Finance

According to Willie Walsh, CEO of IAG, there would be no negotiations today between British Airways and Airbus for the additional A380 purchase. (Credits: Peter Nicholls) IAG, the parent of British Airways, Iberia, Aer Lingus and Vueling, consider buying more if Airbus A380 made an effort on the price of very large aircraft, said Tuesday Willie Walsh, CEO of Air Group.

To justify poor sales of the A380, Airbus has often pointed to fears of airlines not being able to fill enough profitably this aircraft, with the exception of its first customer, Emirates, which has ordered close 180 copies (including options), about half of the backlog.

“When an airline knows fill, this device is extremely economical. It has potential, “had particular said it two years ago in La Tribune Bregier, former president of Commercial Aircraft Airbus.

A380 is 445 million at list prices

Always very cash, Willie Walsh, CEO of IAG Group, parent of British Airways, Iberia, Aer Lingus and Vueling, is clearly not of that opinion. He who has bought 12 copies in 2007 the time when he led British Airways, blames the tariff policy of Airbus.

“The price offered by Airbus in the past is unacceptable for us,” he told Reuters on the sidelines of a conference organized by Airlines for Europe, an association of European airlines which groups including Air France-KLM, Lufthansa, IAG, Ryanair, and Easyjet.

At list prices (no company pays), an A380 has sold 445 million.
“We have very clearly told Airbus that if he wants to sell the A380, it must be energetic on price and when he knows how to sell the plane, he will only let us know and we will be ready to discuss”.

British Airways is not negotiating with Airbus

This is not the first time that Willie Walsh denounced the price of the A380. In 2016, he had already deplored excessive prices by threatening to resort to used aircraft. Something he has not done so far.
According to Willie Walsh, there is no negotiation today between British Airways and Airbus for the additional A380 purchase. It thus denies the information from Bloomberg in January that claimed that the air group was in talks with Airbus to purchase additional A380s. Or maybe he plays on words, discussions are not negotiations.

British Airways has the ideal profile for the A380. She has one hand the largest fleet of B747 aircraft that came to compete with the A380 at its launch in 2000, and is based on the other hand, at Heathrow Airport will remain congested in the absence of the third runway, which has a 50% chance to see the day, according to Willie Walsh. The A380 is, therefore, at present, the only way to grow into BA.

After signing the sale of 36 aircraft to Emirates Airbus has ensured the maintenance of production for 10 years, at very low rates. The manufacturer relies on other commands to be able to meet the throughput and reduce production costs.