Friday, December 26, 2025

Emirates mistake on betting entire business on Airbus 380, why bigger is not necessarily better or do not put your eggs in one basket

Nation building via learning and being the best in business

Emirates is biggest buyer of Airbus 380  about 100 of them.  They are Airbus biggest customer.   Each one costing about $300 each   

But because of many buyers electing to buy more fuel efficient two engined aircraft for greater flexibility and dwindling number of air travelers,  Airbus has been forced to discontinue Airbus 380 production.  This meant entire supply chain cities (ecosystem) vanished making it problematic for Emirates to obtain parts.

The 380s made Emirates long haul luxury travel very profitable.  Now it is facing huge problem because of changed air travel patterns and the inability to get its parts.  It now buys third party suppliers who just strip old planes for parts, or even bought seat manufacturing plants  

Would you have gone the Emirates way if you had trillions to spend?


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