Future of A380 hangs on Emirates amid rumors of production cuts

It was reported on Thursday that Airbus is considering cutting A380 production. (Reuters)
Updated 15 December 2017
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Future of A380 hangs on Emirates amid rumors of production cuts

LONDON: The future of Airbus’ A380 depends to a large extent on Emirates, the Dubai carrier that is by far the aircraft maker’s largest customer, analysts told Arab News.
Airbus was upstaged at the recent Dubai Airshow when instead of an expected announcement that Emirates would order 36 of Airbus’ superjumbos, it disclosed an order with arch-rival Boeing for 40 787s at a list price of $15 billion. It is not clear when or if Emirates will order more A380s, the mainstay of its fleet.
The battle between the A380 and 787 has been going on for years with the former being bigger and able to carry more passengers, but the latter sleeker and more energy efficient. The two companies are also promoting two business models, with the A380 designed to fly to a hub such as Dubai for onward travel, while Boeing has bet on passengers preferring to fly “point-to-point.”
That said, the hub model could still be valid, but with smaller aircraft using it, Tim Coombs, managing director at Aviation Economics, told Arab News.
Reuters reported on Thursday that Airbus was considering cutting production to six or seven planes a year. But it had not made a final decision on the matter, a top executive told the news agency, amid growing question marks over the future of the double-decker jet.
The A380 has battled against sluggish sales for some time and has previously announced plans to lower output to 12 aircraft in 2018 and eight in 2019, compared with an annual peak of 30.
Coombs said: “Without the support of Emirates, the A380 program would be a bit of a disaster as Airbus has failed to sell the carrier, in any great number, to other airline networks.” He said Emirates and the A380 project were “inexorably linked.”
“It’s not healthy from Airbus’ point of view that they are so reliant on one carrier,” he added.
“But I think they have an order book for other aircraft to justify a cut in production of the A380.”
“Every other aircraft in their production line has probably got a seven-year backlog in orders from other carriers, but that’s not the case with the A380.”
Chris Tarry, an airlines analyst at CTAIRA said, “Airbus is clearly looking at what the future rate of delivery is going to be, and it would be logical and sensible to adjust your production to what you are going to sell.”
He added: “Clearly the A380 hasn’t sold as well as when the plan was put together all those years ago, the market has changed and the reality is that you can now move passengers on a new-generation, smaller aircraft as economically as on a larger one. The A380 was conceived maybe 30 years ago, but the markets move on.”
Airbus has faced pressure on other fronts this year, with engine delays on its popular A320neo single-aisle carrier, and having to cope with the impact of corruption investigations. Denis Ranque, chairman of Airbus, told the Financial Times on Thursday that senior management will have to change after a raft of investigations that have rocked Airbus to the core.
“There is no strict timeline,” Ranque said in an interview with the FT. “That enables us to make a staggered and reasonable approach to this. Some changes will be needed but it is far too early to say when, who and how.” 
Airbus was said to be currently strengthening its compliance procedures in the wake of allegations about its use of middlemen to win aircraft deals. It is facing probes in the UK, France, Germany and Austria.

 

Saudi Arabia, Japan trade rises 38% between 2016 and 2024, minister says

Updated 11 January 2026
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Saudi Arabia, Japan trade rises 38% between 2016 and 2024, minister says

RIYADH: Trade between Saudi Arabia and Japan has increased by 38 percent between 2016 and 2024 to reach SR138 billion ($36 billion), the Kingdom’s investment minister revealed.

Speaking at the Saudi-Japanese Ministerial Investment Forum 2026, Khalid Al-Falih explained that this makes the Asian country the Kingdom’s third-largest trading partner, according to Asharq Bloomberg.

This falls in line with the fact that Saudi Arabia has been a very important country for Japan from the viewpoint of its energy security, having been a stable supplier of crude oil for many years.

It also aligns well with how Japan is fully committed to supporting Vision 2030 by sharing its knowledge and advanced technologies.

“This trade is dominated by the Kingdom's exports of energy products, specifically oil, gas, and their derivatives. We certainly look forward to the Saudi private sector increasing trade with Japan, particularly in high-tech Japanese products,” Al-Falih said.

He added: “As for investment, Japanese investment in the Kingdom is good and strong, but we look forward to raising the level of Japanese investments in the Kingdom. Today, the Kingdom offers promising opportunities for Japanese companies in several fields, including the traditional sector that links the two economies: energy.”

The minister went on to note that additional sectors that both countries can also collaborate in include green and blue hydrogen, investments in advanced industries, health, food security, innovation, entrepreneurship, among others.

During his speech, Al-Falih shed light on how the Kingdom’s pavilion at Expo 2025 in Osaka achieved remarkable success, with the exhibition receiving more than 3 million visitors, reflecting the Japanese public’s interest in Saudi Arabia.

“The pavilion also organized approximately 700 new business events, several each day, including 88 major investment events led by the Ministry of Investment. Today, as we prepare for the upcoming Expo 2030, we look forward to building upon Japan’s achievements,” he said.

The minister added: “During our visit to Japan, we agreed to establish a partnership to transfer the remarkable Japanese experience from Expo Osaka 2025 to Expo Riyadh 2030. I am certain that the Japanese pavilion at Expo Riyadh will rival the Saudi pavilion at Expo Osaka in terms of organization, innovation, and visitor turnout.”

Al-Falih also shed light on how Saudi-Japanese relations celebrated their 70th anniversary last year, and today marks the 71st year of these relations as well as how they have flourished over the decades, moving from one strategic level to an even higher one.