Bloomberg News
Emirates, the world's largest international airline, is in talks with Airbus SAS to purchase as many as 50 A380 superjumbos, people familiar with the negotiations said.
The order, valued at about $20 billion at list price, may be signed as early as tomorrow on the first day of the Dubai Air Show, said the people, who asked not to be named because details are private. Emirates President Tim Clark has said previously that he would like to buy about 30 additional A380s.
A transaction of that size would be a record for the A380, which was at risk of ending 2013 without a deal. Instead, Airbus can now make the year the most successful for its superjumbo should leasing company Doric firm up its plan to buy 20 units, which it announced in June. Emirates is already the biggest customer for the Airbus flagship with orders for 90 jets and had taken delivery of 38 by the end of October.
'There are obviously very exciting Airbus deals underway,' U.K. Prime Minister David Cameron told reporters in Dubai today. 'Remember that every second a plane takes off somewhere in the world that's got wings made in Britain, landing gear made in Britain, many of them of course having Rolls Royce engines -- this is a real area of expertise, so good news on Airbus.'
Beating Berlin
The boost comes after Airbus Chief Financial Officer Harald Wilhelm said this week the Toulouse, France-based company may need to examine whether to reduce A380 output, with unsold production slots as early as 2015. Spokesmen for Airbus and Emirates said they had no comment, citing confidentiality agreements with business partners.
Emirates was also the buyer of the prior record purchase, committing to taking 32 jets at the Berlin Air Show in 2010. With the additional purchase, the Middle Eastern carrier would have signed for more than 50 percent of all A380s sold. Customers typically get discounts to list prices.
The planemaker was bracing for a third straight year in which it failed to meet order targets after Deutsche Lufthansa AG (LHA) canceled a commitment to take three aircraft in September. Airbus had a backlog of 144 planes at the end of last month.
Airbus is reversing a string of A380 setbacks after Air France-KLM (AF) Group, Europe's largest carrier, followed Lufthansa's cancellations by saying it may drop two superjumbos for smaller planes. Virgin Atlantic Airways Ltd. has said it can't be sure to take any of its six A380s on order, while Japan's Skymark Airlines Inc. (9204) said this month it still needs financing for the planes it wants.
has also struggled to book sales for its rival 747-8, and has twice reduced output for the plane this year. Boeing Commercial Airplanes President Ray Conner told reporters in Dubai he sees signs the market may start rebounding next year to allow build rates to rise from 1.5 units a month now.
To contact the reporter on this story: Robert Wall in London at rwall6@bloomberg.net
To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net
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