European aviation giant Airbus announced that it will stop making its superjumbo A380 in 2021 after struggling to sell the world’s biggest passenger jet. Because of this decision thousands of jobs in Germany and France are at stake.
European aircraft manufacturer Airbus on Thursday announced it will end the production of the A380 double-decker passenger jet by 2021.
The Franco-German company had hoped the superjumbo would challenge Boeing’s 747 and revolutionize air travel in the 21st century.
What the company said:
Key client Emirates had informed Airbus it was cutting orders from 162 to 123 aircraft;
That left the company with no substantial A380 backlog and no basis to sustain production.
Shutdown costs are estimated at €463 million ($521 million) with a billion euros of European government loans forgiven
It will still produce 17 A380s including 14 for Emirates and 3 for Japanese airline ANA
Emirates Airlines which is a Dubai based airline company is the biggest customer of A380 double-decker passenger jet. It built its global brand around the model. The A380 will remain a central part of the Emirates fleet into the 2030s, the airline said.
“Emirates has been a staunch supporter of the A380 since its inception,” said Emirates Chairman Sheikh Ahmed bin Saeed al-Maktoum. “While we are disappointed to have to give up our order, and sad that the program could not be sustained, we accept that this is the reality of the situation.” Emirates has ordered 40 A330-900neo jets and 30 A350-900 aircraft instead.
Airbus CEO Tom Enders called the superjumbo an “outstanding technical and industrial achievement,” adding that the announcement was “painful for us and A380 communities around the world.”