Thursday, 14 February 2019

Early end of A380 production not a disaster, but could be a warning

The Airbus super-jumbo was launched at a time of confidence in luxury air transport but economics has forced a truncation of its production programme. (Simon Calder on BBC Business this morning pointed to the absence of A380s on the most popular route in the world, London to New York. Its profitability is guaranteed by business travellers who are more concerned about frequency than the travel experience.) This is similar to the story of Concorde, but I would guess that the A380 has overall been more successful than the joint French/UK enterprise. Certainly, production will continue for another two years, and Airbus's profits (up 30% in 2018 over 2017) have not been affected.

Airbus has a nine-year backlog of orders. The A350 has been very successful, ironically contributing to the loss of enthusiasm for the A380. So Broughton will be in business for some years to come, but will it be at the same level of activity? When Airbus introduces its next new model, will it produce the wings in Wales or tool up in one of its factories in mainland Europe?

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