Emirates wants Airbus A380 production guarantee before placing new orders

Emirates wants Airbus A380 production guarantee before placing new orders


Emirates has not ruled out buying more Airbus A380s in future but the aircraft maker would have to guarantee it could keep its production line going, Emirates’ chief executive told CNBC Monday.

Emirates was expected to announce a deal to buy another tranche of Airbus A380s on Sunday at the Dubai Airshow. But the airline issued a surprise by swooping for 40 Boeing 787-10 Dreamliners from Airbus’ main rival in a provisional order worth $15.1 billion.

The Gulf’s largest carrier says deliveries will begin in 2022, bringing its total commitment with Boeing to over 200 units.

Emirates Chief Executive Tim Clark said Monday that he wouldn’t rule out buying more Airbus A380s in future, however, telling CNBC that he would tell Airbus to “keep the (production) line going.”

“We need copper-bottom (trustworthy) undertakings so if we do order some more that they will not cancel the program, so getting them across the line with regard to the commitments they would have to make to support the line over the next ten, fifteen years is vital to us,” he said.

“The ownership, my bosses here, will not sanction any further acquisitions unless they know the line is going to be continued and they have a full understanding of what would happen if there was a cancellation,” he added.

Clark said Airbus needed to revitalize its sales efforts amid a more uncertain global economy and geopolitical landscape, saying that management boards were far more risk averse now, worried about their commercial teams being able to fill aircraft.

Emirates Chairman, Sheikh Ahmed bin Saeed al-Maktoum, said on Sunday that the carrier had chosen the latest version of Boeing’s mid-sized wide-body jet after comparing it with the Airbus A350, according to Reuters.



Source : cnbc.com

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