Airbus will stop the production of the largest A380 aircraft. A falling demand has become the trivial reason of the decision. The company has been reducing the production of the aircraft for some time; its staff is being cut too.
Airbus reports that Emirates, the largest A380 customer, has reduced purchases. Instead of 73-meter giants, more economical A330neo and A350 are in greater demand.
According to Tom Enders, CEO at Airbus, the company has no orders for these aircraft, which means it doesn’t make sense to maintain the production. Deliveries of A380 aircraft will end in 2021.
Within 3 years, about 3.5 thousand workers employed in the assembly of A380, will be got fired or transferred to other duties.
A380 is the largest passenger aircraft in the world. It is designed for 3 classes of passengers and can accommodate more than five hundred people. If it is fully equipped for the economy class, it will be possible to fit more than 850 passengers in its cabin. The cost of such a liner is about 400 million US dollars. Different companies can agree on discounts, so in fact the price may be slightly lower.
At the time of high demand, the company used to produce 30 aircraft per year. Last year, Airbus produced only 12 of the model A380. American companies have never ordered this aircraft, and European carriers have reduced their orders in recent years.
Despite the fact that such aircraft were very popular among passengers, primarily because they were spacious, the companies found it difficult to fill airliners with passengers; what is more, it was much more expensive to maintain the aircraft of this model than others.
Boeing 747, another model of large airliners, is in a state of crisis too. It is bought mostly for carrying freight. The American manufacturer has already noted that it can close the production of this aircraft in 2022.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade