ISTAT Jetrader - Autumn 2019 - 45

operators: Emirates, Singapore Airlines,
Lufthansa, British Airways and Qantas.
With greater liberalization, smaller
widebody aircraft such as the A330,
A350, 787 and the 777 fragmented
many markets where much larger
types had been used. Over time, this
limited opportunities for the A380 and
747- 400.
There has always been concern
over the remarketing of the fleet given
the paucity of airlines looking to fly
such a large aircraft. In addition, the
high cost of reconfiguration in general
for widebody aircraft exacerbated by
the highly customized interiors for many
current operators makes any transition
more problematic. As a result,
movements from primary to secondary
operators are very challenging.
A380 operators have been
recalibrating their fleets and
reconsidering their need for the
type. Singapore Airlines, Air France

and Lufthansa are among those
that have either returned aircraft
from lease or have signaled their
intention to allow current leases to
expire. Qatar Airways indicated that
it planned to withdraw its A380s
after 10 years of service beginning
in 2024. Malaysia Airlines had
previously been marketing its A380s to
potential buyers, but then established
a subsidiary operation aimed at
deploying their aircraft on pilgrimage
flights. British Airways was believed
to be considering the acquisition
of further aircraft secondhand and,
given the engine compatibility, the six
Malaysia A380s could be regarded as
possible candidates.
With no new A380 customers since
2016 and existing airline operators
rethinking their requirements, prospects
for the A380 in the marketplace had
been fading for a long time. With the
backlog diminishing, Airbus announced

the termination of the A380 program
in February 2019 with final deliveries
scheduled to occur in 2021. However,
Airbus remains firmly committed to
supporting the in-service aircraft,
and Emirates, the type's key operator,
has said that the A380 will remain a
mainstay of its fleet well into the 2030s.

Outlook
A380 values are likely to remain under
strong negative pressure. In terms of
the short- to medium-term outlook,
much depends on the decisions made
by current operators when leases
come due for renewal. There are no
other obvious mainstream roles for the
A380 going forward, although a very
small number of aircraft may find their
way into specialized missions such as
VVIP transport. With four units already
withdrawn from use at this point, this
may become a more common outcome
going forward.

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ISTAT Jetrader - Autumn 2019

Table of Contents for the Digital Edition of ISTAT Jetrader - Autumn 2019