Airbus to stop production of A380

European aircraft manufacturer Airbus on Thursday said it would stop making the A380 superjumbo, the world's largest passenger aircraft.

The last deliveries of the aircraft would take place in 2021, Airbus said in a statement. The company has struggled to compete with smaller, more fuel efficient aircraft.

On Thursday Airbus said Dubai-based airline Emirates would cut its A380 order book to 123 aircraft from 162.

"As a result of this decision we have no substantial A380 backlog and hence no basis to sustain production, despite all our sales efforts with other airlines in recent years. This leads to the end of A380 deliveries in 2021," said Airbus chief executive Tom Enders.

"Passengers all over the world love to fly on this great aircraft. Hence today's announcement is painful for us and the A380 communities worldwide."

Airbus said that more than 190m passengers had flown in the double-decker A380 since the first aircraft plane rolled off the assembly line in Toulouse, France, in 2007.The plane, which is capable of carrying 800 passengers, has struggled for profitability as demand for mid-sized jets took off.

The company said it would start talks "in the next few weeks" regarding the 3,000 to 3,500 staff positions potentially impacted over the next three years.

"However, the ongoing A320 ramp-up and the new widebody order from Emirates Airline will offer a significant number of internal mobility opportunities," it added.