ANALYSIS


Battle of the giants


Jumbo-sized aircraft may be phased out in favour of smaller planes, which will impact mega airport hubs


Airbus A380 ‘superjumbo’ commercially in October 2007, it was heralded as the start of a new generation of giant, long- haul aircraft that would reshape the way we travelled by air. After all, it was the world’s largest commercial airliner with the capacity to carry up to 800 passengers, eclipsing the previous ‘Queen of the Skies’, the Boeing 747 jumbo. Yet last October – a decade after it first


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flew commercially – the giant A380 air- craft, that made an epic maiden voyage from Singapore to Sydney, was dispatched to a small airport between the towns of Lourdes and Tarbes in the French Pyre- nees while its future was determined. SIA had decided to return the aircraft to the German leasing company Dr Peters Group that owned the superjumbo rather than extend its lease, especially since it had newer A380s on order.


A JETLINER’S LIFESPAN Ten years is not old in terms of modern jetliners’ lifespan, which often extends to 20 years or more – many Boeing 747s are still in service at this age or older – making the SIA decision all the more surprising to some observers. Often, however, the aircraft are sold on to smaller carriers unable to afford the many millions of dollars a new long-haul jet costs. A Boeing 737-700, for example, is listed on the manufacturer’s website at US$82.4 million brand new, although a second-hand 1991 equivalent is on sale for just US$6 million.


40 BBT January/February 2018


HEN SINGAPORE INTERNATIONAL AIRLINES (SIA) became the first carrier to operate the


Yet given the A380’s comparatively short


time in service, the key question is whether a second-hand market for the superjumbos can be established, especially since three more unwanted A380s are also due to be parked in the Pyrenees shortly. Meanwhile, the four Rolls-Royce engines on the former SIA aircraft are reportedly being offered for short-term rental to airlines in need of replacements while their own superjumbo engines undergo routine maintenance. Dr Peters is confident that, as more A380


leases are returned to it, a second-hand market will emerge. Its CEO, Anselm Gehling, is reportedly in discussions with a number of potential buyers for Singa- pore’s A380, including British Airways (which already has ten A380s) as well as low-cost Asian airlines. Another option is to cannibalise the aircraft for spare parts.


PEAK A380? But the outlook for the A380 is not promis- ing. Malaysia Airlines, for example, is stop- ping all scheduled services on its six-strong A380 fleet from early March after failing to sell the aircraft to other carriers. The reason, analysts suggest, is that following Malaysia’s twin aircraft disasters in 2014, the airline struggles to fill the 494 seats available on its superjumbos. Instead, Malaysia is planning to recon-


figure the A380 aircraft cabins from their present layout to a ‘high density’ 700-seater, providing services for Islamic pilgrim trav- ellers from ASEAN countries to Mecca in Saudi Arabia. A new subsidiary is being set up to manage this operation, due to start next year under the name ‘Project Amal’. The uncertainty about future prospects for the A380 is hitting sales. No new orders


have been received over the past two years, although there are 100 aircraft still under order from previous years. But Airbus has already announced production cuts: from the 27 built in 2015 to a target of just 12 this year and only eight in 2019. Even the most enthusiastic cheerleader for the A380 – Emirates Airlines, which


BUYINGBUSINESSTRAVEL.COM


“It was heralded as the start of a new generation of giant, long-haul aircraft that would reshape the way we travelled by air”


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