Singapore decides not to renew A380 lease

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By: snafu - 14th September 2016 at 22:28

Setback for Airbus.

Singapore Airlines has decided not to keep the first A380 it leased, delivering a fresh setback for Airbus' super-jumbo plane.
Singapore Airlines was the launch customer for the two-deck jet in 2007.
The airline has decided not to renew the A380 plane when the ten-year contract expires next year.
The news comes after Airbus more than halved its delivery target for the A380, raising fears it could slip back to making a loss from the aircraft.
A Singapore Airlines spokesperson said: "Our first five A380s are on 10-year leases, with options to extend. The first expires in October 2017, and we have decided not to extend it.
"For the other four, decisions will be made later."
But they added the airline had orders for five separate A380s with Airbus, which will start being delivered in the second half of 2017.
The A380 only began breaking even for Airbus last year.
In July, Airbus said it would still avoid losing money on the jet in 2017 with as few as 20 deliveries, but gave no further guidance.
Analysts says that big aircraft like the A380 and Boeing's 747 series have fallen out of favour.
Smaller jets can be more profitable as they are easier to fill and are cheaper to operate, analysts say.

http://www.bbc.co.uk/news/business-37362488

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By: TomcatViP - 16th September 2016 at 06:47 - Edited 1st January 1970 at 01:00

Conclusion is irrelevant. A failed jumbo facing difficulties to penetrate the market only imparts this market and not its competitor's products. The market segment is narrow so the effect might look devastating but they are not. Sadly Boeing has to hold its breath and wait that the smoke of Airbus failure fades away.
There is still a market for a plane like the 747.

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By: KGB - 22nd September 2016 at 03:46 - Edited 1st January 1970 at 01:00

Conclusion is irrelevant. A failed jumbo facing difficulties to penetrate the market only imparts this market and not its competitor's products. The market segment is narrow so the effect might look devastating but they are not. Sadly Boeing has to hold its breath and wait that the smoke of Airbus failure fades away.
There is still a market for a plane like the 747.

Looks like Boeing made the right call opting for a smaller high tech jet

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By: J Boyle - 22nd September 2016 at 06:24 - Edited 1st January 1970 at 01:00

There is still a market for a large jet, the question is whether it can be built as a financially successful commercial proposition.

Has the program broken even yet...have the various loans been repaid?

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By: Bmused55 - 22nd September 2016 at 07:22 - Edited 1st January 1970 at 01:00

Looks like Boeing made the right call opting for a smaller high tech jet

I was once called a blind fan boy for saying exactly that on here.

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By: TonyT - 22nd September 2016 at 18:49 - Edited 1st January 1970 at 01:00

I would imagine it has a good future as a freighter.

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By: Bmused55 - 22nd September 2016 at 19:33 - Edited 1st January 1970 at 01:00

They tried that. Was dropped like a hot rock when Boeing announced the 77F program. Also lots of 747s that are more suited will be available.

Coke cans are the future for old A380s