Airbus Terminates Skymark A380 Order

By Jack Harty / Published July 29, 2014

On April 8, 2014, Skymark Airlines’ first A380 successfully A380 MSN162 SKYMARK TRANSFER TO  STATION 30made its maiden flight, and the aircraft was scheduled to get painted and its cabin installed in Hamburg, Germany shortly after.

However, Airbus has terminated the $1.7 billion order.

Skymark has had some financial troubles during the last year due to a weaker yen and tough competition, and the carrier says it has been in talks with Airbus to cancel the order. The carrier says Airbus had requested that it become an affiliate with a larger airline as a condition for altering the contract and that they asked for a cancellation fee after the carrier rejected the request.

According to the Wall Street Journal, “Airbus terminated the contract when Skymark made it clear that it was not going to perform its contractual obligations,” an Airbus spokesperson said in an email.

“We cannot accept a demand that would shake management independence,” Skymark said in a statement.

Even though Skymark Airlines only ordered six aircraft, the order was big for Airbus as it struggled to sell its A380s in Japan.

Unfortunately, this is the latest blow in the Airbus A380 program. The manufacturer has not been able to attract new customers in the last two years, and just recently, Qatar Airways has rejected delivery of its first three A380s.

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Contact the author at Jack.Harty@Airchive.com.

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