|Emirates is looking forward to cancel some A380 orders Photo: @Tobias_Gudat|
The Dubai-based carrier is planning to cancel five of its last eight A380 orders. The carrier is expecting to take deliveries of three of the superjumbos this year.
Both Emirates and Airbus said that they were in continuous dialogue with each other regarding the remaining A380 orders.
NEW: Gulf airline Emirates is seeking to cancel five of its last eight A380 deliveries with Airbus https://t.co/uRTMw77OS2
— Bloomberg (@business) May 20, 2020
Emirates did not comment on the regular discussions. Airbus also declined to comment, saying talks with customers are confidential, as per the rules of the manufacturer.
Although, Emirates do not want further A380s, Airbus is proposing a deferral of deliveries or payments, rather than cancellation of the remaining aircraft. The remaining planes are already in assembly, according to Bloomberg.
|Emirates do not want additional A380s Photo: Emirates|
Halting Emirates deliveries will leave Airbus with only parts ordered and no significant market to dispose the superjumbos. Indeed, it will be painful for both sides.
The Airbus A380s play a vital role in Emirates global operation. Emirates has a fleet of 115 Airbus A380s. Along with A380s, Emirates has a total of 153 Boeing 777s in its fleet.
|Emirates cancelled its order for 39 A380s last year.|
Last year in February, Emirates thought it had resolved its A380 problem by cutting its final batch of 39 aircraft as Airbus moved to halt the A380 programme after demand has switched to smaller jets.
With production to cease in 2021, the final set of wings was shipped to the A380 assembly line in Toulouse, France from the U.K. three months ago.
If, Emirates eventually cancel the orders, the airline would be charged penalties of up to 257 million dirhams ($70 million) per plane.
|Emirates would be penalized if it cancel the order Photo: Emirates|
Emirates is the World’s largest Airbus A380 operator and has said it expects to keep some of them into its fleet until 2035. However, the corona virus pandemic has forced the airline to rethink about its A380 fleet.
Emirates is considering to permanently retire 40 per cent of its strong fleet of Airbus A380 superjumbos with a final decision likely to be announced in days to come according to sources familiar to the matter
|Emirates is considering to retire some A380s Photo: Emirates|
According to sources, Emirates was focused on reducing the number of leased Airbus A380s in the beginning.
This news comes just a week after Emirates CEO Tim Clark said “the A380 is over” and that the airline would be 20-30% smaller as a result of the corona virus pandemic.
Out of 115 Airbus A380s in its fleet, 59 of them are on lease, which Clark has indicated may be returned after the operating terms expire, but 56 of the A380s are fully owned by the carrier.
|Emirates owns 56 of its A380 fleet Photo: Getty Images|
Finding a new operator for these A380s would be tough as other A380 operators have already begun the retirement of the superjumbos in response to current crisis.
The plane may temporarily serve as a freighter among its operators. Lufthansa Technik has already begun the conversion of an A380 for cargo operations for an undisclosed airline.
|Currently, 114 Emirates A380s are grounded in Dubai Photo: Emirates|
Currently, only one of them is in service, whereas 114 A380s are grounded due to travel restrictions and decrease in demand for air travel due to the COVID-19 pandemic.
Air France-KLM announced the retirement of its entire fleet of Airbus A380s immediately. These aircraft were planned to be retired in 2022 before the corona virus outbreak.
|Air France to retire all A380s immediately. Photo: Air France|
Recently, Lufthansa also announced the retirement of six of its Airbus A380s immediately citing current conditions of the corona virus crisis.
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