stop manufacturing its A380 giant aircraft in 2021 after its main customer of this device, Emirates, has decided to modify part of their orders to replace them with the A330-900 and A350-900 models, which seem more efficient.

Emirates, which according to the orders in force until now should have received a total of 162 A380 aircraft, finally he will only keep 123 and, in return, has signed a new contract with Airbus for 40 units of the A330-900 and 30 units of the A350-900.

In a statement, Airbus CEO Tom Enders explained that "as a result of that decision, we do not have a substantial A380 order book and, therefore, there is no basis to support the production of the A380, despite all the sales efforts we have made with other airlines in recent years ».

"This leads to the finalization of deliveries of the A380 in 2021," concluded the CEO of the European group, which managed last year increase its profit by 29% to 3,054 million of euros, in spite of the financial ballast that one more exercise supposed to him the program of the airplane of military transport A400M.

These novelties of the A380 program, a device with the capacity to More than 500 passengers that Airbus launched with a view to the saturation problems of the airports of the great world metropolises, have a negative impact of 463 million euros in the operating net result (Ebit) of 2018 of the company, although at the same time they will suppose 177 million euros in the line of other financial results.

Unparalleled delivery volume

Airbus, in any case, achieved a record return last year thanks to a volume of deliveries unparalleled in its history (especially 800 commercial aircraft) and your council will propose to the board the distribution of a record dividend of 1.65 euros per share, 10% more.

That despite the nth provision that had to fit into your accounts for the A400M which is assembled in Seville, this time for 436 million euros. This additional charge, resulting from an update of the contract estimate with the countries that launched the A400M, reflects mainly the result of the negotiations with these countries, as well as new calculations on the possibilities of exporting it, the increase in prices and the increase of some costs, Airbus said Thursday in a statement.

The European aeronautics and defense giant acknowledged that even fitting this new negative impact on their accounts, «There are still risks».

Risks on "the development of technical capabilities and associated costs, in the achievement of sufficient export orders on time, as well as in terms of operational reliability of the aircraft -especially on the engines- and in the reduction of costs with according to the revised baseline ».

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