During the Farnborough Air Show, Airbus announced a production rate cut for the A380, reducing production to one aircraft per month. This rate cut reflects the waning backlog for the aircraft, which has yet to emerge as a favorite among airlines, although it is a favorite among passengers. This rate cut also buys time for Airbus, and leasing company Amedeo, to garner orders for the A380 should demand begin to increase for the type.
Has the A380 program peaked? We don’t think so and offer this report (buy it here) laying out our thinking.