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Emirates Airline

Emirates throws Airbus A380 a lifeline with $16 billion deal

Emirates airline announced Thursday that it has reached a deal to buy 20 Airbus A380s with an option for 16 more.

The deal is a breakthrough for Airbus, whose double-decked A380 faced an uncertain future amid weak sales. It was just last week that Airbus sales chief John Leahy acknowledged the jetmaker could end production of the A380 if it did not soon win new orders. 

Now, with Thursday's Emirates deal, the A380’s future appears secure for a bit longer. 

ARCHIVESEmirates shows off its Airbus A380 superjumbo at Washington Dulles

“This new order underscores Airbus’ commitment to produce the A380 at least for another ten years,” Airbus’ Leahy said in a statement accompanying Thursday’s announcement. 

Even Emirates – which already has 101 A380s in its fleet and 41 more on order – seemed to be aware of the significance of its order, worth about $16 billion at list prices. 

“This order will provide stability to the A380 production line,” Emirates CEO Sheikh Ahmed bin Saeed Al Maktoum added in the statement, saying the carrier would “continue to work closely with Airbus to further enhance the aircraft and onboard product.”

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Analysts described the order as positive for both Airbus and Emirates. 

"It's positive news for both sides," airline analyst John Strickland of JLS Consulting said to The Associated Press. "The A380 is critical to Emirates' hub-and-growth strategy and equally the airline is key to Airbus' continuation of the program. It will be a great relief to Airbus to have secured this order, but they have to work aggressively to secure orders from other airlines too now."
 
Emirates is by far the largest customer for Airbus’ A380. The airline also is the world’s top customer for Boeing’s 777 widebody. Combined, the A380 and 777 are the backbone of Emirates' fleet, allowing the fast-growing carrier to offer a robust long-haul schedule from its hub in Dubai. 

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But it’s perhaps the A380 that is most singularly identified with Emirates. The airline has outfitted its “superjumbo” jets with swanky premium cabins that include showers for first-class passengers. Emirates’ first-class seats – which include a sliding door that can wall them off into private “suites” – helped ignite a war among the world’s top carriers for the most luxurious airline seats.

Emirates' A380s seat 489 to 615 passengers, depending on the seating configuration.

Emirates has accounted for nearly half of Airbus' orders for the A380. And as Airbus worked though its production backlog of the plane, it had become unclear whether the European jetmaker would win new orders needed to keep the line going. 

At one point, even Emirates appeared to be reluctant to order more, reportedly pushing Airbus for updates to the aircraft that would make it more efficient to operate. Those concerns have been put to rest, at least for now. 

“I’m personally convinced more orders will follow Emirates’ example and that this great aircraft will be built well into the 2030s,” said Airbus’ Leahy. 

Airbus' A380 has a list price of $445.6 million, but airlines and manufacturers typically negotiate lower prices on such deals. 

Contributing: The Associated Press

TODAY IN THE SKYEmirates airline shows off its Airbus A380 in Orlando


 

Emirates' Airbus A380 "superjumbo" is seen after landing at Washington Dulles International Airport on Feb. 23, 2016.
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