Aerospace Analyst: Should Airbus Should Cancel A380 Program?

[Matt Molnar]

"We have been a consistent supporter of the A380 and believe it will indeed prove to be a technically proficient airplane that passengers will enjoy," analyst Scott Hamilton, of Leeham News & Comment, wrote. "But given the long-term financial implications, we have to ask, Has the time come for Airbus to cut its losses and terminate the program? While we continue to believe that the company will sell 500-600 airplanes over 20 years (down from our previously believe of 700), if you stand little chance of making money, why bother? The resources are better put to use on the core A3-Series programs."

(via SeattlePI.com)

[mirrodie]

Wow....if it does, then it would truly be following in the footsteps of its predecessor, Concorde.

[Matt Molnar]

Short of another war between France and Germany, I can't think of any circumstances under which this could happen.

If anything, the A380-900 and -1000 might be killed. But canceling hundreds of orders in one swoop would cost the company more than building each planes at a loss.

[NIKV69]

It's too early to make that decision. We will have to see how the climate changes but if it continues I can only see a couple of airlines making money with this thing. Many are going to do what Emirates did and just use a more efficient 777. I haven't seen anyone who will use the bigger configuration either. Flying 300-500 people is not where this thing makes or saves money. Also we are assuming it's safety and mx record are flawless which so far is not off to a good start. AF and Qantas must be wondering what the future brings. They have had a couple of ugly incidents lately and it's horrible for PR.

[Midnight Mike]

Cancelling the A380 program at this stage of development would be a disaster for Airbus. Best to learn from mistakes and let the orders continue.

Of course, that does not mean that Airbus can not work with present A380 customer & try to get them to change their aircraft orders