Airbus, Emirates Firm 20 A380s in $16 Billion Order

(Bloomberg) -- Airbus SE and Emirates signed a contract Sunday for delivery of an additional 20 double-decker airplanes, the airline said in a statement, ensuring production of the giant jet will continue for at least the next decade.

The Dubai-based carrier, already the biggest A380 customer, had signed an outline agreement for the planes on Jan. 18 with an option to buy 16 more, worth $16 billion at list prices. The contract was signed on the sidelines of the World Government Summit in Dubai.

“This agreement underscores our commitment to the A380 program, providing stability to the A380 production line and supporting tens of thousands of high-value jobs,” Emirates Chairman Sheikh Ahmed bin Saeed Al Maktoum said in a statement. “We look forward to continue working with Airbus to further enhance the aircraft and onboard product.”

The deal will extend A380 production until 2029 if Emirates takes all of the planes, according to Airbus, which as recently as mid-January had acknowledged that the program could be terminated without a new sale soon. The carrier had scuttled a deal for the same number of aircraft toward the end of last year amid doubts about the manufacturer’s dedication to improving the plane.

The new planes will be delivered from 2020, with engine options being evaluated. Rolls-Royce Holdings Plc is supplying turbines as part of Emirates’s most recent order for 50 A380s, while the Engine Alliance of General Electric Co. and Pratt & Whitney powered the previous 90.

If Emirates signs off on the full deal it will have committed to a total of 178 A380s, or more than half of all orders for the plane worldwide. The carrier currently has 101 superjumbos in its fleet, and many older aircraft will have been phased out before the new batch arrives.

To contact the reporters on this story: Steve Geimann in London at sgeimann@bloomberg.net, Benjamin Katz in London at bkatz38@bloomberg.net.

To contact the editors responsible for this story: Bernard Kohn at bkohn2@bloomberg.net, Steve Geimann, Brian Wingfield

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