Surplus Singapore Air A380s Set for Paint Shop to Lure Users

[flee 5]

Aircraft-leasing firm Doric is preparing to take back five Airbus Group SE A380 superjumbos from Singapore Airlines Ltd. starting next year, in a move that would be the first test of second-hand demand for the world’s biggest jetliner.

While Singapore Air hasn’t officially decided to return the planes, London-based Doric and fellow owner Dr. Peters Fund KG of Germany are preparing for their possible refurbishment, reserving time in paint shops and exploring the availability of hundreds of replacement seats.

“It appears possible that Singapore will not exercise its lease extension,” Doric Managing Director Bernd Reber said in an interview. The asset manager is also working with Airbus to highlight the possible availability of the double-deckers to potential users.

More: http://www.bloomberg.com/news/articles/2016-05-11/surplus-singapore-air-a380s-set-for-paint-shop-to-lure-new-users

[leon t 0]

Doubt SIA will renew these 5 leases - as SIA have already placed an order earlier last year or is it before - for 5 new A380s.

And wonder when or now if MAS will continue to use its 6 A380s and not withdraw it from service when the4 leased A350s arrived with Chris gone now.

[RaymondT 0]

Doubt SIA will renew these 5 leases - as SIA have already placed an order earlier last year or is it before - for 5 new A380s.

 

This seems to be the situation as the early A380s are not performing as well as the later A380s are.

 

 

And wonder when or now if MAS will continue to use its 6 A380s and not withdraw it from service when the4 leased A350s arrived with Chris gone now.

 

Where did you read/hear that the A350s will go away? Last I've read is that they're considering even more A350. (Of course, this was in early March, before CM's announced resignation)

 

http://atwonline.com/airlines/malaysia-airlines-weighs-more-a350s-restructuring-continues

[leon t 0]

did not say nor hear that the A350s will go away - what is clearly what I meant and wrote is that whether MAS will still keep its A380s when the 4 leased A350s arrives.

[Cire 0]

Its a pity that the A380 now seems to not make economic feasibility with some airliners starting to delay orders, leased out and cancelling of orders for it.

Why is it so? Passenger rates declined?

[S V Choong 4]

The 747-8i is even worse in that regard though... No new sales...

[flee 5]

The 747-8i is even worse in that regard though... No new sales...

The interesting thing is that while the B748 has some VIP customers, the A380 has none! I would have thought that the A380 is even better suited as a VIP aircraft. Perhaps the used SQ ones would be good for VIP conversion, if they were offered for sale at a low, low price.

[KK Lee 5]

Used Airbus Group SE A380 superjumbos are being offered at a 40 percent discount to the $2 million-plus monthly rental rate for a new plane as leasing firm Doric seeks to spur demand for the second-hand jets.

 

Doric is in talks with a number of potential operators for a tranche of double-deckers that could be returned by Singapore Airlines Ltd. and Dubai-based Emirates from 2017 following the completion of 10-year leases, Sibylle Paehler, the lessor’s managing director, said in an interview.

Interested parties span second-tier airlines that haven’t yet flown the A380 through charter carriers and companies that specialize in so-called wet-lease services, in which jets are provided for a limited term complete with crews.

“Each has a different business model, so it’s hard to make precise forecasts on the most-likely future use,” Paehler said, adding that the main stumbling block is that “nobody wants to be first” in announcing a deal for a 550-seat plane whose popularity as a second-hand transport has yet to be demonstrated.

....

While some carriers have inquired about buying the planes, Doric, which has its main offices in Offenbach, Germany, reckons the assets would offer a bigger return if it retains ownership, the executive said. A 10-year-old superjumbo might sell for $100 million, compared with a $428 million list price for a current example, though buyers of new jets can negotiate significant discounts.

Dr. Peters owns the first A380 that may become available. The asset manager paid $197.3 million for the plane in 2007 -- versus a list price of $304 million to $314 million -- as part of a 10-year sale-and-leaseback deal involving Singapore Air, which rented the jet for $1.71 million a month, according to an investor prospectus. The carrier can extend the lease for two years at the same rate, the document says.

http://www.bloomberg.com/news/articles/2016-06-16/world-s-biggest-jetliner-available-for-rent-at-40-discount

[flee 5]

SIA will not extend lease of first A380

 

Singapore Airlines will not extend the lease on its first Airbus A380 after its expiry in October 2017.

The aircraft, registered 9V-SKA (MSN 003), is on a 10-year lease with options to extend.

“The decision was the result of a regular review of our fleet requirements,” says SIA when contacted by FlightGlobal.

More: https://www.flightglobal.com/news/articles/sia-will-not-extend-lease-of-first-a380-429312/

[flee 5]

Singapore Airlines Won’t Extend First Airbus A380 Lease

 

SIA has another five A380s on firm order which are due to arrive from late next year. The airline says these orders will not be deferred.

 

Full story here:

http://aviationweek.com/commercial-aviation/singapore-airlines-won-t-extend-first-airbus-a380-lease

[flee 5]

Opinion: Airlines Sending Clear Signals About A380's Future

 

Singapore Airlines’ decision to send back its first A380 comes at a bad time for Airbus

 

http://aviationweek.com/commercial-aviation/opinion-airlines-sending-clear-signals-about-a380s-future