British Airways and Iberia-owner IAG is reported to have pulled out of talks on a deal with Airbus to order up to 10 A380s.
IAG has been in discussions with Airbus and Boeing about potential orders for new long-haul, widebody aircraft for months. Business news service Bloomberg reported the group has now dropped out of negotiations with the European manufacturer.
BA already has 12 of the 500-plus seat A380s produced by Airbus and had signalled its willingness to order more since Airbus confirmed plans to continue production of the aircraft.
In March, IAG chief executive Willie Walsh called for Airbus to lower its price for the A380, saying: “The pricing Airbus has offered in the past is unacceptable to us.”
Walsh said: “We’ve said very clearly to Airbus if they want to sell A380s they need to be aggressive on pricing and when they work out how to sell the aircraft, knock on our door and we’ll talk to them.”
Continued production of the A380 ‘superjumbo’ had been in doubt until Gulf carrier Emirates agreed to order another 36 of the aircraft, valued at $16 billion, in January.
Emirates already operates more than 100 A380s.
However, Airbus has confirmed plans to reduce production of the aircraft amid the absence of other orders. It will deliver just 12 A380s this year, down from 15 last year, eight in 2019 and as few as six in 2020.
Walsh hinted at his frustration with Airbus in early May when he said: “We continue to be in dialogue with Boeing and Airbus on widebody aircraft. We found Boeing to be particularly constructive in the dialogue of late.”
IAG revealed it was considering leasing additional A380s in January, when Walsh said: “We have options on A380s, but we’re not going to exercise them because they are too expensive.
“We see the option of leasing them second hand as an attractive opportunity.”