Moderators: richierich, ua900, PanAm_DC10, hOMSaR

 
User avatar
Slug71
Posts: 1531
Joined: Wed Jan 04, 2017 6:08 am

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 2:36 am

Bald1983 wrote:
Slug71 wrote:
Bald1983 wrote:

If a bullfrog had wings he would not bump his butt so much. Boeing is a lot closer to meeting its sales projections; the A-380 is not. But for Emirates, the program would be dead. Even if the parameters change, the A-380 was designed to fly from one mega hub to another mega hub and there are not that many mega hubs. It would be very expensive to build shells and wait for someone to buy them. It is expensive to build them and it is expensive to store them.


Which is exactly why Airbus needs give the A380 a big update. Understandably (because of costs), they are reluctant to spend more money on the program. With good reason. But by the sounds of it, new engines might be a must. The GP7200 is done this year and RR won't provide anymore PIPs for the T900. Any potentially interested buyers will not like that. I wouldn't. That would be a GAP of almost 10 years until another efficiency improvement is done when the Ultrafan is available. Most likely the 10 years of commitment EK is asking for. Airbus most likely knows, that means they'll have to certify new engines now (which wasn't foreseen).


It sounds like you are starting from the position of saving the A-380 and working backwards. The better approach is to go with aircraft that meet your needs and that would be twins, 787's A-350's, etc. The A-380 was built and marketed on a flawed premise, mega-hub to mega hub. If it were not flawed, there would be a lot more of them flying, write now.


I am for saving the A380. It truely is a great aircraft to fly in. But I think it's going to take a big commitment to get more sales. Risky move and a decision i'm glad i do not have to make. It may have been a flawed premise, but the crash of the global economy was by far the biggest flaw. The aviation industry was hit really hard. Airbus is very lucky EK's business plan worked, and they'll be in good shape if air travel does double by the mid-2030s as expected. The A380 isn't limited to mega-hub to mega-hub.
 
User avatar
Slug71
Posts: 1531
Joined: Wed Jan 04, 2017 6:08 am

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 2:50 am

JHwk wrote:
lerc wrote:
First time poster here so take it easy lol.

Im curious...having seen the chaos that happened at JFK over the recent storm and all the congestion with so many planes, doesn't it demonstrate that airports are at capacity thus making the case for larger airplanes down the road.

It takes much longer to expand an airport with a 25-50 gate terminal than it is to build an A380.

Couldn’t Airbus pause the program until airlines realize there simply isn’t enough space in airports for the current frequency over capacity model?

While I think Airbus is best off pausing production for 2-3 years, airport congestion isn't a simple issue that can just be solved by a bigger plane.

Issues like JFK are often exacerbated by larger planes; I remember being on a 748 with both our flight and a 380 being cancelled after departure at LAX within 15 minutes. TBIT was a mess for about 4 hours trying to deal with the mess.


It's very expensive to pause production. Cheaper and easier to temporarily lower the production rate like Airbus has done. Shitty timing though, if Airbus does have to take on the cost to certify the T7000 and GEnx on the A380.
 
User avatar
seahawk
Posts: 10434
Joined: Fri May 27, 2005 1:29 am

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 6:04 am

DfwRevolution wrote:
seahawk wrote:
The business case for the A380 was solid. Market prediction solid, launch customers solid for the size of the plane.


No, it wasn't. This is plainly revisionist history. The Airbus market outlook in 2000 estimated a need for 1,200 VLA aircraft between 2000-2020. In reality, the actual market size was closer to 400 aircraft. How can you describe an estimate as "solid" when it was wrong by 66 percent?

Plenty of third-party analyst believed the A380 marketing case was too aggressive prior to launch because of trends - such as route fragmentation - that were observable at the time. Many of these critics were labeled as "Euro-skeptics" or "Boeing spokesmen" or whatever.


It seemed solid enough for all 3 engine makers and Boeing to invest into that market... But as every prediction it can and di turn out wrong in reality, a bit due to changing markets and bit due to the A380 being a bad VLA.
 
mzlin
Posts: 166
Joined: Sat Mar 31, 2012 6:32 am

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 6:20 am

Airbus is proposing an industrial partnership with China to save the A380:

https://www.ft.com/content/f67dd44e-f34 ... 65a6ce1a00
https://www.thetimes.co.uk/article/airb ... -3lfcptksw

Seems like a pretty desperate measure as it has clear downsides. No doubt Chinese companies will sooner or later recruit the engineers and managers from the joint venture to their internal efforts to build their own widebodies to directly compete with Airbus and Boeing. Also it is an indication that the A380 would not be profitable for the foreseeable future if built in Europe (but we know that already), whereas China would be willing to eat the costs in exchange for the education.

So Airbus' business plan is, if you can't make money from your trade secrets, then give them away to a competitor who can! Maybe something they learned from Bombardier... :duck:
 
parapente
Posts: 3061
Joined: Tue Mar 28, 2006 10:42 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 7:12 am

Mzlin
What at most is potentially being proposed is a 380 finishing centre in exactly the same way as there already is a finishing centre for the 320 and 330 out there (the Worlds second biggest aircraft market - soon to be the biggest).No need to get your knickers in a twist over that.I don't think Airbus has given any deadly trade secrets to the USA with exactly the same setup as they have over there.
 
User avatar
Jayafe
Posts: 1231
Joined: Mon Jun 26, 2017 3:12 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 7:34 am

DfwRevolution wrote:
"Hub-to-spoke" versus "point-to-point" is simply arguing semantics. They are the exact same thing.


Not at all. But hey, don’t let reality ruin your argument :)
 
User avatar
keesje
Posts: 15156
Joined: Thu Apr 12, 2001 2:08 am

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 7:57 am

7BOEING7 wrote:
keesje wrote:
I would not be shocked at all if we see 25 A380s for china, 30 for Emirates and 6-10 for BA. Often the press is right on the ball, sometimes they are merely repeating each other, quoting predictable analysts and writing what supports their financers preferences.


Why would BA buy/lease new ones when at the same time plenty of used ones are expected to be available at what one would expect to be very low prices/lease rates.


Unlikely IMO, they are saing that to get the price down. They have to rebuild it to their standards They have to have to right MTOW and engines. They never did it before with decades of opportunities.
 
Aither
Posts: 1321
Joined: Mon Oct 25, 2004 3:43 am

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 8:32 am

Jetty wrote:
Aither wrote:
How do you get these 4x daily ? on long haul routes almost nobody flies more than 2 and then flying above 2 one of the flights is often a 747 or an A380.
I agree there are a few counter examples but these are exceptions typically from airlines not having enough such routes to order a sub fleet of 747s or A380s.

Just from my home airport AMS I know 4 long haul destinations (ATL, MSP, DTW, JFK) with 3/4 flights daily of which none are 747/A380. But those flights are spread over the day and connect to different flight banks thus no upgrade in capacity desired.


<4500 nm routes. The rules are different above.
 
Aither
Posts: 1321
Joined: Mon Oct 25, 2004 3:43 am

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 8:51 am

Revelation wrote:
Aither wrote:
seahawk wrote:
That sadly ignores realities like the geographical placement of your hubs. The US3 would face much bigger problems if they would move all traffic to maybe 2 megahubs each, as other airlines could connect the secondary cities (which still would have huge catchment areas) directly to their hub. And it is no different in Europe. If the ME3 can offer many one stop connections, you are at a disadvantage if you need two stops for the same trip. Airlines serving a market with real original demand need other strategies as airlines aiming to thrive on connecting traffic.


Sorry but I really do not understand your argument here.
You are right that 2 stops is not attractive. But that's exactly why you need a more powerful hub so you can aggregate enough demand to fly non stop to secondary markets.
The US because of geography indeed need 2 international hubs (east+west) + 1 central (domestic/latin america). That's not the case in Europe and almost anywhere else.

The more time passes the more the world markets look like the US one and this means the world is moving away from the A380's strengths.

Currently the EU market looks more and more like the US market as consolidation continues to take hold.

It's no longer BA with LHR vs LH with FRA, it's IAG with LHR, MAD, BCN, etc vs LH with FRA, VIE, MUC, BRU, etc.

And that's how China is evolving too. US3, EU3, CN3.

More airports with more direct journeys for more people.

Fewer people shlepping to the LHRs and FRAs and AMSs of this world unless the want to get to London, Frankfort, or Amsterdam.

And no A380 sales for a very long time now.


LHR & MAD serve different traffic flows. BCN is purely a defensive move we will see how it will develop or not.
LH, despite the multiple hubs is operating one very powerful hub at FRA similar to ICN, SIN, HKG, DOH... something the US airlines don't have.
International routes from secondary cities in China are heavily loss making, actually illustrating the argument that on long haul it's better to have a strong hub. China is a mess, not a trend to follow.

With growth there are for sure more airports, more destinations in the world. But in reality most of the demand still wants to travel from and to the same big cities. There is actually a higher concentration of demand from Europe and the US as manufaturing is declining and service jobs are concentrated on the largest cities.
 
strfyr51
Posts: 6044
Joined: Tue Apr 10, 2012 5:04 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 8:54 am

I think this is a shot in the "Chops" to Emirates. Airbus knows good and well that should they cease production of the A380 that Emirates might well lose up to 35% of its value as an airline so heavily invested in the A380, and the A380 might lose up to 50% of it's value as a "white elephant" of an airplane.
I don't think anybody wants to see that.
 
muralir
Posts: 252
Joined: Mon May 27, 2013 3:44 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 9:07 am

I'm curious for those who say that a simple stretch of the a380 (without a new wing or engine) is too expensive, doesn't the 747-8 prove the opposite? The 748 was launched with an expectation of probably only selling at best 100-200 planes. Granted Boeing didn't view it as a blockbuster like the 787 or 777. But neither was it going to be a multi-billion dollar boondoggle. I figure it was probably targeted to break-even at 100 sales, and was meant mainly to keep a380 pricing honest. It accomplished that.

Similarly, a stretched a380, if it means additional orders from EK, should be a reasonable expense, with reasonable break-even points, no? (excluding the already spent program development costs which will likely never be recouped anyway)
 
fsabo
Posts: 197
Joined: Fri Dec 04, 2015 8:41 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 9:18 am

muralir wrote:
I'm curious for those who say that a simple stretch of the a380 (without a new wing or engine) is too expensive, doesn't the 747-8 prove the opposite? The 748 was launched with an expectation of probably only selling at best 100-200 planes. Granted Boeing didn't view it as a blockbuster like the 787 or 777. But neither was it going to be a multi-billion dollar boondoggle. I figure it was probably targeted to break-even at 100 sales, and was meant mainly to keep a380 pricing honest. It accomplished that.

Similarly, a stretched a380, if it means additional orders from EK, should be a reasonable expense, with reasonable break-even points, no? (excluding the already spent program development costs which will likely never be recouped anyway)


I don't think emirates is interested in a stretch, 11 across, or anything that increases capacity. What they want is more efficient engines. RR no longer seem to be willing.
 
mjoelnir
Posts: 9894
Joined: Sun Feb 03, 2013 11:06 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 10:50 am

muralir wrote:
I'm curious for those who say that a simple stretch of the a380 (without a new wing or engine) is too expensive, doesn't the 747-8 prove the opposite? The 748 was launched with an expectation of probably only selling at best 100-200 planes. Granted Boeing didn't view it as a blockbuster like the 787 or 777. But neither was it going to be a multi-billion dollar boondoggle. I figure it was probably targeted to break-even at 100 sales, and was meant mainly to keep a380 pricing honest. It accomplished that.

Similarly, a stretched a380, if it means additional orders from EK, should be a reasonable expense, with reasonable break-even points, no? (excluding the already spent program development costs which will likely never be recouped anyway)


The 747-8 was expensive. It was the biggest change to the 747 ever done. Furthermore Boeing run into trouble and had to spend more than anticipated. The plan was to sell mainly 747-8i and the combined sales expectations were around 400 frames. I assume the freighter sales matched expectations, but the sales of the passenger version did not.
 
mjoelnir
Posts: 9894
Joined: Sun Feb 03, 2013 11:06 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 10:50 am

fsabo wrote:
muralir wrote:
I'm curious for those who say that a simple stretch of the a380 (without a new wing or engine) is too expensive, doesn't the 747-8 prove the opposite? The 748 was launched with an expectation of probably only selling at best 100-200 planes. Granted Boeing didn't view it as a blockbuster like the 787 or 777. But neither was it going to be a multi-billion dollar boondoggle. I figure it was probably targeted to break-even at 100 sales, and was meant mainly to keep a380 pricing honest. It accomplished that.

Similarly, a stretched a380, if it means additional orders from EK, should be a reasonable expense, with reasonable break-even points, no? (excluding the already spent program development costs which will likely never be recouped anyway)


I don't think emirates is interested in a stretch, 11 across, or anything that increases capacity. What they want is more efficient engines. RR no longer seem to be willing.


:checkmark:
 
parapente
Posts: 3061
Joined: Tue Mar 28, 2006 10:42 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 10:54 am

Have to agree with Faso.Not are they interested in a stretch (they were a while back) they have even said as much.Nor are they willing to remove the 'A380 effect'.Its got super spaciousness .Something no other aircraft has these days and it's a big brand plus.
I know many people who will always choose the A380 over other a/c if there is a valid choice.
Nope the A380 is pretty perfectly tailored for Emirates needs as it is.'Course they would love new engines but they ain't getting them-period.
 
User avatar
SomebodyInTLS
Posts: 2017
Joined: Wed Jun 15, 2016 12:31 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 11:29 am

Waterbomber wrote:
Keeping the A380 going is about saving jobs.


I think that is completely wrong. There are relatively few people working on the A380 and they could all be used on other lines. Don't forget that every plant producing/assembling A380 parts also does the same for the rest of the Airbus line up.

Keeping the A380 going is first and foremost about keeping the maintenance and supply networks going and having the model available as long as there is a chance for an uptick in sales. As long as that chance is there then it would be stupid to write off all the millions and millions invested in infrastructure for nothing.
 
User avatar
Richard28
Posts: 2766
Joined: Thu Aug 14, 2003 5:42 am

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 12:22 pm

SomebodyInTLS wrote:
Keeping the A380 going is first and foremost about keeping the maintenance and supply networks going and having the model available as long as there is a chance for an uptick in sales. As long as that chance is there then it would be stupid to write off all the millions and millions invested in infrastructure for nothing.


absolutely.

I think it is also about keeping the line open until the next generation of engines become available, eg RR Ultra, at which point the business case for a neo will become much stronger, even if just to replace the existing A380 fleet in addition to any future growth that may have materialised by that time.
 
User avatar
Revelation
Posts: 29623
Joined: Wed Feb 09, 2005 9:37 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 1:09 pm

parapente wrote:
Have to agree with Faso.Not are they interested in a stretch (they were a while back) they have even said as much.Nor are they willing to remove the 'A380 effect'.Its got super spaciousness .Something no other aircraft has these days and it's a big brand plus.
I know many people who will always choose the A380 over other a/c if there is a valid choice.
Nope the A380 is pretty perfectly tailored for Emirates needs as it is.'Course they would love new engines but they ain't getting them-period.

It's pretty audacious of EK to demand that Airbus deliver them a plane with ~820 passenger capacity that is so efficient that they can put ~520-615 into it instead. That worked for a while but then the 77W reset the bar economically. Now EK demands Airbus keep that kind of economic edge going forward the next 20 years, all at a time where 787 and A350 have reset the bar yet again and the vendors are having no problems at all selling the big twins. Seems like a recipe for failure.
 
User avatar
Revelation
Posts: 29623
Joined: Wed Feb 09, 2005 9:37 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 1:20 pm

mzlin wrote:
Airbus is proposing an industrial partnership with China to save the A380:

https://www.ft.com/content/f67dd44e-f34 ... 65a6ce1a00
https://www.thetimes.co.uk/article/airb ... -3lfcptksw

Seems like a pretty desperate measure as it has clear downsides. No doubt Chinese companies will sooner or later recruit the engineers and managers from the joint venture to their internal efforts to build their own widebodies to directly compete with Airbus and Boeing. Also it is an indication that the A380 would not be profitable for the foreseeable future if built in Europe (but we know that already), whereas China would be willing to eat the costs in exchange for the education.

So Airbus' business plan is, if you can't make money from your trade secrets, then give them away to a competitor who can! Maybe something they learned from Bombardier... :duck:

To me it seems like a good thing for Airbus. Sure, putting up a new A380 sized hangar and staffing it will cost money, but there's lots of short term and long term benefits from placing 30 A380s in China. And of course the Chinese government looks good too, they get to say they're making jobs for the thronging middle class. Primary losers will be the Chinese airlines who get forced to take the Whale on top of all the other capacity in the order books. Secondary losers will be the non-CN airlines who will be the victims of the resulting capacity dump.
 
User avatar
neutrino
Posts: 1536
Joined: Thu May 10, 2012 5:33 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 1:25 pm

keesje wrote:
They never did it before with decades of opportunities.

Just because they never did it before doesn't necessarily mean they will never ever do it. Just saying.
 
User avatar
par13del
Posts: 12287
Joined: Sun Dec 18, 2005 9:14 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 1:37 pm

So how many A350's have already been sold into the Asian market and will the resulting capacity dump of the A380 affect future sales, is it all about the A380 and everything else is secondary?
 
User avatar
seahawk
Posts: 10434
Joined: Fri May 27, 2005 1:29 am

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 1:44 pm

mzlin wrote:
Airbus is proposing an industrial partnership with China to save the A380:

https://www.ft.com/content/f67dd44e-f34 ... 65a6ce1a00
https://www.thetimes.co.uk/article/airb ... -3lfcptksw

Seems like a pretty desperate measure as it has clear downsides. No doubt Chinese companies will sooner or later recruit the engineers and managers from the joint venture to their internal efforts to build their own widebodies to directly compete with Airbus and Boeing. Also it is an indication that the A380 would not be profitable for the foreseeable future if built in Europe (but we know that already), whereas China would be willing to eat the costs in exchange for the education.

So Airbus' business plan is, if you can't make money from your trade secrets, then give them away to a competitor who can! Maybe something they learned from Bombardier... :duck:


That is very interesting. Because if you look at the implications of the move. It would most likely mean that the outfitting in Hamburg will have to give, but Hamburg is also the A321 centre, now what could you do with an empty factory hall there.... this could be a A322 line of a A321 with a new wing.
 
OldAeroGuy
Posts: 3928
Joined: Sun Dec 05, 2004 6:50 am

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 3:02 pm

Waterbomber wrote:
We should also celebrate successes and the A380 is a success so far, in my view.
In the 20 years between 1989 and 2009, Boeing delivered 467 passenger B744's.
In the 10 years between 2007 and 2017, Airbus delivered 216 passenger A380's, almost half of the total B744 deliveries. So if you look at these numbers, it's clear that the A380 has taken over the B744's market completely, despite losing some 36 sales to the B748i.


And between October 2007 and October 2017, 654 773ER's were delivered.

It's clear that the 744's market has been overtaken but the airplane that did it was not the A380.

It may that the A380 has completely filled its own market and has shut down any near term sales.
 
Strato2
Posts: 673
Joined: Sat Sep 24, 2016 3:52 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 3:34 pm

OldAeroGuy wrote:
And between October 2007 and October 2017, 654 773ER's were delivered.


So what? 773ER is a lower capacity plane. One could also then argue that Airbus sold thousands of A320-series planes during the same timeframe. A smaller plane will nearly always sell better than the bigger one. Almost the only exception is the 747-8i that has utterly failed against the A380 in this respect.
 
Strato2
Posts: 673
Joined: Sat Sep 24, 2016 3:52 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 3:41 pm

Revelation wrote:
It's pretty audacious of EK to demand that Airbus deliver them a plane with ~820 passenger capacity that is so efficient that they can put ~520-615 into it instead. That worked for a while but then the 77W reset the bar economically.


You do realise 77W preceded the A380 and it's economics were fully known when the A380 took to the skies. Also to compete economically the 77W needs to be configured with the absolutely suckful 10-abreast seating.
 
User avatar
Revelation
Posts: 29623
Joined: Wed Feb 09, 2005 9:37 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 4:02 pm

Strato2 wrote:
Revelation wrote:
It's pretty audacious of EK to demand that Airbus deliver them a plane with ~820 passenger capacity that is so efficient that they can put ~520-615 into it instead. That worked for a while but then the 77W reset the bar economically.


You do realise 77W preceded the A380 and it's economics were fully known when the A380 took to the skies. Also to compete economically the 77W needs to be configured with the absolutely suckful 10-abreast seating.

I realize the 77W's economics pleasantly surprised both GE and Boeing, and were not known by Airbus when the main design decisions were made for the A380.

The sad reality is that A380 is finding itself competing against 10-across A380s, many of which are being sold cheap by Boeing as gap fillers, and will soon be finding itself competing against 778/779 with more acceptable 10x seating, an all new CFRP wing, and engines that are two generations newer than A380s.

EK knows this, thus their audacious request for "massive upgrades" to the A380 and various production related guarantees too.
 
User avatar
seahawk
Posts: 10434
Joined: Fri May 27, 2005 1:29 am

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 4:05 pm

Yet even with the newest engines a A380 at 10 abreast won´t win against a 10 abreast 777X, you would need to go 11 abreast and do a stretch and then it would offer too much capacity.
 
User avatar
neutrino
Posts: 1536
Joined: Thu May 10, 2012 5:33 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 4:08 pm

Strato2 wrote:
So what? ........

Tsk tsk tsk. That won't do for a civil discussion. You're not very polite, are you?
By all means refute his opinion and counter with your (self-perceived) superior one but keep at neutral tone even if you didn't want to be nice.
Have a good day/evening.
 
frmrCapCadet
Posts: 6370
Joined: Thu May 29, 2008 8:24 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 4:15 pm

The metaphor for EK is more accurately described as 1Stop rather than hub to spoke. Metaphors is just that, a handy label for a perceived reality, not reality itself (whatever that is).
 
mjoelnir
Posts: 9894
Joined: Sun Feb 03, 2013 11:06 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 4:20 pm

[list=][/list]
seahawk wrote:
Yet even with the newest engines a A380 at 10 abreast won´t win against a 10 abreast 777X, you would need to go 11 abreast and do a stretch and then it would offer too much capacity.


The A380 beats the 777-300ER at 10 seats a row and it would beat the 777-9 at 10 seats a row with comparable engines.
 
dtw2hyd
Posts: 9100
Joined: Wed Jan 09, 2013 12:11 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 4:25 pm

Strato2 wrote:
Revelation wrote:
It's pretty audacious of EK to demand that Airbus deliver them a plane with ~820 passenger capacity that is so efficient that they can put ~520-615 into it instead. That worked for a while but then the 77W reset the bar economically.


You do realise 77W preceded the A380 and it's economics were fully known when the A380 took to the skies. Also to compete economically the 77W needs to be configured with the absolutely suckful 10-abreast seating.


Let me throw some hypothetical numbers. I am saying hypothetically because I don't want to waste 100 posts debating the sources.

Total hourly operating cost excluding airport and navigation charges.
A380 - $26,000 - $29,000
744 - $24,000 - $27,000
77W - ???
788 - $8,000 - $8,600

Hourly fuel and staff costs based on a 14hr ULH.
A380/484 pax - $18,000
77W/361 pax - $10,700

Do you really think it would wise to invest in an A380 with such a high trip cost?

Also, the CASM numbers don't factor in discounted tickets, award travel, and empty seats. They are good only if airline fills all seats at the list price.
 
OldAeroGuy
Posts: 3928
Joined: Sun Dec 05, 2004 6:50 am

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 5:34 pm

Strato2 wrote:
OldAeroGuy wrote:
And between October 2007 and October 2017, 654 773ER's were delivered.


So what? 773ER is a lower capacity plane. One could also then argue that Airbus sold thousands of A320-series planes during the same timeframe. A smaller plane will nearly always sell better than the bigger one. Almost the only exception is the 747-8i that has utterly failed against the A380 in this respect.


Ahh, but the A380 is a larger capacity airplane than the 744, which Waterbomber claims the A380 replaced.

The 10A/B 744 and the 10A/B 773ER are only about 10% apart in seating capacity, making the 773ER a suitable replacement for the 744.

Since the 773ER has sold nearly twice as many airplanes (839 vs 461) as passenger 744's, it appears to be the true 744 replacement rather than A380 as Waterbomber states.
 
User avatar
Polot
Posts: 15193
Joined: Thu Jul 28, 2011 3:01 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 5:37 pm

Strato2 wrote:
Revelation wrote:
It's pretty audacious of EK to demand that Airbus deliver them a plane with ~820 passenger capacity that is so efficient that they can put ~520-615 into it instead. That worked for a while but then the 77W reset the bar economically.


You do realise 77W preceded the A380 and it's economics were fully known when the A380 took to the skies. Also to compete economically the 77W needs to be configured with the absolutely suckful 10-abreast seating.

The 77W entered service almost exactly one year before the A380 first flew, and about 9 months before the A380 rolled out. I assure you that its economics were certainly not fully known when Airbus was designing its aircraft.
 
User avatar
Slug71
Posts: 1531
Joined: Wed Jan 04, 2017 6:08 am

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 6:00 pm

fsabo wrote:
muralir wrote:
I'm curious for those who say that a simple stretch of the a380 (without a new wing or engine) is too expensive, doesn't the 747-8 prove the opposite? The 748 was launched with an expectation of probably only selling at best 100-200 planes. Granted Boeing didn't view it as a blockbuster like the 787 or 777. But neither was it going to be a multi-billion dollar boondoggle. I figure it was probably targeted to break-even at 100 sales, and was meant mainly to keep a380 pricing honest. It accomplished that.

Similarly, a stretched a380, if it means additional orders from EK, should be a reasonable expense, with reasonable break-even points, no? (excluding the already spent program development costs which will likely never be recouped anyway)


I don't think emirates is interested in a stretch, 11 across, or anything that increases capacity. What they want is more efficient engines. RR no longer seem to be willing.


EK was interested in a small stretch a couple of years ago. I think they would still prefer a small stretch to add additional seats as opposed to the reconfigured cabin that the Plus offers. If Airbus has to certify new engines on the A380 now, may as well add a small stretch and optimize the frame as much as possible too.
 
fsabo
Posts: 197
Joined: Fri Dec 04, 2015 8:41 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 6:12 pm

Slug71 wrote:
fsabo wrote:
muralir wrote:
I'm curious for those who say that a simple stretch of the a380 (without a new wing or engine) is too expensive, doesn't the 747-8 prove the opposite? The 748 was launched with an expectation of probably only selling at best 100-200 planes. Granted Boeing didn't view it as a blockbuster like the 787 or 777. But neither was it going to be a multi-billion dollar boondoggle. I figure it was probably targeted to break-even at 100 sales, and was meant mainly to keep a380 pricing honest. It accomplished that.

Similarly, a stretched a380, if it means additional orders from EK, should be a reasonable expense, with reasonable break-even points, no? (excluding the already spent program development costs which will likely never be recouped anyway)


I don't think emirates is interested in a stretch, 11 across, or anything that increases capacity. What they want is more efficient engines. RR no longer seem to be willing.


EK was interested in a small stretch a couple of years ago. I think they would still prefer a small stretch to add additional seats as opposed to the reconfigured cabin that the Plus offers. If Airbus has to certify new engines on the A380 now, may as well add a small stretch and optimize the frame as much as possible too.


I agree that emirates would welcome a small stretch with new engines, but with no NEO the stretch is pointless.

If they NEO it (doubtful) it will likely get a small stretch and sharklets.
 
jsfr
Posts: 144
Joined: Tue Oct 20, 2009 2:36 am

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 6:27 pm

Emmanuel Macron arrived in China on a three day state visit this morning.

Any idea where Leahy is tomorrow/wednesday?
 
User avatar
ER757
Posts: 5020
Joined: Tue May 10, 2005 10:16 am

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 6:36 pm

mjoelnir wrote:
[list=][/list]
seahawk wrote:
Yet even with the newest engines a A380 at 10 abreast won´t win against a 10 abreast 777X, you would need to go 11 abreast and do a stretch and then it would offer too much capacity.


The A380 beats the 777-300ER at 10 seats a row and it would beat the 777-9 at 10 seats a row with comparable engines.

And yet no one's buying it.......it's just too much plane for most airlines to try and fill on a consistent basis. It only "beats" a 77W if you can put butts in all those seats. That's the crux of the 380's dilemma
 
strfyr51
Posts: 6044
Joined: Tue Apr 10, 2012 5:04 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 6:43 pm

fsabo wrote:
muralir wrote:
I'm curious for those who say that a simple stretch of the a380 (without a new wing or engine) is too expensive, doesn't the 747-8 prove the opposite? The 748 was launched with an expectation of probably only selling at best 100-200 planes. Granted Boeing didn't view it as a blockbuster like the 787 or 777. But neither was it going to be a multi-billion dollar boondoggle. I figure it was probably targeted to break-even at 100 sales, and was meant mainly to keep a380 pricing honest. It accomplished that.

Similarly, a stretched a380, if it means additional orders from EK, should be a reasonable expense, with reasonable break-even points, no? (excluding the already spent program development costs which will likely never be recouped anyway)


I don't think emirates is interested in a stretch, 11 across, or anything that increases capacity. What they want is more efficient engines. RR no longer seem to be willing.

If RR is not willing to build a new 1 off engine for the A380, and GE Can't because of their agreement with Boeing? Then PWA is the only engine builder left.
but then again? Who is going to guarantee the sales and PWA's revenue and engineering costs?
 
User avatar
Slug71
Posts: 1531
Joined: Wed Jan 04, 2017 6:08 am

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 7:16 pm

strfyr51 wrote:
fsabo wrote:
muralir wrote:
I'm curious for those who say that a simple stretch of the a380 (without a new wing or engine) is too expensive, doesn't the 747-8 prove the opposite? The 748 was launched with an expectation of probably only selling at best 100-200 planes. Granted Boeing didn't view it as a blockbuster like the 787 or 777. But neither was it going to be a multi-billion dollar boondoggle. I figure it was probably targeted to break-even at 100 sales, and was meant mainly to keep a380 pricing honest. It accomplished that.

Similarly, a stretched a380, if it means additional orders from EK, should be a reasonable expense, with reasonable break-even points, no? (excluding the already spent program development costs which will likely never be recouped anyway)


I don't think emirates is interested in a stretch, 11 across, or anything that increases capacity. What they want is more efficient engines. RR no longer seem to be willing.

If RR is not willing to build a new 1 off engine for the A380, and GE Can't because of their agreement with Boeing? Then PWA is the only engine builder left.
but then again? Who is going to guarantee the sales and PWA's revenue and engineering costs?


It would be pointless and very expensive to build a new engine for the A380 right now. A much better and cheaper option will be to certify the T7000 and GEnx. It will mesh well with 787, A330NEO and A350 fleets (parts and maintenance) and be a good stop-gap until around 2030 when the Ultrafan is ready.
With slow sales of the A330NEO, It's possible RR decided to end further PIPs on the T900 in the hopes that they can push the T7000 for the A380 for better ROI.
 
Bald1983
Posts: 625
Joined: Wed Jun 15, 2016 8:04 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 7:20 pm

Slug71 wrote:
Bald1983 wrote:
Slug71 wrote:

Which is exactly why Airbus needs give the A380 a big update. Understandably (because of costs), they are reluctant to spend more money on the program. With good reason. But by the sounds of it, new engines might be a must. The GP7200 is done this year and RR won't provide anymore PIPs for the T900. Any potentially interested buyers will not like that. I wouldn't. That would be a GAP of almost 10 years until another efficiency improvement is done when the Ultrafan is available. Most likely the 10 years of commitment EK is asking for. Airbus most likely knows, that means they'll have to certify new engines now (which wasn't foreseen).


It sounds like you are starting from the position of saving the A-380 and working backwards. The better approach is to go with aircraft that meet your needs and that would be twins, 787's A-350's, etc. The A-380 was built and marketed on a flawed premise, mega-hub to mega hub. If it were not flawed, there would be a lot more of them flying, write now.


I am for saving the A380. It truely is a great aircraft to fly in. But I think it's going to take a big commitment to get more sales. Risky move and a decision i'm glad i do not have to make. It may have been a flawed premise, but the crash of the global economy was by far the biggest flaw. The aviation industry was hit really hard. Airbus is very lucky EK's business plan worked, and they'll be in good shape if air travel does double by the mid-2030s as expected. The A380 isn't limited to mega-hub to mega-hub.


If an aircraft needs to be "saved" within ten years of its introduction into service, the answer should be why save it?
 
User avatar
diverdave
Posts: 815
Joined: Sun Mar 07, 2010 1:00 am

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 7:50 pm

mzlin wrote:
Airbus is proposing an industrial partnership with China to save the A380:

https://www.ft.com/content/f67dd44e-f34 ... 65a6ce1a00
https://www.thetimes.co.uk/article/airb ... -3lfcptksw


So it's kind of ironic that Bombardier turned to Airbus to provide marketing and a partnership to rescue the financially troubled CS program, and Airbus is now turning to the Chinese to provide sales and a partnership to rescue the financially troubled A380 program. (And yes, the A380 is financially troubled with the production rate set to drop below the level previously identified as "break-even.")
 
waly777
Posts: 761
Joined: Sun Oct 07, 2012 7:11 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 7:51 pm

mjoelnir wrote:
[list=][/list]
seahawk wrote:
Yet even with the newest engines a A380 at 10 abreast won´t win against a 10 abreast 777X, you would need to go 11 abreast and do a stretch and then it would offer too much capacity.


The A380 beats the 777-300ER at 10 seats a row and it would beat the 777-9 at 10 seats a row with comparable engines.


Unfortunately that is BS based on the configurations today that airline's have which operate both aircraft. Leeham went ahead to calculate based on normalised seating for both 380 and 779, the latter still better.

You are welcome to check their numbers and dispute it with facts. The sales numbers speak for themselves too.
 
User avatar
Slug71
Posts: 1531
Joined: Wed Jan 04, 2017 6:08 am

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 7:56 pm

Bald1983 wrote:
Slug71 wrote:
Bald1983 wrote:

It sounds like you are starting from the position of saving the A-380 and working backwards. The better approach is to go with aircraft that meet your needs and that would be twins, 787's A-350's, etc. The A-380 was built and marketed on a flawed premise, mega-hub to mega hub. If it were not flawed, there would be a lot more of them flying, write now.


I am for saving the A380. It truely is a great aircraft to fly in. But I think it's going to take a big commitment to get more sales. Risky move and a decision i'm glad i do not have to make. It may have been a flawed premise, but the crash of the global economy was by far the biggest flaw. The aviation industry was hit really hard. Airbus is very lucky EK's business plan worked, and they'll be in good shape if air travel does double by the mid-2030s as expected. The A380 isn't limited to mega-hub to mega-hub.


If an aircraft needs to be "saved" within ten years of its introduction into service, the answer should be why save it?


Because if air travel does double by the mid-2030s as expected, it will be needed. It is much cheaper and less risky to keep it around at a low rate production and give it a refresh, than design an all new VLA to be ready by that time. It probably wouldn't need to be saved within ten years of it's introduction if the global economic collapse didn't happen. I think both the A380 and 747-8 would have sold better (much closer to Boeing's outlook anyways).
 
Bald1983
Posts: 625
Joined: Wed Jun 15, 2016 8:04 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 8:10 pm

Slug71 wrote:
Bald1983 wrote:
Slug71 wrote:

I am for saving the A380. It truely is a great aircraft to fly in. But I think it's going to take a big commitment to get more sales. Risky move and a decision i'm glad i do not have to make. It may have been a flawed premise, but the crash of the global economy was by far the biggest flaw. The aviation industry was hit really hard. Airbus is very lucky EK's business plan worked, and they'll be in good shape if air travel does double by the mid-2030s as expected. The A380 isn't limited to mega-hub to mega-hub.


If an aircraft needs to be "saved" within ten years of its introduction into service, the answer should be why save it?


Because if air travel does double by the mid-2030s as expected, it will be needed. It is much cheaper and less risky to keep it around at a low rate production and give it a refresh, than design an all new VLA to be ready by that time. It probably wouldn't need to be saved within ten years of it's introduction if the global economic collapse didn't happen. I think both the A380 and 747-8 would have sold better (much closer to Boeing's outlook anyways).


Both companies are developing high capacity twin jets. Air travel rebounded soon after the recession. However, I will grant no one has a perfect crystal ball but my prediction is making a higher capacity twin jet.
 
Indy
Posts: 5112
Joined: Thu Jan 20, 2005 1:37 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 8:25 pm

I've seen it stated more than a few times that Emirates NEEDS the A380. Why does it need that jet over other high capacity jets? Their 2 class 77W seats something like 427 people and the 3 class seats 360. Best thing about every other widebody is that you can serve more destinations than the A380. You aren't limited to the highest demand routes and aren't limited to the airports that are equipped to handle the A380.
 
BHXLOVER
Posts: 220
Joined: Mon Feb 23, 2015 2:20 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 8:38 pm

Indy wrote:
I've seen it stated more than a few times that Emirates NEEDS the A380. Why does it need that jet over other high capacity jets? Their 2 class 77W seats something like 427 people and the 3 class seats 360. Best thing about every other widebody is that you can serve more destinations than the A380. You aren't limited to the highest demand routes and aren't limited to the airports that are equipped to handle the A380.


Because for a start EK has 8 daily A380 flights to and from LHR. They do not have the slots to carry that much traffic on 77W's
 
User avatar
Jayafe
Posts: 1231
Joined: Mon Jun 26, 2017 3:12 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 9:03 pm

Indy wrote:
You aren't limited to the highest demand routes and aren't limited to the airports that are equipped to handle the A380.


That's definitely one more US trauma about the A380. The airports that could support the A380 and can't handle it (regular operation) are not more than a few around the whole world (US apart as they simply refuse slightly adapting their facilities for absurd nationalistic reasons).
 
User avatar
Jayafe
Posts: 1231
Joined: Mon Jun 26, 2017 3:12 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 9:20 pm

One of the problems with closing the line is indeed the top gap in the portfolio. Airbus would need to develop at least the supposed A350-1100 (and a place where to build it) to be able to offer a product to those clients, or at least an alternative.
 
PHLCVGAMTK
Posts: 146
Joined: Tue Aug 29, 2017 6:50 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 9:21 pm

Question for people who are more knowledgable about industrial production and process: if Airbus shuts down the A380 program and converts the assembly lines to, say, A350 production, how many A350s per year could Airbus be building in that space? And can Airbus sell that many A350s? Especially in a world with no new A380s coming off the line. Maybe the A380 program is breaking even at its low production rate, but Airbus is leaving a lot of money on the table in leaving those factories essentially idle, and if so, that has to weigh in on the thinking in Toulouse.
 
VV
Posts: 2400
Joined: Sat Feb 13, 2016 1:03 pm

Re: Reuters:Airbus ready to phase out A380 if fails to win Emirates deal

Mon Jan 08, 2018 9:27 pm

PHLCVGAMTK wrote:
Question for people who are more knowledgable about industrial production and process: if Airbus shuts down the A380 program and converts the assembly lines to, say, A350 production, how many A350s per year could Airbus be building in that space? And can Airbus sell that many A350s?
...


Airbus will sell many A350, the majority of them will be the A350-900. There is little doubt about it.

As for the A380 program if Airbus phased it out there are some cost associated to it. First, they have to decommission all the tooling. Put the A380 into a "legacy program" with the associated cost for staffing etc. This legacy entity will have to continue its job many years after the last A380 will leave the factory.

Once the aircraft is phased out (from the manufacturing system) then the infrastructure can be allocated to something else. I have a vague memory about the land and the facilities of the A380 final assembly line are not owned by Airbus, but owned by the local governments. My understanding is that Airbus lease the infrastructure from them. Please do not take this as granted. Somebody needs to do some research. I am not going to do it.

Basically I wish to say that transforming the A380 final assembly line to something else will require some political belly-dancing. It is not impossible to do, though.

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos