Airbus, a leading aircraft manufacturer, suffered an unexpected reversal for its newest aircraft when Dubai's Emirates cancelled a 70-plane A350 order. According to a spokesman for Emirates, the decision to walk away from the deal was because the company is reviewing its fleet requirements. The real reason has been unknown so far. Both parties declined to comment on the situation.
It is noteworthy that Emirates was among the first buyers for the A350 when it placed the order for 50 A350-900s and 20 A350-1000s in 2007. The deal was estimated at $16 billion. Experts counted that it would be worth close to $22 billion if placed now. Under the deal’s terms, Emirates' A350s were due for delivery from 2019. However, taking into account the cancellation, the terms do not matter now. The market reaction was predictable with Airbus shares falling more than 4%.
However, the airline said it is ready to continue to cooperate with the aircraft manufacturer and it proved that by ordering an extra fifty A380 planes at the latest Dubai Airshow. In a statement, the company said that it has 742 orders for A350 planes and expects the order book to continue growing. According to experts, the line of Airbus superjumbo airplanes is a serious competitor for Boeing 777 and 787 Dreamliner. The presentation of the first Airbus A350 aircrafts will take place at the Qatar Airways air show in the fourth quarter of this year.