Marked out as “wrong plane at wrong time” Airbus A380 is great guzzler of air-fuel, almost 3 times that of Boeing 777. As carbon neutrality becomes vogue in the future continuing or retiring A380 becomes crucial decision making in airline industry. An overhaul of airline fleet is now a nagging issue in airline business strategy:
By 2019 Airbus Company had enough of headaches and decided to cease the A380 programme. A two year interim period was fixed to finalize outstanding orders. The last one from the production line had its test flight in May 2021. The Company guaranteed that it would continue to service airlines that have bought A380 till end 2035 for maintenance contracts and supply of parts.
Writing for Simple Flying Jake Hardiman says: “One aspect in which the A380 excels is in what it offers in terms of passenger experience. This is one of the reasons that (Airbus CEO Guillaume) Faury is confident of it remaining an important aircraft despite its production having concluded. He stated that: It will probably remain the aircraft of choice for many, many passengers, because it is, indeed, a fantastic flight experience.” (Here). But the looming question cannot be wished away; that is whether airlines would continue to operate the plane till that date or retire or phase-out this super jumbo.
Most air travellers who used to fly in A380 had good word for the plane in terms of flight experience. Significantly, this spacious plane had many things to offer including wider leg space for passengers and facilities that are unique such as bar, lounge facility and in some cases luxurious suites.
On the negative side operators had to grapple with issues like fuel efficiency in times when the fuel prices are moving northward. More than that, A380 was notorious for emitting pollution that received opprobrium from environmental buffs. Their line of attack focussed on the failure of airlines to incorporate concept of “green line” with least pollution generated, if any.
Unexpected bolt from the Pandemic opened can of worms. Air travel whittled down to almost zero. The heart of the matter is when pandemic would be officially declared over by the WHO. Already air travel is not a predictable stuff and pandemic made it much dicier.
Although A380 is an engineering marvel it is operationally a colossal failure. Breakeven load factor for A380 is steeply above other jumbos. Getting the required seats to be filled specially in the first & business classes remained a tall order for airlines operating A380.
Understandably, there is no appetite for leasing or buying used planes when it comes to this super jumbo within the narrow window of time of 15 years of continued maintenance guaranteed by Airbus Company. The sad demise of this plane is now almost certain as airlines presently using A380 are phasing out or planning to retire these in the next few years. Air France & Lufthansa had already bid farewell. British airways has temporarily grounded it. China Airline & Air Nippon expressed reservation of its continued use. Singapore Airlines is planning to retire these.
Surprisingly, Emirates look at this issue differently. In fact the last plane produced and test flown by Airbus Company is to be despatched to Emirates. In airline business strategy, Emirates is no stranger for creating controversy or expressing contrarian thinking. My take is they have something up in their sleeves. Expect big surprise springing from Emirates!
Cheers!
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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