Sections

ideals
Business Essentials for Professionals

Doubts Over Future Of Airbus’s A380s Forces Qantas To Cancel Order


02/07/2019


Doubts Over Future Of Airbus’s A380s Forces Qantas To Cancel Order
Worried over the reports that put the future of the four-engined A380 aircraft from Airbus, Australia's Qantas Airways announced this week that they are going to cancel their order for eight of the aircraft from the company. The order for the super jumbo jets has been a longstanding one. 
 
This decision by the airlines would cancel the order which was p[laced way back in 2006 and Airbus would have to remove them from their order book.
 
On the other hand, there have been reports that switching some orders for the super jumbo to the smaller A350 is also being contemplated by the Emirates Airlines of the United Arab Emirates. This is a series of decision that is being closely followed and analysed by Airbus and could also result in the air craft maker closing down the facilities that manufacture the A380s much sooner than the company had anticipated, according to reports published in the media quoting sources with knowledge of the matter.
 
According to an official statement from a Qantas spokesman as reported in the media, the Australian airline had taken the decision after it had held detailed discussions with the plane maker over the fate of the future of the eight A380s.
 
"These aircraft have not been part of the airline's fleet and network plans for some time," the Qantas spokesman reportedly told the media.
 
Currently there are 12 A380s in the fleet of aircraft of Qantas and according to the reports quoting the spokesman, the airline would start with the task of redoing and refurbishing the cabins by the middle of this year. The company spokesman also confirmed that the A380s that are currently with the airline would continue to be in service "well into the future". The aircraft maker has also agreed to the "contract amendment" announced by Qantas, confirmed an Airbus spokesman according to reports in the media.
 
"This change will be reflected in our end January order and delivery tables," the Airbus spokesman reportedly told the media.
 
Nothing was however said about the terms of the cancellation between the two companies by neither of the companies. 
 
The decision of cancellation from Qantas comes after the Hong Kong Airlines also cancelled a long standing order which had been viewed as being doubtful for 10 of the aircraft last month. Airbus removed he orders from its order book at the end-December and the delivery tables and schedules were reset after negotiations with the airlines.
 
It is important for Airbus to lower the prices for its A380 if the aircraft maker wanted to sell more of them, said the CEO of British Airways parent IAG, Willie Walsh, last week.
 
The list price for the A380 is about US$445.6 million even though the company does offer significant discounts to purchasing airlines.
 
(Source:www.channelnewsasia.com)


In the same section
< >

Thursday, February 14th 2019 - 18:59 Airbus To Stop Manufacturing A380 Superjumbo From 2021