Tokyo, 18 February 2019 – Airbus confirms the growing success of its Flight Hour Services (FHS) business in Japan with a new contract from soon-to-be A350 XWB operator Japan Airlines (JAL).
Airbus is welcoming JAL into its FHS Components Services programme for its new fleet of 31 A350-900 and A350-1000 aircraft.
JAL will become the first Airbus FHS A350 operator in Japan to benefit from the increased operational reliability provided by Airbus FHS, world leader for this service in the A350 market. The Japanese carrier plans to introduce the highly anticipated A350-900 on its Haneda – Fukuoka route from September. This FHS contract will make JAL’s A350 entry-into-service even smoother on one of Japan’s busiest routes.
Airbus FHS will provide fully integrated component services including spare pool access, on-site-stock replenishment at the main base and components repair.
Through FHS, Airbus offers airlines its extensive and proven expertise in fully integrated maintenance services, and the advantage of its OEM expertise as well as one single interface to manage their whole fleets and associated component support operations.
About Airbus Airbus is a global leader in aeronautics, space and related services. In 2017 it generated revenues of € 59 billion restated for IFRS 15 and employed a workforce of around 129,000. Airbus offers the most comprehensive range of passenger airliners from 100 to more than 600 seats. Airbus is also a European leader providing tanker, combat, transport and mission aircraft, as well as one of the world’s leading space companies. In helicopters, Airbus provides the most efficient civil and military rotorcraft solutions worldwide.
TOULOUSE,
France (Reuters) – Loved by passengers, feared by accountants, the
world’s largest airliner has run out of runway after Airbus decided to
close A380 production after 12 years in service due to weak sales.
The
decision to halt production of the A380 superjumbo is the final act in
one of Europe’s greatest industrial adventures and reflects a dearth of
orders by airline bosses unwilling to back Airbus’s vision of huge jets
to combat airport congestion.
Air
traffic is growing at a near-record pace but this has mainly generated
demand for twin-engined jets nimble enough to fly directly to where
people want to travel, rather than bulky four-engined jets forcing
passengers to change at hub airports.
And
while loyal supporters like top customer Emirates say the popular
544-seat jet makes money when full, each unsold seat potentially burns a
hole in airline finances because of the fuel needed to keep the huge
double-decker structure aloft.
“It’s
an aircraft that frightens airline CFOs; the risk of failing to sell so
many seats is just too high,” said a senior aerospace industry source
familiar with the program.
Once
hailed as the industrial counterpart to Europe’s single currency, the
demise of a globally recognized European symbol coincides with growing
political strains between Britain, France, Germany and Spain where the
plane is built.
That’s
in stark contrast to the display of European unity and optimism when
the engineering behemoth was unveiled in front of European leaders under
a spectacular light show in 2005.
British
Prime Minister Tony Blair called the A380 a “symbol of economic
strength” while Spanish premier Jose Luis Rodriguez Zapatero called the
rollout “the realization of a dream”.
Passengers
marveled at the European giant with room for 70 cars on its wings,
looking rather like the hump-backed Boeing 747 but with the top section
stretching all the way to the back.
Airlines had initially rushed to place orders, expecting it to lower operating costs and boost profits as the industry crawled out of a slowdown in tourism since September 2001.
Airbus boasted it would sell 700-750 A380s, which nowadays cost $446 million at list prices, and render the 747 obsolete.
In
fact, A380 orders barely crossed the 300 threshold and the 747 has
outlived its rival, after reaching the age of 50 this week.
FALL FROM GRACE
The seeds of the A380’s fall from grace were already present behind the scenes of the 2005 launch party, insiders say.
Despite
public talk of unity, the huge task was about to expose fractures in
Franco-German co-operation that sparked an industrial meltdown. When the
delayed jet finally reached the market in 2007, the global financial
crisis was starting to bite. Scale and opulence were no longer wanted.
Sales slowed.
At
the same time, engine makers who had promised Airbus a decade of
unbeatable efficiencies with their new superjumbo engines were
fine-tuning even more efficient designs for the next generation of
dual-engined planes, competing with the A380.
Finally,
a restless Airbus board started demanding a return and stronger prices
just when the plane desperately needed an aggressive relaunch and fresh
investment, insiders said.
“It was a triple whammy,” said a person close to the debate.
As demand see-sawed, so did the plane’s marketing: starting with luxuries including showers, then vaunting its green credentials with the messianic slogan ‘Saving The Planet One A380 at a Time” before joining the race to squeeze in more people and cut costs.
Yet
despite its own deep industrial problems, Boeing was winning the
argument with its newest jet, the 787 Dreamliner. It was designed to
bypass hubs served by the A380 and open routes between secondary cities:
a strategy known as “point to point”.
Airbus fought back, arguing that travel between megacities would nonetheless dominate air transport.
But
economic growth would splinter in ways Airbus did not predict.
Intermediary cities are growing almost twice as fast as megacities,
according to a 2018 paper posted by the Organisation for Economic
Co-Operation and Development.https://bit.ly/2P28F3h
That’s a boon for twinjets like the Boeing 787 and 777 or Airbus’s own A350, which has outsold the A380 three to one.
Airbus
Chief Executive Tom Enders, who was rarely seen as an enthusiastic
backer of the A380, toyed with ending the project about two years ago
but was persuaded to give it a last chance.
But with Emirates unable to hammer out an engine deal needed to confirm its most recent A380 order, time had finally run out.
“Airbus
tends to think of it as a flagship; Enders looks at it and sees a lack
of orders,” said a person close to the German-born CEO, who steps down
in April.
Some insiders worry that Airbus will lose a valuable symbol of pride and commercial audacity when production ends in 2021.
Now,
airline bosses are seeking assurances that Airbus will support the A380
with spare parts for years to come. Many invested in the A380 as their
flagship while airports also spent heavily on new facilities.
Some customers like Air France and Lufthansa may not shed too many tears, analysts say.
They
too invested in the A380 but may also be relieved to see a potent
weapon removed from Gulf rivals like Emirates, whom they accuse of
flooding the market.
Emirates insists it plays fairly and has called the A380 a “passenger magnet,” misunderstood and badly marketed by rivals.
Its
chairman said on Thursday he was disappointed in the A380’s demise, but
added “we accept that this is the reality of the situation”.
Airbus acknowledged reports last Thursday that Quantas has cancelled an order for its 8 remaining A380 aircraft. The announcement comes on the heels of Emirates re-evaluating its decision to add on to its remaining Super Jumbo order book.
Qantas Airlines of Australia confirmed it would not take any more of the world’s largest airplane, operating a fleet of 12 aircraft, instead of the 20 it had originally ordered. This news comes on the heels of Airbus’ largest A380 customer Emirates beginning discussions with Airbus over the possibility of changing some, or all, of its remaining A380 orders to smaller A350 or A330neo models after failing to secure an engine contract from Rolls-Royce for the last A380 order it placed.
Airbus has declined to comment on the future of the A380 at this time, but reports indicate that an announcement could come as soon as this Thursday.
Airbus also reported the cancellation of an order for five of its smallest aircraft, the 110-seat A220-100. The identity of the A220 buyer was not disclosed, but is widely believed to be the Swiss-based business charter carrier PrivatAir, which filed for insolvency at the end of 2018. PrivatAir had placed an ordered for 5 of the type, the Canadian Bombardier CS100 at the time of the order, in early 2012.
British Airways’ new year’s resolution is to provide its customers with even more quality and choice in every cabin on every route – with a £6.5bn investment and 18 great reasons to look forward to flying with the airline in 2019.
Here are some of the reasons to fly with British Airways this year:
New routes. Customers can try out the airline’s new routes to Charleston y’all, with Pittsburgh, Osaka, Kos and Corsica, Ljubljana, Montpellier, among others. It’s the airline’s most extensive route network in more than a decade.
New aircraft. Customers can fly on one of the carrier’s 15 plush new aircraft being delivered this year – including four fabulous A350 aircraft.
A brand-new Club World seat, featuring on the new A350 aircraft, and two 777 aircraft by the end of the year.
WiFi. The best, live streaming WiFi on all short-haul flights and the vast majority of long-haul flights so customers can sit back and enjoy films and TV shows from their favourite streaming service.
A new look for First. New first-class dining, bedding and amenity kits from one of the UK’s best-loved designers.
An industry-leading makeover for World Traveller Plus. Look out for new bedding and new dining in this intimate and exclusive cabin.
New lounges for customers to relax and enjoy ahead of their flight, in San Francisco, Johannesburg, Geneva and JFK.
An extended partnership with premium dining supremo Do&Co, the airline’s new in-flight caterer from Heathrow and already providing meals in Club Europe.
A new ba.com homepage, making booking with British Airways even easier and more intuitive.
New partners for the British Airways Executive Club, offering even more ways to collect and spend Avios.
Digital bag tags. A UK airline first. Sync your personal baggage tag with the BA app, drop your luggage at the airport, and fly.
Self-service baggage drops at Heathrow T3 offering customers the same service as T5.
Facial recognition technology. More biometric technology at Heathrow, London City and Gatwick, New York JFK, Orlando, Los Angeles, Miami and many more. The system makes boarding faster and more convenient, helping British Airways depart flights on, or ahead of time.
New emissions-free, remote-controlled pushback vehicles for long-haul aircraft to continue to improve punctuality. Short-haul versions reduced pushback delays by more than 70 per cent.
New winter equipment – helping British Airways safely de-ice its fleet of almost 300 aircraft quicker than ever during the frosty winter months.
Hotel reservations. Investment in new technology will see rooms automatically booked for customers who miss their flights due to disruption.
Enhanced customer service. Almost 30,000 staff will receive the airline’s all-new customer service training. At T5 – more airport hosts than ever before are being re-trained to manage any customer issue, from re-booking to upgrades, lounge access, baggage and transfer queries and flight information.
And last but not least – look out for British Airways’ Centenary celebrations. It’s going to be 100 years’ old this year, and will be celebrating in style, sharing its heritage and looking at what to expect from flying in the future.
A British Airways 787 Dreamliner G-BBJA flying over Derby ‘s Rolls Royce sites.
PARIS/DUBAI (Reuters) – Dubai’s Emirates is exploring switching some orders for the world’s largest jetliner, the Airbus A380, to the smaller A350 in a move raising new doubts about the future of Europe’s superjumbo, people familiar with the matter said.
The Gulf carrier, which has invested tens of billions of dollars in more than 100 A380s, has been struggling to finalise a deal to buy another 36 to keep assembly lines open, due to differences with engine maker Rolls-Royce.
Now, Airbus is looking closely at closing A380 factories sooner than expected as part of a reshuffle of orders, with Chief Executive Tom Enders unlikely to leave the situation unresolved when his mandate ends in April, they said.
A person familiar with the matter said Airbus was looking “extremely seriously” at setting the timetable for a shutdown but said no decision had been taken.
Airbus said in a statement after Reuters first published news of the talks that it “confirms it is in discussions with Emirates airline in relation to its A380 contract”. But it said details of negotiations were confidential.
Emirates and Rolls-Royce declined to comment.
Emirates announced the deal for up to 36 aircraft worth as much as $16 billion (£12 billion) at list prices a year ago, throwing a lifeline to the programme’s roughly 3,000 workers and securing its future for at least another decade.
The airline is an ardent supporter of the jet, which was designed with luxury features like bars and showers.
But sales of four-engined planes are tumbling as many airlines switch to smaller twin-engined jets like the A350 and Boeing 777 due to improvements in range and efficiency.
A year-long impasse between Emirates and Rolls-Royce over shortfalls in fuel savings has so far blocked the order.
Airbus is trying to broker a complex workaround which could see Emirates take smaller jets also powered by Rolls-Royce while it tries to secure homes for as many A380s as possible, with British Airways recently expressing interest.
Airbus has dangled the prospect of closing A380 production before, and industry sources say such manoeuvres can be a negotiating tactic to force the feuding parties to agree.
But time is running out for the A380 with few airlines willing to spend the sums invested by Emirates, which has made it a backbone of its global network alongside the Boeing 777.
The production line is “untenable”, a senior industry source said
A decision by Emirates to order the A350 would offer a respite for Airbus and its main engine partner Rolls-Royce after the Gulf carrier axed an order for the A380 in 2014.
Airbus and Rolls are keen to maintain a foothold with the Gulf carrier and prevent Boeing filling the gap with more of its General Electric-powered 777s.
(Reporting by Tim Hepher and Alexander Cornwell; Editing by Michel Rose and Edmund Blair)
Deliveries total 800 aircraft, 11 percent higher than in 2017
Net orders total 747, backlog increases to 7,577 aircraft
Airbus SE (stock exchange symbol: AIR) delivered 800 commercial aircraft to 93 customers in 2018, meeting its full year delivery guidance and setting a new company record. Deliveries were 11 percent higher than the previous record of 718 units, set in 2017. For the 16th year in a row now, Airbus has increased the number of commercial aircraft deliveries on an annual basis.
In total, the 2018 commercial aircraft deliveries comprise:
20 A220s (since it became part of the Airbus family in July 2018);
626 A320 Family (vs 558 in 2017), of which 386 were A320neo Family (vs 181 NEOs in 2017);
49 A330s (vs 67 in 2017) including the first three A330neo in 2018;
93 A350 XWBs (vs 78 in 2017);
12 A380s (vs 15 in 2017).
In terms of sales, Airbus achieved 747 net orders during 2018 compared with 1,109 net orders in 2017. At the end of 2018, the backlog of Airbus commercial aircraft reached a new industry record and stood at 7,577 aircraft, including 480 A220s, compared with 7,265 at the end of 2017.
“Despite significant operational challenges, Airbus continued its production ramp-up and delivered a record number of aircraft in 2018. I salute our teams around the globe who worked until the end of the year to meet our commitments,” said Guillaume Faury, President Airbus Commercial Aircraft. “I am equally pleased about the healthy order intake as it shows the underlying strength of the commercial aircraft market and the trust our customers are placing in us. My gratitude goes out to all of them for their ongoing support.” He added: “As we look to further increase our industrial efficiency, we will continue making the digitalisation of our business a key priority.”
Over the last 16 years, Airbus has steadily increased its production year-by-year with the final assembly lines in Hamburg, Toulouse, Tianjin and Mobile complemented by the addition of the A220 line in Mirabel, Canada, during 2018. A notable contribution to Airbus’ delivery increase in 2018 came from the final assembly lines in the US and China. For the top-selling A320 Family in particular, the Final Assembly Line (FAL) in Mobile, Alabama, saw its 100th delivery, and is now producing in excess of four units per month. Meanwhile, Airbus’ “FAL Asia” in Tianjin, China, achieved its 400th A320 delivery, while in Germany Airbus commenced operations of its new, fourth production line in Hamburg. Overall, the A320 programme is on track to achieve rate 60 per month for the A320 Family by mid-2019. The Airbus teams successfully reached an important industrial milestone for the A350, achieving the targeted rate of 10 aircraft per month.
Airbus will report Full Year 2018 financial results on 14 February 2019.
Footnote: The Full-Year 2018 net orders and backlog represent the contractual view. The Full-Year 2018 backlog value will be measured under IFRS 15 and will reflect the recoverable amount of revenues under these contracts. A significant reduction in order backlog value is expected mainly due to the adjustment for net prices versus list prices. The FY 2017 backlog will not be restated.
PARIS (Reuters) – Europe’s Airbus lost out to Boeing in 2018, breaking a five-year winning streak against its U.S. rival for the number of jet orders, slumping to its lowest share of the $150 billion jet market in six years, data showed on Wednesday.
Airbus posted 747 net 2018 orders, down 33 percent from the previous year, including 135 for the A220 jetliner which it took over from Canada’s Bombardier in July. Boeing beat Airbus for the first time since 2012 with 893 net orders.
Airbus delivered 800 jets, up 11 percent, including 20 of the small A220 model, leaving Boeing as the world’s largest planemaker by manufacturing volume for a seventh straight year.
Although Boeing missed its delivery target and Airbus had previously lowered its target due to strains on the industry’s global supply chain, strong demand for passenger jets expanded total deliveries by 8 percent, the fastest pace in six years.
Planemaking chief Guillaume Faury welcomed the deliveries, which set a company record, and a “healthy order intake,” with waiting lists for many new jets stretching for up to 7 years.
Insiders say the quest for new business has, however, been overshadowed in the past year by industrial problems, management changes and morale problems coinciding with a corruption probe.
A resurgent Boeing has been cashing in on greater availability and declining costs for its 787 Dreamliner, while struggling to contain its European rival in the lucrative segment for large narrowbody jets just above 200 seats.
The order figures underscore Airbus’s decision to take over the lightweight but loss-making Bombardier CSeries aircraft, generating 135 orders worth $12 billion at list prices.
Without that boost, Airbus took just 41 percent of the core market in which it competes with Boeing, the lowest since 2009.
Highlighting the pressure Airbus has been facing recently in the market for large, high-margin wide-body jets, the European company was outsold three to one by Boeing for a second year.
However it reached a targeted production rate of 10 aircraft a month for its wide-body A350, which competes with the 787 and larger 777, at the end of the year, company officials said.
Airbus also trimmed the order list for its slow-selling A380 superjumbo, officially cancelling an order for 10 from Hong Kong Airlines four years after Reuters first reported that the airline had axed the deal, triggering financial negotiations.
The world’s largest airliner is mostly dependent on Dubai’s Emirates as Airbus slows production to a trickle in the hope of a future upturn, though many airlines are for now backing smaller jets.
(Reporting by Tim Hepher, Editing by Dominique Vidalon and Elaine Hardcastle)
TAP Air Portugal has taken delivery of the world’s first new generation widebody A330neo and, as the launch airline, will be the first to benefit from the aircraft’s unbeatable operating economics, increased range, and Airbus’ new Airspace cabin offering passengers the best in class comfort. The Portuguese carrier will take delivery of a further 20 A330-900s in the coming years.
TAP Air Portugal’s first A330-900 is leased from Avolon. It features 298 seats in a comfortable three-class lay-out with 34 full-flat business class, 96 economy plus and 168 economy class seats. The Airspace by Airbus cabin offers more personal space, larger overhead storage bins, advanced cabin lighting and the latest generation in-flight entertainment system and connectivity. The aircraft will be deployed on routes from Portugal to the Americas and Africa.
“I am delighted to welcome the first Airbus A330-900 into our expanding fleet. Its unbeatable economics and efficiency will power our business forward,“ said Antonoaldo Neves, TAP Air Portugal CEO. “The A330neo will give us a lot of operational flexibility thanks to its commonality with the other Airbus aircraft in our fleet. This aircraft will be the first equipped with the new Airspace cabin, which is a new concept shaped to meet TAP’s ambition to offer the best product in the industry to our passengers,“ he added.
“Handing over the first ever A330neo to a long standing Airbus customer, TAP Air Portugal, is a very important milestone for Airbus,” said Guillaume Faury, President Airbus Commercial Aircraft. “Through continuous innovations, the A330neo, our newest widebody aircraft, will offer maximum value and efficiency to our customers and superior comfort to their passengers. This occasion marks another step forward to meeting our industry’s goal for sustainable aviation,” he added.
The A330neo is a true new generation aircraft building on the A330’s success and leveraging on A350 XWB technology. It incorporates the highly efficient new generation Rolls-Royce Trent 7000 engines, and a new higher span 3D optimised wing with new sharklets fully optimised for the best aerodynamic performance. Together these advances bring a significant reduction in fuel consumption of 25 percent compared with older generation competitor aircraft of a similar size. Moreover, new composite nacelles, a fully faired titanium pylon and zero-splice air inlet technology provide the A330-900 with state-of-the-art aerodynamics and acoustics .
Today, TAP Air Portugal operates an Airbus fleet of 72 aircraft (18 A330s, 4 A340s,and 50 A320 Family aircraft). The single-aisle fleet includes 22 A319ceo, 21 A320ceo and four A321ceo, one A320neo and two recently delivered A321neo.
The A330 is one of the most popular widebody families ever, having received over 1,700 orders from 120 customers. More than 1,380 A330s are flying with over 128 operators worldwide. The new A330neo is the latest addition to the leading Airbus widebody family, which also includes the A350 XWB and the A380, all featuring unmatched space and comfort combined with unprecedented efficiency levels and unrivalled range capability.
Move to expand A330-900neo order book to 35 from 25 addresses Delta’s near-to-medium-term widebody needs and reinforces commitment to fuel, economic and sustainable efficiency.
Delta Air Lines is adding 10 Airbus 330-900neo aircraft to its fleet under an agreement with Airbus and Rolls-Royce, expanding its order of the next-generation widebody jet from 25 to 35. The first delivery of the state-of-the-art aircraft, which is powered by next-generation and fuel-efficient engine technology, is expected next year.
“Expanding our A330 order book not only ensures that Delta’s near-to-medium-term widebody needs are taken care of, but also drives our strategic, measured international growth,” said Gil West, Delta’s Senior Executive Vice President and Chief Operating Officer. “The next-generation engine technology from Rolls-Royce which powers the A330neo provides compelling operating economics, superior fuel performance and the range and coverage for our transoceanic needs going forward.”
These changes are consistent with Delta’s long-term philosophy of investing 50 percent of operating cash flow back into the business, West said.
Delta will be the first U.S. airline to operate the next-generation A330-900neo, which will offer the latest in innovative design and technology for customers. It will be the first Delta aircraft to feature all cabins – Delta One suites, Delta Premium Select, Delta Comfort+ and Main Cabin. The jet also will be the first Delta aircraft to feature memory foam cushions throughout the aircraft for hours of comfort, and the first Delta widebody aircraft featuring its new wireless in-flight entertainment system in every seat.
Simultaneously, Delta has agreed to terms with Airbus to reduce its near-term A350-900 purchase commitment to a total of 15 aircraft from 25. The 10 previously on order A350 aircraft have been deferred to 2025-26 with certain flexibility rights including the right to convert these orders to A330-900s.
“The A350 has been a great success for our customers and our business,” West said. “A fleet of 15 of these world-class aircraft is the right current fit for Delta’s industry-leading global network, operational reliability and award-winning products and services.”
Delta currently operates 11 A350-900 aircraft and expects to take delivery of two A350s in 2019 and two in 2020.
In addition, Delta plans to retire older Boeing 767-300ERs in the years ahead as the aircraft reach the end of their serviceable life cycle.
PARIS (Reuters) – U.S. carrier Delta Air Lines (DAL.N) has emerged as the probable buyer for 10 Airbus A330neo jets worth $3 billion, industry sources said, in a boost for the becalmed European model.
Airbus (AIR.PA) announced an order for 10 of the 300-seat aircraft in its latest monthly order update on Friday, but withheld the name of the buyer for the Oct. 30 deal.
Two industry sources, asking not to be named, said Delta (DAL.N) was the buyer. A third said Delta had been looking to expand an existing order for 25 A330neo aircraft.
Airbus declined comment. Delta was not immediately available for comment.
If confirmed, the deal would mark the second order for the slow-selling A330neo in as many weeks after Kuwait Airways ordered eight of the long-haul planes in mid-October.
Airbus is aggressively seeking more orders for the latest version of its profitable A330 franchise after sales of the engine-upgraded A330neo model fell short of expectations in the face of heavy competition from the newer Boeing 787.
However, industry sources have questioned how far recent orders represent net new sales for the European giant, saying they could replace at least some earlier orders for the A350.
The new-generation A350 is a longer-term bet for Airbus and competes with the 787 and Boeing 777. But one market source said Airbus was willing to give up some orders for the newer plane in order to keep the A330neo afloat and prevent production cuts.
Airbus has given cautious signals that it is prepared to be flexible in both directions when offering combinations of the A330 and A350, sources said, though it cannot afford to lose too many orders or customers for the more strategic A350 plane.
The wide-body A330neo is part of a pair of upgraded aircraft – the other being the strong-selling A321neo narrowbody – that strategists say Airbus is trying to push into the market to reduce the space for a new 220-260 seat, mid-sized jet being studied by Boeing. A decision on that project is due next year.
Airbus is especially keen to continue A330-series production because it has been a major source of profits and cash.
Airbus also needs an aircraft like the 250-300 seat A330 to offer airlines a step-up into the wide-body market from its largest narrowbody, the A321neo, which holds up to 240 people.
Without it, Airbus’s smallest wide-body would be the 315-seat A350-900, which leaves a large gap in Airbus’s portfolio above the A321neo for rival Boeing (BA.N) to exploit.
(Reporting by Tim Hepher and Tracy Rucinski; Editing by Laurence Frost and Edmund Blair)
