Emirates Airlines has cancelled orders worth $16 billion for 70 of Airbus’s new A350 wide-body aircraft. The surprise announcement came in on 11 June Wednesday by Airbus who said that Emirates had scrapped its order of 50 A350-900s and 20 A350-1000s. The order represented nine per cent of all A350XWB orders for Airbus. News reports also indicated that Airbus shares fell four per cent following the news. Rolls-Royce, the sole manufacturer and provider of engines for the A350, has lost jet engine orders worth about $4.37 billion with this cancellation as well.
Emirates has been the second largest customer for the aircraft along with Singapore Airlines. Both airlines had ordered 70 of the planes. The massive Airbus order by Emirates was done together with an order of 150 of Boeing’s B777Xs . The airline took options for 50 of those planes at the same time. Emirates has been largest customer for Airbus’s A380 and for Boeing’s existing B777s.
Whatever Emirate’s reasons are, the way the current scenario will pan out is that it would continue to rely on Airbus’s A380, followed by the B777s, B777Xs, and possibly, the B787 for routes in which smaller planes are needed, news reports also said.