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Emirates deal critical to long-term future of Airbus A380 program

Unless Airbus and Emirates can come to an agreement over the guaranteed manufacture and supply of the A380 ‘superjumbo’, it is likely that the Toulouse-based plane manufacturer will cease the aircraft’s production. Currently, Emirates is the principal operator of the aircraft, with just over 100 in operation, and another 40-plus on order.

Last November, Airbus anticipated the Gulf carrier would firm up on an order for an additional 36 A380s, but this did not happen. A virtual Catch 22 situation has arisen where Emirates are reluctant to sign any further firm orders for the jet unless Airbus can guarantee delivery of between six and eight units a year, for the next eight to ten years. Airbus in in the position that, at present, it cannot guarantee the continuation of production without a long-term deal in place, ideally with Emirates.

Airbus’ outgoing chief salesman John Leahy told reporters via web cast Today (Monday) that: “Quite honestly…if we can’t work out a deal with Emirates, there is no choice but to shut down the program,” adding that Emirates are “probably the only ones in the marketplace with the ability.”

Leahy was also optimistic in commenting: “But I’m hopeful we can work out a deal with Emirates and then other airlines can add on top.”

In an effort to target the burgeoning Chinese market, Airbus officials were in China on a trade visit and were said to be testing China as a potential buyer of A380s, offering China a production role on the A380 if Chinese airlines order the jet, according to media reports.

“There are clearly other potential customers beyond Emirates,” Fabrice Brégier, Airbus COO said, seeing the Dubai flag-carrying airline as still “key for the long-term future of [the A380] program.”

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