3,500 jobs at risk as Airbus ends A380 superjumbo

Europe’s Airbus is scrapping production of the A380 superjumbo, with lacklustre sales forcing it to abandon a dream of dominating the skies with a 21st century cruiseliner.

3,500 jobs at risk as Airbus ends A380 superjumbo

Europe’s Airbus is scrapping production of the A380 superjumbo, with lacklustre sales forcing it to abandon a dream of dominating the skies with a 21st century cruiseliner.

The world’s largest airliner, with two decks of spacious cabins and room for 544 people in standard layout, was designed to challenge Boeing’s legendary 747 but failed to take hold as airlines backed a new generation of smaller, more nimble jets.

Confirming a shake-up, it said the last A380 would be delivered in 2021.

The move comes after Emirates — the largest A380 customer — was forced to reduce its orders for the iconic superjumbo after an engine dispute and a broader fleet review, opting instead to order a total of 70 of the smaller A350 and A330neo.

Without the anticipated level of demand from the Gulf heavyweight, Airbus said its assembly lines would dry up.

“This was a joint decision. We cannot run after illusions and we have to take the only sensible decision and stop this programme,” said Airbus chief executive Tom Enders.

Airbus said it would enter talks with unions in coming weeks over the 3,000-3,500 jobs potentially affected.

Mr Enders said the company could not guarantee all would keep their jobs.

The jobs at risk are mainly in France and Germany but there could also be an impact in Spain and the UK.

Airbus took a charge of €463m for shutdown costs but is expected to be forgiven some €1bn of outstanding European government loans under a funding system that stands at the centre of a trade dispute with Boeing.

Airbus will produce 17 more of the planes, including 14 for Emirates and three for Japanese airline ANA.

Emirates, which had built its global brand around the A380 and Boeing 777 and which has 100 of the Airbus superjumbos in its fleet, said it was disappointed by the closure.

Sales of the industry’s largest four-engined jets have fallen due to improvements in lighter twin-engined alternatives, such as the Boeing 787 and 777 or Airbus’s own A350.

“What we are seeing here is the end of the large four-engined aircraft,” said Mr Enders.

There has been speculation that we were 10 years too early; I think it is clear that we were 10 years too late.

Nonetheless, Airbus delivered better-than-expected results.

Its shares jumped more than 5% at one stage to levels just shy of its record set last July.

Reuters

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