The European aviation and defense company Airbus stops production of the world's largest passenger jet A380.
After the Arabian airline Emirates reduced its order, there was no basis for a continuation of production, said Airbus on Thursday in Toulouse.
Last delivery 2021
Emirates is the largest A380 customer. The airline has decided to reduce the A380 orders from 162 to 123 machines. In the next two years, 14 remaining A380s would be received. As a consequence, Airbus will cease its deliveries in 2021, the company said.
Thousands of jobs at risk
In recent years, hardly an airline had ordered a model. Airbus threatened to run out of orders. The group recently reduced the annual production from temporarily up to 30 machines to only six. As a result of the decision of Emirates, there was no significant order backlog and thus no basis for a continuation of production, said CEO Tom Enders, according to the announcement.
Airbus will hold talks with the social partners over the next few weeks on the 3,000 to 3,500 jobs that could be affected over the next three years. But there will be plenty of opportunities for internal job changes.
Parts of the air giant are manufactured at Airbus sites in Germany – including Hamburg, Bremen, Stade and Augsburg. Because of the slowdown in orders for the A380, there are already thousands of jobs nationwide in the balance.
Group CEO Enders leaves construction sites
Airbus is also in a phase of upheaval – the change at the top of the group is pending. Frenchman Guillaume Faury is due to succeed German CEO Tom Enders in April. Enders leaves behind some construction sites.
Even otherwise it was a turbulent year for the European industry giant. Problems caused by delivery problems for engines of the A320neo series. Airbus was temporarily unable to complete around 100 aircraft by the middle of the year due to a lack of engines from Pratt & Whitney.
►After all, Airbus was hot on its heels in 2018 with its US arch rival Boeing. Europeans delivered 800 commercial aircraft to their customers, 82 more than a year ago. This Airbus was only six machines behind the US group Boeing, which has defended its rank as the world's largest aircraft manufacturer for decades.
Profit jump despite A380 load
Despite the heavy burden of hiring the giant airliner and the cost of the A400M military transporter, Airbus made a significant profit jump last year. The bottom line was a profit of 3.05 billion euros, or 29 percent more than a year earlier, as the Boeing rival currently announced.
Sales increased by eight percent to 63.7 billion euros. The special charges of A380 and A400M totaled around 900 million euros. Shareholders should receive a dividend increased by ten percent to € 1.65. Analysts had expected on average, however, a stronger increase.