“The global economy will take care of you.”
So says Tim Clark, the president of Emirates airline. His, “what me worry?” words of confidence were for Airbus, the aircraft manufacturer responsible for the A380.
Seven years ago, the A380 was big news. Media gleefully reported on the plane’s immense proportions, with 6,000 square feet of deck space, a full bar, seating for 500 passengers, and a wingspan the length of a football field. Dwarfing even the biggest jumbo jets, the plane is a technological marvel, able to bring it’s 550-ton weight to cruising altitude in just over ten minutes. Passenger reviews are very positive, too – it’s ascent and descent are smoother than that of the average-sized plane.
The problem is, nobody is buying it.
Emirates is one of only 11 airlines that have placed orders for the mega plane, and they’ve ordered nearly half of them (138 of 318 total orders). Making the planes the luxurious centerpiece of Emirates’ fleet, Tim Clark says he would buy more if Airbus could make them faster.
Maybe Mr Clark is so happy because he is getting the planes at a bargain price. Originally listed at $400m, the A380 can now be purchased as low as $200m.
Obviously some of this struggle can be attributed to the sheer timing of the plane’s release. A super-large commuter jet hasn’t been such a hot investment for struggling airlines serving a public that is just now starting to feel more confidence in the economy. And the A380 isn’t so dainty with fuel, either.
One wonders though if a larger mistake was made. What would you prefer for your flight? A massive luxurious plane between two major airports as the main portion of your trip? Or a small craft that might be able to land at an airport closer to your final destination?
Either way, Airbus is looking now to just break even. It goes to show that advances in technology are not everything – you have to make sure you’re building something that people want. Or at least have a Tim Clark in your organization, whose checkbook is as enthusiastic as he is.
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