Back in February 2018, Emirates threw a lifeline for Airbus A380 line by singing a $16 billion deal for up to 36 aircraft of the type. But recent reports on stalling engine negotiations are raising questions of the superjumbo survival prospers again.
Quoting sources familiar with the matter, Bloomberg reported on October 8, 2018, that Emirates has reached a deadlock in talks with Rolls-Royce on price and fuel burn on engines that are to power its future superjumbos. According to the publication, the Gulf carrier has already missed engine selection deadline, thus likely delaying first delivery in 2020.
Stalling engine negotiations could potentially threaten the deal altogether. And what would happen if Emirates decides to pull out we can already suspect.
Airbus and Emirates were expected to steal the headlines at the Dubai Airshow 2017 with the announcement of a $16-billion-worth deal for A380s. But Emirates opted for a similarly valued deal for 40 Boeing Dreamliners instead, leaving the continuity of Airbus superjumbo line in a precarious position.
What followed, was summarized quite bluntly by Airbus commercial aircraft salesman John Leahy, who said the A380 program would be shut down unless Emirates puts more orders for it. And Emirates did, singing a commitment for 20 A380s and 16 as an option in February 2018.
Following delivery of its first A380 in July 2008, Emirates took its 100th A380 on November 3, 2017 in Hamburg, firmly securing Emirates status as the biggest operator of A380 - and the one on which superjumbo’s survival is dependent on. Emirates’ order for 20 A380s (six of which were cancelled in September 2018, according to Airbus orderbook) is the only superjumbo order in 2018.