Airbus’s Emirates Deal to Save A380 Jumbo Is Said to Stall - Bloomberg

Airbus’s Emirates Deal to Save A380 Jumbo Is Said to Stall - Bloomberg:

Airbus SE’s latest order for the A380 superjumbo has reached an impasse amid drawn-out talks involving the engines, according to people familiar with the matter, possibly imperiling a crucial deal seen as a life-saver for the giant aircraft.

The $16 billion accord for as many as 36 additional double-decker aircraft has hit a snag as Emirates negotiates with Rolls-Royce Holdings Plc on price and fuel burn on an engine that’s already falling short of performance parameters, said the people, who asked not to be named discussing confidential information. The companies have missed a deadline to select the engines, possibly delaying first delivery in 2020 -- and even threatening the deal outright.

Emirates, the A380’s only major customer, came to the rescue in January, signing on for more after months of tense back-and-forth. The Dubai carrier accounts for about half the total order book, having switched to Rolls-Royce as its engine provider a few years ago after using a joint venture between General Electric Co. and Pratt & Whitney on the first batch of the aircraft.