Sat. Feb 23rd, 2019

Airbus will stop manufacturing the giant A380 and threatens up to 3,500 jobs in Europe | Economy

Airbus will stop manufacturing the giant A380 and threatens up to 3,500 jobs in Europe | Economy



The European aerospace manufacturer Airbus has announced that it will stop manufacturing its giant A380 aircraft in 2021 after the main customer of this device, the Emirates airline, have decided to modify part of their orders to replace them with models A330-900 and A350-900, which seem more efficient. Given the lack of demand for this device, the aviation giant has decided to stop manufacturing it, which may affect between 3,000 and 3,500 workers in Spain, Germany, the United Kingdom and France, the countries where parts of that aircraft are manufactured, According to sources of the company, without quantifying at the moment how many jobs are left in the air in each country.

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In a relevant fact sent to the CNMV, Airbus points out that in the coming weeks it will initiate talks with social agents "in relation to between 3,000 and 3,500 jobs that could potentially be affected during the next three years". However, he points out that the increase in production of the smaller A320 as well as a new order from Emirates will compensate for the abandonment of the A380 and "will offer a significant number of opportunities for internal mobility".

Airbus has an important production hub in and around Madrid. There are several work centers in Barajas; in Getafe, where, among other activities, we work on the A380; and in Illescas (Toledo). According to the company's website, 6,900 people work on this axis.

The model's demand was low. And Emirates, which in accordance with the orders in force until now should have received 162 A380 airplanes in total, finally it will only keep 123 and, in exchange, has signed a new contract with Airbus for 40 units of the A330-900 and 30 of the A350 -900 For the next two years, Emirates will receive its last 14 A380 aircraft.

"As a result of this decision, we do not have a substantial order book of the A380 and, therefore, there is no basis to support production," stressed Airbus CEO Tom Enders, who will leave office next April 10th. "We have to be realistic," he said, noting that the company has put "a lot of effort" and "many resources" in this program. "This brings us to the completion of deliveries of the A380 in 2021," he concluded.

A giant plane for large airports

Airbus launched the A380 program and the first flight of this giant aircraft was held in 2005. It was a device with capacity for more than 500 passengers that Airbus launched with a view to the saturation problems of the airports of the great world metropolises, they have an impact negative of 463 million euros in the net operating result (Ebit) of 2018 of the company, although at the same time they will represent 177 million euros in the line of other financial results.

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 its board will propose to the board the distribution of a record dividend of 1.65 euros per action, 10% more.

That despite the umpteenth provision that had to fit into their accounts for the A400M that 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 with this new negative impact on its 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 the 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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