Airbus Group SE is likely to phase out production of the A380 superjumbo jet if it loses a key order from Dubai's Emirates, Reuters reported, citing three people familiar with the matter.
"If there is no Emirates deal, Airbus will start the process of ending A380 production," Reuters quoted a person briefed on the plans as saying. Reuters said a supplier added that the move is logical due to "weak demand."
Talks between the two companies over a new order for 36 superjumbos worth $16 billion broke down last month at the Dubai Airshow. Although the talks were said to have resumed, Reuters said, it is still unclear whether a deal will be reached.
Emirates is seeking assurances that Airbus will continue building the planes for the next ten years to safeguard its financial commitment, Reuters said.
Industry sources reportedly said that an Emirates order will shore up production and provide a cushion that would allow Airbus to market the A380 to other carriers.
The A380, the world's largest jetliner, was developed at a cost of 11 billion euros to carry as many as 500 passengers. Emirates is the largest customer for the A380 aircraft, according to Reuters.