"VAN" (International Desk) :: Airbus announced plans to scrap production of the A380 superjumbo on Thursday, abandoning its dream of dominating the skies with a cruiseliner for the 21st century after years of lacklustre sales.
The world’s largest airliner, with two decks of spacious cabins and room for 544 people in standard layout, was designed to challenge Boeing’s legendary 747 but failed to take hold as airlines backed a new generation of smaller, more nimble jets.
Airbus said in a statement that the last A380 would be deliver in 2021.
Confirming a shake-up first, it said Emirates - the largest A380 customer -- had decided to reduce its orders for the iconic superjumbo and order a total of 70 of the smaller A350 and A330neo models.
The European company said it would enter talks with unions in coming weeks over the 3,000-3,500 jobs potentially affected. Enders later said the company could not guarantee all would keep their jobs.
The jobs at risk are mainly in France and Germany but there could also be an impact in Spain and Britain too.
Airbus took a charge of 463 million euros for shutdown costs, but is expected to be forgiven some 1 billion euros of outstanding European government loans under a funding system that stands at the centre of a trade dispute with Boeing.
Airbus shares rose 5 percent on investor relief that Airbus would close a long-running chapter of losses on the A380, also buoyed by stronger than expected 2018 results.
Airbus will produce 17 more of the planes including 14 for Emirates and 3 for Japanese airline ANA.
As part of the restructuring, Emirates placed a new order for 40 A330-900neo jets and 30 A350-900 aircraft, partially restoring a purchase of A350 aircraft which it cancelled in 2014.
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