British Airways is willing to buy more Airbus A380s…if the price is right.
Last week, we learned that Emirates is exploring switching some of its A380 orders to smaller A350 or A330neo aircraft. The move would likely sound the death knell for the A380 program, which has simply failed to pick up more customers in recent years.
But at a oneworld event in London, IAG (parent company of British Airways and Iberia) CEO Willie Walsh suggested a “clear” solution:
I’ve been very clear with Airbus that if they want to sell the aircraft, they’re going to have to be very aggressive on the price.
In many ways, Airbus has already given up on its A380 program, which has been a cash drain. It is facilitating discussions with Emirates on the A330/A350 transition and some say Airbus just wants to put the A380 program out of its misery.
But British Airways is eyeing replacements for its Boeing 747-400s and talking to Airbus about doing so with A380s. Currently, BA operates 12 Airbus A380s. Walsh added:
I’ve no concerns about the A380… it’s been an excellent aircraft for us. We have made it clear to Airbus that we might consider some additional aircraft. But the pricing of that aircraft has not been as attractive as we believe it needs to be.
I’m sure other airlines would line up as well if Airbus was just going to give it away…
CONCLUSION
Airbus is in a very difficult position. It loses money on its A380 program and would like to retire it, but it doesn’t want to lose market share and orders of other aircraft by prematurely shutting down the A380 plants. There may be no margin left to squeeze out of Airbus, but if it wants to continue the A380 program it is going to need to lose even more money. Thus, BA’s idea of cutting price is one plan to save the program, just probably not a viable one.
Does this mean BA is a likely buyer of secondhand A380s ? I’d imagine those would certainly be a lot cheaper than new ones.
Totally off topic, but thank you for having a “Return to Top” button on your site!
The problem with the 380 is that most of the airports equipped to handle it are lower yielding airports that are saturated with carriers. It’s tough to consistently fill one of those planes on routes like that without competition coming in to steal your lunch.
From a commercial perspective and therefore also an existential perspective, the A380 is a dog. It needs to be put out of its misery.
No better plane than the B777.
You’ve obviously never been on the A350!
It’s the 777 that’s the dog.
You need to know the spacious and quiet cabin A380 creates. The B777s are no better than A380.
You need to know the spacious and quiet cabin A380 creates. The B777s are no better than A380. Also, the A380 is very efficient. A380 is more effective than a Toyota Prius.
Makes me wonder if there is a Brexit angle to this. It might be they push Airbus to maintain Airbus jobs in the UK in exchange for supporting the A380. No a bad option for either side of the deal.
The A 380 is a waste of money IMO. While it may provide spacious interiors, the downside to that is economy is as packed as on a smaller aircraft. In addition to that its a pig ugly aircraft, almost as if someone inflated an A320 and slapped 2 engines on it.
The sooner this monstrosity is removed from service, the happier I will be.
Is there any airline that does not pack in economy?
So Walsh wants a premium aircraft for his high cost low service operation which is not good value to anyone except him and his cronies.
I think Airbus should not reduce the price by a cent.
You can’t have your cake and eat it. Demand for the A380 has been hurt particularly by the 777-300ER such that it has not been anything near the commercial success Airbus has predicted. That model Triple Seven has outsold the combined quad-jetliner market in the 350 seat or greater category, including cargo, since 1997. That’s A340-500/-600, 747 (all variants) and the A380, combined. Either reduce the price and sell more, or improve the product and sell more, or kill it. If Airbus is to keep the A380 in production, now is the time for product improvement.