Airbus A380, Once the Future of Aviation, May Cease Production (nytimes.com)
The days may be numbered for the world's largest passenger aircraft. An anonymous reader shares a report: Airbus, the European aerospace group that makes the A380 superjumbo, said on Monday that it would have to end production of the plane if its only major customer, Emirates, did not order more (Editor's note: the link may be paywalled; alternative source). The admission by John Leahy, the company's chief operating officer, was the latest indication that Airbus miscalculated more than two decades ago when it bet that clogged runways would create demand for larger planes that could deliver more people with fewer landing slots. Instead, airlines bypassed the major hubs and ordered midsize planes that could fly directly between regional airports.
[...] When Airbus started delivering the A380 a decade ago, after spending $25 billion to develop it, the company based near Toulouse, France, saw the plane as the solution to airport congestion and to increased demand for air travel. Only so many planes can land at an airport in any given day, so Airbus reasoned that planes carrying more people would allow airports to absorb more passengers. The A380 can carry more than 500 passengers while also offering amenities like showers, first-class suites and a bar.
[...] When Airbus started delivering the A380 a decade ago, after spending $25 billion to develop it, the company based near Toulouse, France, saw the plane as the solution to airport congestion and to increased demand for air travel. Only so many planes can land at an airport in any given day, so Airbus reasoned that planes carrying more people would allow airports to absorb more passengers. The A380 can carry more than 500 passengers while also offering amenities like showers, first-class suites and a bar.
So, it is not surprising - especially of the cost of mid-size planes decreases - that airlines would go this way.
Silence is a state of mime.
The general lesson may be the same as that behind the Concorde. There's not a massive market for people willing to pay a massive amount of money for travel by planes. That applies whether the increased cost is for incredible luxury or incredible speed. If this is what is going on, then this does not bode very well for ideas like Musk's point-to-point transit with the Big Falcon Rocket.
If you go back 20 years ago when the A380 was being proposed - Airbus confidently proclaimed that there would be a 1,300+ unit market for a huge four engine jet. Boeing predicted that, at best, there would be a 360 unit market.
The difference was based on the assumptions made by each manufacturer. Airbus, at the time, was pushing the A340 (four engine) over the A330 and getting reasonably good traction which lead them to think that four engines and more passengers was the way to go. Boeing had just finished the B777 and could see it eating into the B747 market - the B777 offered better economics for 250-350 passengers which Boeing decided was the optimal passenger size for long range.
It's interesting to see what happened as Airbus started to develop the A380, it gained a lot of good press and a gold plated launch customer in Emirates (to which Boeing responded with the B747-8 to show they were still in the market but wouldn't require a lot of development funds). Boeing sank their development money into the 7E7 (which became the B787), gained sales of almost a thousand sales before the first roll out and Airbus scrambled with the A350.
The A380 failed simply because Airbus misread the demand for the aircraft (along with the desire to have the bragging rights on the largest airliner out there) and Boeing had a better product roadmap for this space. Boeing is now finishing up the first the second generation B777 prototypes while Airbus is trying to finish the A350 line and revamp the A330.
The writing has been on the wall for the A380 for at least 5 years (arguably 10) and really the big question is when will Airbus decide to take the write-down on the lost development costs.
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