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The Emirates airline has announced an order for up to 36 Airbus A380s.

The $16bn (£11.5bn) deal amounts to a reprieve for the A380 after Airbus threatened to stop making the jet if it could not come to a deal with Emirates.

Emirates is the only airline to have put the A380 at the heart of its operations and had been expected to place an order for more of the jets at the Dubai Airshow last November.

However, it then ordered 40 Boeing 787 Dreamliners instead.

Emirates said it had now made a firm order for 20 of the A380, the world's largest passenger airliner, with options to buy a further 16. Deliveries are scheduled to begin in 2020.

Emirates is already the largest customer for the plane, with 101 currently flying and 41 more firm orders previously placed.

On Monday, Airbus sales director John Leahy said the company would have to halt the A380 programme if Emirates did not place another order.

Analysis: Theo Leggett, business correspondent

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This is a vital order for Airbus, which has been struggling to get airlines to buy its troubled superjumbo. It has been forced to slow production right down, from 27 aircraft annually a couple of years ago to 12 this year. It expected to deliver just eight in 2019.

Emirates is far and away the biggest customer for the A380. Without its backing, Airbus would eventually have had to close down the production line in Toulouse altogether. Now the programme has the life support it needs.

Airbus says today's order underscores its commitment to produce the A380 for at least another 10 years. By that time, growth in the aviation market may have recreated a business case for it.

The A380 was designed to carry large numbers of people between heavily congested hub airports, where take-off and landing slots are at a premium. In recent years, it hasn't been needed, because airlines have focused on using smaller, more fuel-efficient aircraft to carry passengers, often on direct routes between secondary airports.

But if the market continues to grow rapidly, airport congestion may well become a serious issue again, particularly in Asia. At that point the A380 could come into its own.

The A380 project was first conceived in the early 1990s as an eventual successor to the Boeing 747, with development work beginning in earnest in 1993.

The plane has twin decks of seats, and is designed to incorporate amenities such as bars, lounges, beauty salons and duty-free shops, according to customer specification.

Before this latest deal, there had been a total of 317 orders for the A380 since its launch in 2007.

It made its debut commercial flight in October 2007 with Singapore Airlines flying from Singapore to Sydney.

Qantas took orders of the plane in 2008, flying the route between Melbourne and Los Angeles. Air France and Lufthansa have also flown the Airbus A380, but its largest customer over the years has been Emirates.</s>Jan. 18 (UPI) -- Emirates Airlines agreed Thursday to order up to 36 Airbus A380s -- providing a major boost for the struggling superjumbo program.

The Dubai-based Emirates Airline signed a Memorandum of Understanding with Airbus to purchase 20 A380s with the option for 16 more. Deliveries will start in 2020.

Airbus has delivered 222 of the large double-decker jets since 2007, and has recently signaled that it may need to cease their production.

The $16 billion deal, though, may help Airbus avoid that situation.

"We are still talking to Emirates but quite honestly they are the only one that has the ability in the marketplace to take a minimum of six a year for a period of eight to 10 years," John Leahy, Airbus's top salesperson, said before the sale.

Emirates sees a viable future for the A380s in their fleet.

"We've made no secret of the fact that the A380 has been a success for Emirates," Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of the Emirates Airline and Group, said. "Our customers love it, and we've been able to deploy it on different missions across our network, giving us flexibility in terms of range and passenger mix."

"Some of the new A380s we've just ordered will be used as fleet replacements. This order will provide stability to the A380 production line."

Leahy said the A380s "contributed enormously" to Emirates' growth since 2008.

"This new order underscores Airbus' commitment to produce the A380 at least for another ten years," Leahy said. "I'm personally convinced more orders will follow Emirates' example and that this great aircraft will be built well into the 2030s."

According to Airbus, more than 200 million passengers have flown aboard an A380 and the planes have been delivered to 13 airlines.</s>Dubai-based airline Emirates signed a memorandum of understanding to purchase as many as 36 new Airbus SE A380s for a total of $16bn. The deal between Airbus and Emirates, the fourth-largest airline in the world, consisted of 20 firm orders, with an option for an additional 16 aircraft, and would take the Gulf carrier's commitment to the A380 programme up to 178 planes, with a total asset worth of more than $60bn. Shaikh Ahmad Bin Saeed Al Maktoum, chairman and chief executive of Emirates, who ...</s>Dubai airline makes commitment for 20 A380s along with an option for 16 more with deliveries to start in 2020

Emirates Airlines said Thursday it has struck a $16 billion deal to buy 36 Airbus A380 superjumbos just days after the European manufacturer said it would have to halt production without new orders.

The company said it had placed firm orders for 20 of the double-decker aircraft with options for a further 16. Deliveries are scheduled to start in 2020.

Emirates is already the world's biggest customer for the A380 with 101 in its fleet and 41 more firm orders previously placed.

The Dubai-based airline said that with the new order it will have commitments for a total of 178 A380s worth $60 billion.

The deal was expected to be signed during the Dubai Airshow in November but was delayed without any explanation amid reports of tough negotiations.

Instead, Emirates inked a deal to buy 40 Boeing Dreamliners for more than $15 billion.

Airbus's decision in 2007 to pursue the A380, capable of packing in 853 seats, was diametrically opposed to Boeing's bet on the Dreamliner, marketed as a more efficient plane that could be used for both medium and long-distance flights.

But the economics of the A380 have proved daunting, with airlines having to fly every flight at full capacity in order to make a profit.

Airbus warned on Monday that it might have to end production of the A380, having booked no new orders for the plane in two years.

It said it regarded Emirates as the only airline with the capacity to place an order of the size required to keep production going.

"We’ve made no secret of the fact that the A380 has been a success for Emirates," the airline's chairman and CEO Sheikh Ahmed bin Saeed Al-Maktoum said.

"Our customers love it, and we’ve been able to deploy it on different missions across our network, giving us flexibility in terms of range and passenger mix."

Emirates operates a fleet of 269 wide-bodied aircraft and flies to 157 destinations.</s>Dubai, UAE: Emirates has announced a US$ 16 billion (AED 58.7 billion) deal for 36 additional Airbus A380 aircraft, with 20 firm orders and 16 options.

Emirates’ A380 fleet operates both GE and Rolls-Royce engines, and the airline is evaluating engine options for its latest A380 order.

The additional Airbus A380s will be delivered to Emirates from 2020 onwards. Together with the airline’s 101-strong A380 fleet and its current order backlog for 41 aircraft, this new order brings Emirates’ commitment to the A380 programme to 178 aircraft, worth over US$ 60 billion.

“This deal reflects Emirates’ confidence in shaping the future, and its commitment to advancing Dubai’s vision to grow further as a world-class destination and aviation hub,” said His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, said:

His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group signed the memorandum of understanding (MOU) on Thursday with John Leahy, Chief Operating Officer Customers, Airbus Commercial Aircraft at the airline’s headquarters in Dubai.

“We have made no secret of the fact that the A380 has been a success for Emirates. Our customers love it, and we’ve been able to deploy it on different missions across our network, giving us flexibility in terms of range and passenger mix,” Sheikh Ahmed said.

“Some of the new A380s we have just ordered will be used as fleet replacements. This order will provide stability to the A380 production line. We will continue to work closely with Airbus to further enhance the aircraft and onboard product, so as to offer our passengers the best possible experience. The beauty of this aircraft is that the technology and real estate on board gives us plenty of room to do something different with the interiors.”</s>Emirates Airline on Thursday announced a $16 billion deal for up to 36 more Airbus SE (AIR.FR) A380 superjumbos, extending a lifeline to the European plane maker's struggling flagship program that was at risk of production ending had a deal not materialized.

Emirates Airline, the biggest customer for the double-decker A380, and Airbus had been in talks for months about the top-up purchase that brings the Dubai-based carrier's commitment to the world's largest jetliner to up to 178 planes. The two companies were close to signing an agreement in November at the Dubai Air Show, but Emirates walked away from the table wanting firmer commitments to the program from Airbus .

Airbus sales chief John Leahy on Monday warned that "if we can't work out a deal with Emirates, there is no choice but to shut down the program."

"This order will provide stability to the A380 production line," Emirates CEO Sheikh Ahmed bin Saeed Al Maktoum said in a statement. Some of the planes from this order will be used to replace A380s already in service, he said.

Emirates now accounts for more than half of all A380s ordered if it exercises all options, punctuating the Toulouse, France-based plane maker's dependence on the airline.?

Even with the deal, Airbus is reducing output of the A380 amid otherwise slack demand. Airbus produced 15 A380s last year and plans to hand over only 12 this year.

The bleak outlook for the A380 was punctuated late last year when the first of the jets, once operated by Singapore Airlines, was placed in long-term storage after the airline opted not to extend its initial lease period. The carrier is the second biggest A380 customer, having ordered 24.

Air France-KLM SA (AF.FR) and Deutsche Lufthansa AG (LHA.XE) are among other carriers to have cut orders for the plane. Virgin Atlantic Airways Ltd. has never introduced the model despite ordering six and Malaysia Airlines is phasing out its six though it is trying to rent them to others.

For Mr. Leahy, who is retiring from Airbus this year after a career spanning more than 30 years during which has sold more than 15,000 planes, the deal is a final coup. "This new order underscores Airbus's commitment to produce the A380 at least for another ten years, he said. Mr. Leahy said he was "convinced more orders will follow Emirates's example and that this great aircraft will be built well into the 2030s."

Airbus has long promised huge demand for the A380 that costs $445.6 million each at list price, though airlines typically get discounts. The airplane has been popular with passengers, but airlines have been cautious to embrace it, worried about filling the aircraft that can seat more than 600 passengers.

Airbus Chief Operating Officer Fabrice Bregier earlier this week said production could fall as low as 6 planes a year. The company once had ambitions to build around 60 a year.

Emirates said it was considering engine options. Rolls-Royce Holdings PLC (RR.LN) and the joint venture of General Electric Co. (GE) and Pratt & Whitney offer A380 engines.</s>Emirates has agreed to buy up to 36 Airbus A380s in a provisional order that will keep the world’s largest passenger jet in production for a further 10 years.

The Memorandum of Understanding Emirates signed with Airbus is for 20 A380s and an option for 16 more. The 20 aircraft order is worth just over USD$8.9 billion at 2018 list prices. If the options are converted, the deal would be worth $16 billion.

“We’ve made no secret of the fact that the A380 has been a success for Emirates. Our customers love it, and we’ve been able to deploy it on different missions across our network, giving us flexibility in terms of range and passenger mix,” the airline’s chief executive Ahmed bin Saeed Al Maktoum said.

Emirates will use part of the new order for expansion and part to replace older aircraft. Deliveries will start in 2020.

The Dubai-based airline has not selected an engine manufacturer yet, but has both Engine Alliance and Rolls-Royce-powered A380s in its fleet.

The order will allow Airbus to keep the A380 production line open until 2018, while it seeks orders from other airlines.

Airbus chief salesman John Leahy said “This new order underscores Airbus’s commitment to produce the A380 at least for another 10 years. I’m personally convinced more orders will follow Emirates’ example and that this great aircraft will be built well into the 2030s.”

Leahy said earlier this week that A380 production would have to be wound down if Emirates failed to order more aircraft. An order was originally expected at the Dubai Airshow in November but that failed to happen and the two companies have been in extended negotiations since then.

Emirates is the largest A380 operator with 142 ordered prior to the new agreement, and 101 currently in service.</s>Aya Batrawy and Jon Gambrell, The Associated Press 

 



DUBAI, United Arab Emirates -- The Middle East's largest airline, Emirates, is throwing Airbus a lifeline for its troubled A380 jumbo jet.

The carrier said Thursday it struck a deal with Airbus to buy 20 of its A380 double-decker jets, with the option to buy 16 more, in a deal worth $16 billion.

Airbus had said earlier this week that if it didn't close the deal with Emirates, it would end production altogether of the jet. The plane has been difficult to sell in part because of its unusually large size, which can be hard to fill and requires bigger runways.

"This new order underscores Airbus' commitment to produce the A380 at least for another ten years," said Airbus chief salesman John Leahy.

The deal removes one thorn in Airbus's side as it struggles with a series of production problems and legal woes. Authorities in Britain and France are investigating alleged fraud and bribery related to Airbus' use of outside consultants in commercial plane sales. Airbus has warned the investigations could lead to "significant penalties."

In an effort to get past these problems, the company in December shook up its top leadership, announcing that its CEO, Tom Enders, will step down in 2019.

The deal with Emirates also caps several weeks of talks and tensions with the airline.

In November, Airbus suffered the embarrassment of believing it had struck a deal to sell A380s to Emirates, only to see Boeing sit on the podium with the airline and sign a $15.1 billion deal.

Dubai-based Emirates already has 101 A380s in its fleet and 41 more on order, making it the largest operator of the jumbo jet. Its fleet relies solely on the Airbus 380 and the Boeing 777.

Emirates Chairman and CEO, Sheikh Ahmed bin Saeed Al Maktoum, said at a signing of the deal in Dubai that the order "will provide stability to the A380 production line."

Emirates, which is owned by the Dubai government in the United Arab Emirates, said the additional A380s will be delivered to the airliner from 2020 onwards and that some of the new A380s will be used as fleet replacements.

An Airbus A380 has a list price of $445.6 million, but airlines and manufacturers often negotiate lower prices. Airbus delivered just 15 of the planes last year, and aims to deliver 12 more this year.

Leahy had said Monday that Emirates is the only airline with the ability to commit to a minimum of six planes a year for a minimum of eight to 10 years, or what is needed to make the Airbus program viable.

"It's positive news for both sides," said airline analyst John Strickland of JLS Consulting. "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."

Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum said the deal reflects Emirates' commitment to advancing "Dubai's vision to grow further as a world-class destination and aviation hub." Dubai's main airport, where Emirates is based, is among the busiest in the world with more than 80 million travellers passing through in 2016.</s>The Middle East's largest airline, Emirates, is purchasing 20 A380 aircraft with the option for 16 more in a deal worth $16 billion, throwing a lifeline to the European-made double-decker jumbo jets.

Emirates said in a statement Thursday the aircraft will be delivered to the Dubai-based airliner from 2020 onwards. Emirates already has 101 A380s in its fleet and 41 more on order. Airbus chief salesman John Leahy said on Monday that if the company couldn't work out a deal with Emirates "there is no choice but to shut down the program."

Emirates says it's the largest Airbus A380 operator in the world and that some of the new jumbo jets ordered will be used as fleet replacements, providing stability to the A380 production line.</s>DUBAI, United Arab Emirates — The Middle East’s largest airline, Emirates, announced Thursday it struck a deal with Airbus to buy 20 A380 aircraft with the option to buy 16 more in a deal worth $16 billion, throwing a lifeline to the European-made double-decker jumbo jets.

The Dubai-based Emirates already has 101 A380s in its fleet and 41 more on order, making it the largest operator of the jumbo jet.

“This new order underscores Airbus’ commitment to produce the A380 at least for another ten years,” said Airbus chief salesman John Leahy.

Emirates Chairman and Chief Executive Sheikh Ahmed bin Saeed Al Maktoum said the order “will provide stability to the A380 production line.”

Al Maktoum and Leahy made the comments in a statement after the deal was signed in Dubai on Thursday morning.

Emirates, which is owned by the Dubai government in the United Arab Emirates, said the additional A380s will be delivered to the airliner from 2020 onwards and that some of the new A380s will be used as fleet replacements.

Leahy had warned only three days earlier that if the company couldn’t work out a deal with Emirates, it would have to shut down the superjumbo’s production line. Airbus has spent years and billions developing the double-decker jumbo jet, even as skeptics questioned whether it could generate enough demand to justify its cost and the bigger runways it requires.

An Airbus A380 has a list price of $445.6 million, but airlines and manufacturers often negotiate lower prices.

Airbus delivered just 15 of the planes last year, and aims to deliver 12 more this year.

Leahy told reporters Monday that Emirates is the only airline with the ability to commit to a minimum of six planes a year for a minimum of eight to 10 years, or what is needed to make the Airbus program viable.

“It’s positive news for both sides,” airline analyst John Strickland of JLS Consulting said. “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.”

Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum said the deal reflects Emirates’ commitment to advancing “Dubai’s vision to grow further as a world-class destination and aviation hub.” Dubai’s main airport, where Emirates is based, is among the busiest in the world with more than 80 million travelers passing through in 2016.

Airbus tweeted news of the deal, saying it was “glad to announce” Emirates’ commitment to the A380.

At Dubai’s biennial Air Show in November, Airbus suffered an embarrassment when it was scheduled to announce it had a struck a deal with Emirates for its A380, only to see Boeing sit on the podium with the airline and sign a $15.1 billion deal.

Emirates’ fleet relies solely on the Airbus 380 and the Boeing 777 for its flights.
The Emirates airline announces an order for up to 36 Airbus A380s. Emirates is already the aircraft's largest operator, with a fleet of over 100.