Unexpected Jumbo order from Emirates

Emirates became a lifesaver of Airbus as they ordered 36 extra Airbus A380s, allowing Airbus' flagship jetliner to survive. However, it is yet to confirm that Airbus can receive 36 orders. The Dubai-based carrier has only confirmed to buy 20 of the planes, and retained an option to take 16 more. Deliveries will start in 2020 and the value of the deal is $16 billion at current list prices.

It is unexpected to see Emirates making this 16 billion deal. The double-decker A380 is very expensive to run, and only really makes commercial sense on fully-booked flights. And now Emirates already being disturbed by overcapacity problems, we are not sure how Emirates will configure those aircrafts.

According to Emirates, these new A380s will be used as fleet replacements. The oldest A380 in Emirates fleet is 9 years old. The carrier has previously stated that no A380 in their fleet would be retired in less than 12 years. They originally planned to start retiring A380s from 2020. Emirates has a reputation for having one of the lowest average-age fleet in the business, thought today to be around six years.

Airbus has only delivered 222 of them since they entered service in 2007. The jumbo cannot receive on single order in 2017, while their rival, Boeing, recieved 14 net orders last year (5 747-8I, 9 747-8F)

Emirates is far and away the biggest customer for the A380. Without its backing, Airbus would eventually have had to close down the production line in Toulouse altogether. Now the programme has the life support it needs.