PPRuNe Forums - View Single Post - A380 production repreive - EK order
View Single Post
Old 19th Jan 2018, 15:56
  #26 (permalink)  
JammedStab
 
Join Date: Apr 2008
Location: nowhere
Posts: 1
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by GrahamO
Emirates aren't 'propping up the A380' as they are getting the aircraft they want at a very good price.

Propping it up would involve paying over the odds and there is zero evidence for that happening.
I read an article today about the A380 that was interesting. As you may know, Airbus received launch aid from Europe which does not have to be paid back if they program is not profitable. Seems like a good deal and it is for Airbus.

But...at the low rate that they are now going to be producing the aircraft, they lose money on each airframe, a cost that is not covered. This order just extends the period of low airframe production meaning more loss for a longer time.

What is needed is new fleets created at other airlines but with each A380 sold to EK, it is less likely that another airline will start an A380 fleet as their potential A380 pax go to EK instead.
JammedStab is offline