By Robert Wall 
 

Australia's Qantas Airways Ltd. (QAN.AU ) will formally cancel an order for eight more Airbus SE (AIR.FR) A380 superjumbos that the carrier had long signaled it wouldn't introduce into service.

The move further shrinks the Airbus backlog of order for its struggling flagship plane, and comes days after Airbus said it was in talks with Emirates Airline--the biggest A380 buyer--over existing contracts for the plane, raising the prospect that the Dubai-based carrier may trim its commitment. Emirates had no comment.

Qantas, in a statement, said that after discussions with Airbus it had formalized the decision not to take the eight aircraft ordered in 2006.

"These aircraft have not been part of the airline's fleet and network plans for some time," the Australian carrier said, adding that it would upgrade the 12 A380s it has in service starting this year.

Airbus confirmed the contract change and said it would be reflected in its January orderbook.

The cancellation leaves Airbus with a backlog of fewer than 80 of its A380s, most of them with Emirates. That includes an order for 20 A380s from lessor Amedeo, which hasn't placed the planes or fixed a delivery plan.

Airbus in December formally erased from its order book an order for 10 A380s from an undisclosed buyer.

Amid weak demand, Airbus has repeatedly slashed production plans for the double-decker plane. It delivered only 12 last year and plans to further lower output to six planes a year.

Airlines have shied away from taking the massive plane--which can seat more than 55 passengers--out of fear that they won't be able to sell all those seats.

Qantas said it is proceeding with other fleet plans, including introducing more Boeing Co. (BA) 787 Dreamliners this year.

 

Write to Robert Wall at robert.wall@wsj.com

 

(END) Dow Jones Newswires

February 07, 2019 03:40 ET (08:40 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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