Qantas Cancels Order for the Threatened Airbus A380

Qantas Cancels Order for the Threatened Airbus A380

The Australian carrier Qantas has canceled an outstanding 2006 order for eight Airbus A380 airplanes, adding to the uncertainty about the fate of the world’s largest passenger aircraft.

Qantas said in a statement on Thursday that it would instead upgrade the 12 A380 planes that it already had, adding that “these aircraft have not been part of the airline’s fleet and network plans for some time.”

Airbus has already said the giant plane’s days could be numbered, acknowledging a year ago that it would have to end production if Emirates, its only major customer, did not order more.

A bet that airport congestion and increased international travel would lead to demand for larger planes, the A380 was pitched as a way for airlines to transport more passengers with limited landing slots. The aircraft can carry more than 500 passengers.

Instead, the industry shifted toward using smaller airplanes, a move that favored Airbus's main competitor, Boeing, and other makers of midsize planes that are cheaper to maintain.

In an emailed statement on Thursday, Airbus said it had “agreed to the contract amendment announced by Qantas.”

The double-decker A380 costs on average $445.6 million and boasts amenities like showers, first-class suites and a bar, but it has been a loss maker for Airbus. And the company’s chief operating offer, John Leahy, admitted in January 2018 that without an order from Emirates, which owns a fleet of 105, A380 production would be shut down.

The jumbo jet was given a lifeline days later when Emirates put in a $16 billion order for as many as 36 of the planes. But this deal appears to be up in the air, too: Airbus confirmed at the end of January that it was in discussions with the Dubai-based airlines about the A380 contract. Emirates already owns 105 A380s. On Thursday, Airbus declined to comment on those talks.

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