We know Airbus is stopping A380 production. We also know that airlines are accelerating the retirement of them. But unlike past airframes, there appears to be absolutely no secondary market for them.
A Grim Future For A380 Leaseholders
I’ve written about Air France returning its leased A380s. They are owned by German investment firm Dr Peters. As part of its deal to accept the A380s back from Air France ahead of schedule, Air France must continue to make maintenance payments and lease payments on the engines. Consequently, Dr Peters will “break even” on the investment, hardly anything to celebrate in this time of stock market boom.
And now Dr Peters finds it cannot sell these used airframes. It had hoped to earn about $70MN from each, but now is hoping for $20MN by scrapping them and selling parts. Even demand for those parts as limited as A380 operators around the world scale back.
> Read More On The Airbus A380
- The A380 Is Dead, Long Live The A380
- Six Reasons Air France Is Retiring A380
- Qatar Airways Accelerates A380 Retirement
- Lufthansa Snubs The A380
- Why British Airways Turned Down More A380s
- The Wall Street Journal Battles The Airbus A380
Don’t expect to see A380s flying in the developing world for years to come or to serve as a cargo airliner. Depending upon your perspective, the A380 was simply ahead of its time…or misjudged its time.
image: Laurent ERRERA / Creative Commons 2.0