Airbus confirms more A380 production cuts

Airbus has confirmed it is preparing a further reduction of A380 output, as the company struggles to finalize more orders for the aircraft.

“It is likely that we may have to go below Rate 1 [a rate of producing one aircraft per month],” Airbus VP-programs Didier Evrard said on the sidelines of the IATA AGM in Cancun.

The company is working to mitigate and minimize the financial impact that the measure would cause.

Airbus is in the process of reducing A380 production from 27 aircraft in 2016 to a target of 12 in 2018. The manufacturer expects to build 15 A380s this year, CFO Harald Wilhelm said when Airbus released its first-quarter results earlier this year. Airbus Commercial Aircraft president Fabrice Brégier has said A380 production must be reduced further if there are no additional orders before the end of 2017—as there are still manufacturing slots unfilled in 2019.

Airbus sales chief John Leahy said the company is working at achieving breakeven on the program at rates below one aircraft per month. However, Leahy insisted Airbus is committed to building the A380 in the long term. “The program will be around for 20-25-30 years,” he said.

Airbus is working on several proposals to enhance the attractiveness of the aircraft. It is already offering the A380 with a revised cabin layout that allows the installation of up to 80 additional seats. Separately, Brégier also confirmed it is studying new winglets instead of the current wingtip fences. The new devices could reduce fuel burn by 3%-4%, industry sources estimate. Airbus hopes to attract more orders from existing customers and new ones, without the heavy investment that would be required for the now-shelved A380neo.