Airbus to stop making struggling A380 superjumbo in 2021

Airbus had hoped the A380 would squeeze out Boeing’s 747 and revolutionize air travel as more people take to the skies. (File/AFP)
Updated 14 February 2019

Airbus to stop making struggling A380 superjumbo in 2021

  • Emirates is cutting back its orders for the plane and as a result Airbus has “no substantial A380 backlog and hence no basis to sustain production”
  • Airbus had hoped the A380 would squeeze out Boeing’s 747 and revolutionize air travel as more people take to the skies

TOULOUSE, France: European aviation giant Airbus said Thursday it will stop making its superjumbo A380 in 2021 for lack of customers, abandoning the world's biggest passenger jet and one of the aviation industry's most ambitious and most troubled endeavors.
Barely a decade after the 500-plus-seat plane started carrying passengers, Airbus said in a statement that key client Emirates is cutting back its orders for the plane, and as a result, “we have no substantial A380 backlog and hence no basis to sustain production.”
The decision could hurt up to 3,500 jobs, Airbus said. The company is releasing its 2018 annual earnings later Thursday and said the decision is expected to impact the results.
The decision is a boon for rival Boeing and a crushing blow for Airbus. The European plane maker had hoped the A380 would squeeze out Boeing's 747 and revolutionize air travel as more people take to the skies.
Instead, airlines have been cautious about committing to the costly plane, so huge that airports had to build new runways and modify terminals to accommodate it. The double-decker planes started flying in 2008 and seated more than 500 passengers.
The A380 had troubles from the start, including tensions between Airbus' French and German management and protracted production delays and cost overruns. Those prompted a company restructuring that cost thousands of jobs.
Industry experts initially expected A380s to long outlast the 747, which is celebrating its 50th birthday this year.
When it started taking on passengers in 2008, the A380 was hailed for its roominess, large windows, high ceilings and quieter engines. Some carriers put in showers, lounges, duty free shops, bars on both decks.


Argentine economy minister resigns amid deepening crisis

Updated 13 min 6 sec ago

Argentine economy minister resigns amid deepening crisis

  • The country’s peso ended the week having shed 20 percent of its value against the US dollar

BUENOS AIRES: Argentina’s Economy Minister Nicolas Dujovne resigned after a week of economic tumult caused by President Mauricio Macri’s defeat in a primary poll ahead of a general election.

Dujovne will be replaced by Hernan Lacunza, economy minister for Buenos Aires province, Argentine media reported.

The country’s peso ended the week having shed 20 percent of its value against the US dollar as both Fitch and S&P cut the South American country’s long-term credit rating, citing increased uncertainty and a rising risk of default.

Dujovne said, in a letter posted on the website of La Nacion newspaper, he was “convinced that, under the circumstances, the (government’s) management needs significant renewal in the economic arena.”

He leaves in the middle of a deepening economic crisis following last Sunday’s primary elections in which market-friendly Macri was dealt a huge blow in his bid for re-election when he polled 15 points less than center-left Peronist candidate Alberto Fernandez.

The primaries serve as a bellwether for general elections in October. Dujovne’s announcement marks the first change in Macri’s Cabinet since voters went to the polls.

Fitch, which downgraded Argentina’s credit rating two notches to “CCC,” said the center-right’s defeat “increases risks of a break from the policy strategy of the current administration of Mauricio Macri guided by a program with the IMF.”

Fernandez, now the clear favorite to unseat Macri, has questioned the reform program backed by a $56 billion rescue package from the International Monetary Fund.

Standard & Poor’s dropped Argentina’s rating a single grade from “B” to “B-.”

“My resignation is consistent with a government and political space that listens to the people and that acts accordingly,” Dujovne said, in a clear message to the Argentine electorate.