Singapore not renewing lease on A380
#17
Join Date: May 2006
Location: UK London / Salisbury
Programs: BA GGL, CCR, LTG
Posts: 542
The A380 program has lived off of billions of dollars (euros) of subsidies the let the phat phreak fly. While I have flown it many times and like the experience, there has never been an economically reasonable path to profitability with this airplane. Few airports can take it, airlines can't fill it, Airbus can't sell it, a freighter version is impossible. It's time to cut their losses and move on to selling planes than may actually make money for the businesses that fly them.
#19
FlyerTalk Evangelist
Join Date: Mar 2013
Programs: DL PM, MR Titanium/LTP, Hilton Diamond
Posts: 10,130
Yes, SQ will replace the 5 leased A380s, their eldest A380s, with newer & directly owned A380s. They could delay for penalty but they have no need to if production & delivery stay on date. The leasing company is the one with potential problems. Finding a new customer for a used & oldest generation A380 is potentially going to be tough.
I don't think even Delta would take them and Delta loves a used plane deal. For some reason I keep thinking of TK as an option for such route sat JFK/LAX-IST-HKG/BKK/TYO.
I don't think even Delta would take them and Delta loves a used plane deal. For some reason I keep thinking of TK as an option for such route sat JFK/LAX-IST-HKG/BKK/TYO.
I'd say there's a very small chance NH could take them if they are pleased with the performance of the ex-Skymark A380s they were forced to take though I think that is highly unlikely.
Maybe some new entity will make a go at it and try to flood a market somewhere. This would never happen but it would be humorous to see a LCC like Spirit take one of these and just run an all Y shuttle between say JFK and LAX or JFK and LHR.
#20
Join Date: May 2003
Location: Singapore
Programs: QF LTG, SQ EGTP, Bonvoy LTG
Posts: 4,847
As an example, MEL/SIN sees both SQ/Scoot operating at similar times as well as QF/Jetstar. One wonders if SQ or QF could have downstairs and Scoot or Jetstar could crew and service upstairs. Probably still cheaper just two operate two twin engines such as 777+787 (SQ/Scoot) or 333+787 (QF/JQ), and more profitable with the combined freight capacity of two aircraft.
#21
Join Date: May 2016
Location: SIN
Programs: SQ TPPS, QR Gold
Posts: 380
Don't know about Spirit, but have often wondered if it would make sense for cobranded aircraft - for one company to fly the plan and run the cabin on one level of the aircraft and lease out the other level to another airline to run that cabin (assuming resolution of any regulatory issues). Sort of taking codesharing to a new level.
As an example, MEL/SIN sees both SQ/Scoot operating at similar times as well as QF/Jetstar. One wonders if SQ or QF could have downstairs and Scoot or Jetstar could crew and service upstairs. Probably still cheaper just two operate two twin engines such as 777+787 (SQ/Scoot) or 333+787 (QF/JQ), and more profitable with the combined freight capacity of two aircraft.
As an example, MEL/SIN sees both SQ/Scoot operating at similar times as well as QF/Jetstar. One wonders if SQ or QF could have downstairs and Scoot or Jetstar could crew and service upstairs. Probably still cheaper just two operate two twin engines such as 777+787 (SQ/Scoot) or 333+787 (QF/JQ), and more profitable with the combined freight capacity of two aircraft.
Joke aside, this is a very interesting idea. The biggest drawback would be operational inflexibility, unless SQ/TZ can find enough routes to make it worthwhile keeping that specially configured fleet going.
Can't wait to see SQ's five-class A380: suites, business, premium economy, economy, and scootnomy.
#25
Join Date: Jan 2010
Posts: 9,307
The A380 program has lived off of billions of dollars (euros) of subsidies the let the phat phreak fly. While I have flown it many times and like the experience, there has never been an economically reasonable path to profitability with this airplane. Few airports can take it, airlines can't fill it, Airbus can't sell it, a freighter version is impossible. It's time to cut their losses and move on to selling planes than may actually make money for the businesses that fly them.
#26
Suspended
Join Date: Feb 2007
Location: PVG, FRA, SEA, HEL
Programs: UA Premier Gold
Posts: 4,783
For some reason I keep thinking of TK as an option for such route sat JFK/LAX-IST-HKG/BKK/TYO.
My take on the A380:
The airline industry has changed in the last 15 years. Its not just due to the Dreamliner.
1.
20 years ago it was normal that most (high yielding and longhaul) city pairs were like that:
Origin -> Hub A -> Hub B -> Destination (example HAM-FRA-PEK-XIY or WAW-MUC-SFO-SAN)
The A380 is a good fit to fly from Hub A to Hub B on a longhaul route.
Today most global carrier can now offer Origin -> Hub -> Destination.
(example HAM-HEL-XIY or WAW-LHR-SAN)
Because of these one-stop options, there are not enough (high yield) pax to fill an A380 on FRA-PEK or MUC-SFO.
2.
High yield pax today require frequency - even on longhaul.
On PEK-FRA, CA flies twice a day (an overnight Boeing 787-9; an daytime Boeing 747 or 777).
#27
Join Date: Jun 2006
Location: STL
Posts: 1,546
So, it will have to be Spirit Airlines, and they'll have to have a raunchy marketing campaign focusing on the fact that theirs is bigger than everyone else's.
#28
Join Date: Jan 2010
Posts: 9,307
I'm not so sure it will happen, but not due to the airports' capabilities.
#30
Join Date: Dec 2009
Location: New York, NY
Programs: AA Gold. UA Silver, Marriott Gold, Hilton Diamond, Hyatt (Lifetime Diamond downgraded to Explorist)
Posts: 6,776
Why would that happen? 5 of the eldest A380s will be return starting in October spread over a period of time which will most likely coincide with deliveries of new aircraft.
The JFK-FRA-SIN route was at one time seasonly changed but have been pretty steadily A380 for awhile now and in my experience having good load factors on the JKF-FRA segments.
The JFK-FRA-SIN route was at one time seasonly changed but have been pretty steadily A380 for awhile now and in my experience having good load factors on the JKF-FRA segments.