Emirates Abandons Huge Plane Order, Hitting Airbus Shares

TOULOUSE, France -- Emirates airline delivered a huge blow to European aerospace group Airbus (IW 1000/52) on Wednesday, cancelling an order for 70 new-generation A350 airliners, which analysts estimate represents about a tenth of the aircraft maker's 2014 orders.

The long-distance aircraft, due to go into service this year, is the Airbus flagship project of the moment to compete with the Boeing (IW 500/14) 787, which has been flying since 2011.

The size of the cancellation is the biggest ever by a prestigious customer for a civil airliner.

Airbus said that the cancellation followed an order placed by Emirates at the Dubai air show in November for an extra 50 A380 superjumbo planes.

The cancellation decision was made following "ongoing discussions with the airline in light of their fleet requirement review," Airbus said.

Emirates had ordered 50 A350-900 and 20 stretched A350-1000 aircraft in 2007, marking the second-biggest order by volume for the A350 plane after 80 ordered by Qatar Airways.

Singapore Airlines has also ordered 70 A350 planes.

Scott Hamilton said that the cancellation could leave a gap in the Emirates fleet. That would give Boeing an opportunity to sell its 777-300R model, which is available for delivery from 2017.

Menard said that in all probability Emirates had decided to streamline its fleet and focus on the Airbus A380 and the Boeing 777 series.

Copyright Agence France-Presse, 2014