A380 Customers Want Earlier Delivery Slots

Demand for the Airbus A380 is outstripping the planned production ramp-up, says Airbus, with existing and potential customers pushing for earlier delivery slots than are currently available. “I’d love to have earlier A380 positions right now,” says Airbus Chief Operating Officer-Customers John Leahy. “I’m essentially sold out until the end of 2014, and I’ve got open positions in 2015, but I’ve still got a lot sold in that year.” Addressing an EADS investor forum in Toulouse this week, Leahy said that potential A380 customers were disappointed that they faced the prospect of at least a four-year wait to receive their first aircraft. Leahy says that with the lead time on buyer-furnished equipment around two years, he would be “delighted” if he could obtain open delivery slots in 2013-2014. “Even If I didn’t sell them—and I would try to save some to sell—once the [existing customer] airlines knew that we had some, you’d see some people try to move into those slots.” Airbus will deliver about 20 A380s this year, and monthly output is gradually ramping up from two aircraft to reach three by 2012. Meanwhile, Leahy downplays the A380’s exposure to one customer—Emirates—whose 90 orders represent almost 40% of the entire order book. “I wouldn’t say we have an overexposure. We have a significant exposure to Emirates,” he says. “As a manufacturer, what you are exposed to is the airplanes that are in production. I haven’t bought any aluminum yet for an airplane to be delivered in 2013 or 2014.” Leahy adds: “You’ve got to bet on the winners, and Emirates is a good horse to bet on.”