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All Nippon Airways or ANA has decided to back off from the Airbus 380 deal. The second largest airline in Japan has previously announced its interest to the soon-to-be largest aircraft in the world and would even become part of the aviation history if the transaction would push through. ANA was supposed to be the first airline company to receive the long delayed Airbus 380 and would probably also become the first airline to offer commercial flights of Airbus 380.

But the severance of the deal is not because of the long delay of the jumbo aircraft. This move was announced after ANA’s rival, Japan Airlines (JAL) decided to observe severe cost cutting which could save the company billions of yen in only a few years. JAL will cut cost by at least 100 billion yen in three years. Because of the corporate move ANA decides to do the same – they have unveiled a plan of spending reduction which could save them up to 200 billion yen in four years.

Aside from the weakening worldwide economy, the demand for travel has also weakened which means travel has gone down exponentially in and out of Japan. The airlines have to make significant costs in their capital spending or else face dire economic consequences.

But this severance of transaction doesn’t mean that ANA is completely discarding the idea of having an Airbus 380 as part of their fleet. They are just suspending the plan for years or at least until the world will be back again to its traveling feet after the financial downturn.