Monday, October 30, 2006
More Ominous News for Airbus: Emirates Cancels Order for TEN Airplanes
Citing much higher operating costs than the equivalent airplane made by Boeing, on Friday Emirates Airlines canceled an order for ten Airbus 340-600 airplane, with a list value of $2.25 billion.
The A340-600 (shown at right in the Virgin Atlantic livery) is the largest airplane currently in Airbus's fleet. It typically seats about 380 passengers and has a range of about 7,900 nautical miles. But the A340-600 also has four engines, which makes it much more expensive to operate with the current insane fuel prices.
Meanwhile, Boeing's competing airplane is the 777-300ER (shown at left in the Emirates livery). It seats 365 people and has virtually the same range as its Airbus counterpart--it can go 7,880 nautical miles. But the big difference between it and the Airbus is that the 777 only has two engines, which is far less costly to operate.
Given the significant cost savings, most airlines, like Emirates, are choosing the 777 over the A340. The A340 was yet another miscalculation by Airbus (a subject for another post).
The bigger story, however, is that this could be an even more ominous sign for Airbus in light of the substantial delays in the super-jumbo A380 project. Emirates is a launch customer and has ordered more A380s than anyone, and stand to lose a great deal from the delays. Some industry experts believe that it's possible (but not likely) that Emirates may cancel their order for the A380.
The A340-600 (shown at right in the Virgin Atlantic livery) is the largest airplane currently in Airbus's fleet. It typically seats about 380 passengers and has a range of about 7,900 nautical miles. But the A340-600 also has four engines, which makes it much more expensive to operate with the current insane fuel prices.
Meanwhile, Boeing's competing airplane is the 777-300ER (shown at left in the Emirates livery). It seats 365 people and has virtually the same range as its Airbus counterpart--it can go 7,880 nautical miles. But the big difference between it and the Airbus is that the 777 only has two engines, which is far less costly to operate.Given the significant cost savings, most airlines, like Emirates, are choosing the 777 over the A340. The A340 was yet another miscalculation by Airbus (a subject for another post).
The bigger story, however, is that this could be an even more ominous sign for Airbus in light of the substantial delays in the super-jumbo A380 project. Emirates is a launch customer and has ordered more A380s than anyone, and stand to lose a great deal from the delays. Some industry experts believe that it's possible (but not likely) that Emirates may cancel their order for the A380.
