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The largest airliner in the world, with two spacious cabin decks and a standard capacity of 544 pbadengers, was designed to challenge Boeing's legendary 747, but failed to impress because airlines supported a new generation of smaller and more agile jets.
Airbus announced Thursday that the latest A380 would be delivered in 2021.
The reshuffle took place after Emirates – the largest customer of the A380 – decided to reduce the number of orders for the iconic superjumbo and order a total of 70 smaller A350s and A330s.
"It was a painful decision for us. We have invested a lot of effort, a lot of resources and a lot of sweat … but we must obviously be realistic, "said Airbus CEO Tom Enders.
Airbus said it would begin negotiations with the unions in the 3,000 to 3,500 potentially affected jobs.
Closing costs represented a charge of € 463 million, but around € 1 billion of outstanding European loans should be canceled as part of a financing system at the heart of a commercial dispute with Boeing.
Airbus will produce another 17 aircraft, including 14 for Emirates and 3 for the Japanese company ANA.
As part of the restructuring, Emirates placed a new order for 40 A330-900neo jets and 30 A350-900 aircraft, partially reinstating an A350 purchase, which was canceled in 2014.
Responding to behind-the-scenes concerns from Asian customers in Europe, Enders pointed out that Airbus would continue to support the A380 as long as it remains in service.
Emirates "disappointed"
Emirates, which has built its global brand around the A380 and Boeing 777 and which also owns 100 Airbus superjumbos in its fleet, said it was disappointed with the closure.
"Emirates has been a staunch supporter of the A380 since its inception," said Emirates President Sheikh Ahmed bin Said al-Maktoum.
"Although we are disappointed to have to give up our order and regret that the program can not be maintained, we admit that it is the reality of the situation," he added.
The decision came after Emirates failed to reach an agreement on engines with Britain's Rolls-Royce, which announced Thursday it had announced the decision to end the program.
The A380 will remain a pillar of the Emirates fleet well into the 2030s, the airline announced.
Local rival Emirates, Etihad of Abu Dhabi, also revealed that it was removing some orders for Airbus and Boeing aircraft, highlighting growing questions about the growth of Gulf airlines.
Making its maiden flight in 2005, the A380 was a major milestone in Airbus' efforts to compete with Boeing on an equal footing and challenge what had been a cash cow for its rival.
However, sales of the industry's largest four-engine jets declined due to improvements in lighter models, such as the Boeing 787 and 777 or Airbus A350s.
The prospect of a premature shutdown of A380 production appeared last month as part of a restructuring of orders first reported by Reuters.
On Wednesday, Reuters announced that Airbus was about to abolish the superjumbo and that it would likely make an update on Thursday.
The decision to end production is the last major step for Enders, who resigns in April.
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