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A380 To Be Scrapped?

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http://www.bbc.co.uk/news/business-30427116

Shares in French aviation firm Airbus fell as much as 4.5% on Thursday after it said it might halt production of its A380 superjumbo in 2018.

The aircraft manufacturer added it expected profits would be flat in 2016.

Airbus shares fell 10.4% to €43.20 (£34.32)on Wednesday, marking their worst one-day fall for six years and wiping €3.9bn off the company's value.

At the same time, Qatar Airways said it was postponing delivery of the first A350 jetliner "until further notice".

Delivery of the A350 to Qatar Airways had originally been planned for 13 December followed by a flight to Doha.

The two sides then scheduled a pre-delivery ceremony for Friday, before the handover was scrapped altogether.

The A380 aircraft is only in its seventh full year of operation and cost about $25bn to develop.

While Airbus will break even on the plane in the years up to 2018, chief financial officer Harald Wilhelm said the aircraft manufacturer would have to provide different engines from 2018 to make it more attractive, or discontinue making it altogether.

Is it feasible that new engines can be developed in such a sort time frame? Is this super-jumbo a massive white elephant?

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Airbus should buy a shitload of oil at these cheap prices and then offer A380s with free fuel for x million miles for the carriers in the years to come.

You're assuming the oil price isn't going to go down a lot further. It already went down by about 4.5% just today iirc.

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I fly the 380 a lot and I don't like it. I book flights on Emirates trying to fly the 777 as much as I can. much smoother and quieter. (also more elbow room, more important for me than leg room)

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The A380 was a bet on the theory that people would rather take two or three flights and change planes than pay a bit more to take one that goes direct.

Not a great plan, really. I'm guessing the rise in the price of oil didn't help, either, as the additional fuel cost of the extra hub stops may well be more than the cost of flying a smaller aircraft direct.

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At the same time, Qatar Airways said it was postponing delivery of the first A350 jetliner "until further notice until the price of oil goes back over $100".

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They can store the part-finshed ones, that aren't going to be delivered yet, in the car parks of the Tescos, that aren't going to open yet.

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I fly the 380 a lot and I don't like it. I book flights on Emirates trying to fly the 777 as much as I can. much smoother and quieter. (also more elbow room, more important for me than leg room)

I had the opposite experience on Perth -London flights. The Singapore Airlines A380 doing the singapore - London leg was far more comfortable than the 777's operated by Qatar and Ethiad that I have also used to do the same journeys. We are talking economy class here. I have also done Singapore - Milan in a 777 but that was business class.

Edited by Kurt Barlow

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I had the opposite experience on Perth -London flights. The Singapore Airlines A380 doing the singapore - London leg was far more comfortable than the 777's operated by Qatar and Ethiad that I have also used to do the same journeys. We are talking economy class here. I have also done Singapore - Milan in a 777 but that was business class.

Similar experience here, the A380 was better than the 777.

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These planes were conceived when prices were going through the roof. Now that the oil price is down, what's the aeronautical equivalent of the hummer, and where can I invest?

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The A380 was a bet on the theory that people would rather take two or three flights and change planes than pay a bit more to take one that goes direct.

Not a great plan, really. I'm guessing the rise in the price of oil didn't help, either, as the additional fuel cost of the extra hub stops may well be more than the cost of flying a smaller aircraft direct.

Think the one thing that has been confirmed re plane flights is that cost is of over riding concern if you are paying for your own ticket. This is pretty much demonstrated by certain budget airlines, who despite being continuously slated in the press seem to do very well in terms of passenger numbers.

I'm convinced A380 will be a success eventually, but it requires airlines to re-organise their entire operational capability, which is not going to happen in an instant. In the meantime, its extra carrying capability on primary routes is either going to enable its operators to grind the competition into the ground, or allow them to take greater profits.

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These planes were conceived when prices were going through the roof. Now that the oil price is down, what's the aeronautical equivalent of the hummer, and where can I invest?

Well to me you need to check out the price of aviation fuel rather than oil. The two may not be entirely correlated.

Secondly, I guess some airlines that have been under investing in new efficient engine technology might be under priced at the moment. There are probably more dominant issues though that need to be considered.

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Think the one thing that has been confirmed re plane flights is that cost is of over riding concern if you are paying for your own ticket.

If that was true, the A380 wouldn't be getting scrapped, and most scheduled airlines would be going bust.

When they're already paying $3000 for a holiday to a long-haul destination, saving $100 by taking a crappy flight that requires them to change twice at hubs and run through the terminals to make their connection (or take an extra day of holiday time so they can wait hours between those flights) is not of much interest to most people.

Still, maybe they can try to sell the remaining unsold A380s to Ryanair.

Edited by MarkG

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I had the opposite experience on Perth -London flights. The Singapore Airlines A380 doing the singapore - London leg was far more comfortable than the 777's operated by Qatar and Ethiad that I have also used to do the same journeys. We are talking economy class here. I have also done Singapore - Milan in a 777 but that was business class.

ST_20130902_SIA_8_3818805e.jpg

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http://www.bbc.co.uk/news/business-30427116

Is it feasible that new engines can be developed in such a sort time frame? Is this super-jumbo a massive white elephant?

There is always the potential for this. When the Boeing 747 was conceived, there were no suitable engines in production. Boeing took the chance that some suitable engines could be developed by the time they were ready for test flights.

I still think the A380 has a place on many routes where there is big demand and the seats can be filled.

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ST_20130902_SIA_8_3818805e.jpg

Ah, but anything is better on Singapore Airlines, even on the old Airbus 3-something.

My comparison is Emirates 777 and 380. For me the 777 is better as a passenger. My wife thinks the same.

Note, I fly Europe/Asia via Dubai monthly.

It could be the internal fittings.

Strangely, in Business, the 380 is a bit more flash as it has the proper bar where you walk up to and get smashed. Now that's awesome.

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