The big bet of the Airbus A380 does not bear fruit



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Gyms, showers and roulette tables in flight – only the sky would be the limit of Virgin Atlantic's A380 superjumbo. Sir Richard Branson suggested offering double beds and an on-board casino so that his pbadengers could have the chance twice.

He did not have to be. Virgin was among the first customers of the A380, but after placing an order for six aircraft, the company had never followed and the deal was finally canceled.

Airbus announced on Thursday that it would end production of the 550-seat double-decker plane in 2021 after Emirates, its biggest customer, decided to drastically reduce its order for the jet.

The decision, described as "painful" by Airbus chief executive Tom Enders, was not a surprise for many players in the sector. Emirates A380s offer private suites and private shower spas in first clbad and even economy clbad. Airlines customers have always been less convinced of its commercial potential.

In 2000, when it launched this program, the program was a Boeing competitor, the 747. The European aerospace group had bet that the intensification of international air traffic and the saturation of airports would stimulate demand for larger aircraft.

The bet has not paid off. Airlines have been reluctant to engage a four-engine aircraft that can carry more than 500 pbadengers, but had to fly at full capacity to be effective.

Rob Morris, global head of consulting at Flight Global, said "a combination of changing demand profile, competitive dynamics, and airline business models has potentially been made for the A380."

A competitor of the Boeing 777-300ER aircraft, Morris said, "with a slightly lower capacity than the A380, but a slightly higher cost of seat-seats."

"As an air planner, it is better to fly with lower commuting costs and slightly higher seat-seat costs without having to take the risk of filling the big planes," added M Morris.

Instead, a new generation of small aircraft – with newer, more fuel-efficient materials, systems and engines – like the Boeing 787 Dreamliner and Airbus' own A350 has arrived.

Aircraft can travel a similar range with only two engines and have given airlines greater flexibility in terms of routes. Emirates said last week that while reducing the number of ordered A380s, it would rather opt for a combination of A350 and A330 models. The era of jumbo jet is over – for the moment.

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