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By Bjorn Fehrm

Introduction

Jan. 12, 2015: One of the subjects which is sure to come up on Airbus annual press conference on Tuesday the 13^th in Toulouse will be when and how Airbus will re-engine the A380.

Airbus Commercial CEO Fabrice Bregier vowed during the Airbus Group Global Investors Day last month that an A380neo is coming.

There is much speculation around this subject as the business case of re-engineering an aircraft that is selling at such low numbers is difficult to get to close. The business case is difficult to make work for Airbus (such a project will cost in the order of $2 billion) but it will be equally hard for the engine manufacturers to offer engines that have enough efficiency gain to make the overall project feasible from an efficiency improvement perspective.

Summary

• A380 Classic equals Boeing 777-300ER seat fuel costs.
• Boeing 777-9 beats A380 on CASM, an A380neo regains the advantage.
• Engine makers face hard choices to retain dominance or to broaden market penetration.