AXPLORER

For a year, Emirates has been negotiating with Rolls-Royce
about the engines of the latest A380 order lot. 
Now the airline could rewrite its contract to 
smaller A350, with far-reaching consequences for 
the entire A380 program.The news agency Bloomberg 
had reported on Thursday evening, citing negotiating circles, 
Emirates consider rewriting part of their announced A380 
order on smaller A350. A year ago, Emirates announced a 
"firm" order for 20 more A380s and 16 options in Dubai. 
This order would have utilized A380 production for the 
foreseeable future and kept the program alive. But if the 
announced order can not be realized, the A380 threatens 
the early exit, because too few new orders are received. 
Although a well-known new customer for three aircraft was 
won with ANA, the remaining orders, but some of them are 
considered "card-rich", are not enough for a longer-term 
program future. Airbus had already lowered the production 
rate to 0.5 aircraft per month, commercially the lowest, 
justifiable measure. 
The tug-of-war over the signing of the Emirates contract 
is said to be about the Airline's required improvements in 
Rolls-Royce Trent engines. Supposedly, the Dubaier sign 
their reordering only if Rolls-Royce contractually guaranteed 
them a tailor-made "Performance Improvement Package". 
Rolls-Royce, however, is busy with the costly aftermath of 
the Trent engine problems on the Dreamliner and the 
consequences of Brexit and is now reluctant to make that commitment. 
Emirates often operates its A380 in extreme heat in Dubai on 
extreme long-haul routes and requires maximum performance. 
At Airbus, aircraft sales are generally negotiated separately 
from the engines. The customer negotiates and orders the engines 
selected by him independently of the actual aircraft. Only with 
a signed package will the aircraft be built. Airbus merely 
confirmed on Thursday that it was in discussions with its 
customer, Emirates Airline, about its A380 contract. 
Details of all customer discussions are confidential and would not be mentioned. 
Meanwhile, this past spring, Airbus is transferring leadership 
from Tom Enders to Guillaume Faury, who will join the Group 
on April 10. This is an important moment for the promulgation 
of policy decisions, such as for any A380 program end. 
The Airbus Annual Press Conference will be held in 
Toulouse in 14 days.