Airbus, Emirates finally seal critical A380 deal

Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive of Emirates Airline and Group, and John Leahy, chief operating officer customers, Airbus Commercial Aircraft, sign an agreement for up to 36 additional A380 aircraft. (Emirates photo courtesy of Airbus)

Airbus' superjumbo A380 has gotten a new lease on life, with Emirates Airline signing a memorandum of agreement to buy up to 36 more of the jets.

The deal will have no direct impact on Airbus' operations in Alabama: Its facility in Mobile assembles the smaller A320 family of jets. But for the company as a whole, it quenches talk of shutting down production for an ambitious aircraft seen as a flagship.

A major deal with Emirates had been expected at the Dubai Air Show in November, but it never came together. That caused uncertainty for the whole A380 program, a plane so big that it requires longer runways and different airport fixtures that most other commercial jets. On Monday, Airbus' outgoing chief Salesman John Leahy told reporters that "if we can't work out a deal with Emirates, there is no choice but to shut down the program," according to the Associated Press.

Previous reports had indicated that Airbus wanted assurances of enough orders to keep production going; Leahy said a target was eight to 10 years of production at a minimum rate of eight to 10 years, or 48 to 60 aircraft total. Meanwhile, Emirates wanted guarantees of the program's long-term viability.

Airbus announced a breakthrough on Thursday, with Leahy and Sheikh Ahmed bin Saeed Al Maktoum, Chairman and CEO of Emirates, signing a deal estimated at $16 billion. It commits Emirates to 20 A380s with an option for 16 more, and deliveries to start in 2020.

Al Maktoum was quoted by Airbus as saying that "We've made no secret of the fact that the A380 has been a success for Emirates" and "We will continue to work closely with Airbus to further enhance the aircraft and onboard product." Emirates took delivery of its 100th A380 in November, according to Airbus.

"I would like to thank Emirates, HH Sheikh Ahmed, Tim Clark and Adel Al-Redha for their continued support of the A380," said Leahy, who retires as Airbus' chief operating officer for customers at the end of January. "This new order underscores Airbus' commitment to produce the A380 at least for another ten years. I'm personally convinced more orders will follow Emirates' example and that this great aircraft will be built well into the 2030s."

While adoption of the A380 has been slower than hoped, though Airbus has delivered more than 220 of them so far. Airbus maintains it is an "essential part of the solution to sustainable growth" because it eases congestion by putting more people on fewer aircraft.

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