Singapore not renewing lease on A380

Old Sep 14, 16, 7:51 am
  #1  
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Singapore not renewing lease on A380

Is this the beginning of the end of Suites Class?

http://www.reuters.com/article/us-si...e=businessNews

I've only flown Suites once...but it was my best flight ever.
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Old Sep 14, 16, 7:57 am
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No, the old planes will be replaced by new ones:

"We have five other A380s on firm order with Airbus and deliveries will start in the second half of 2017," SIA's spokesman said.

There will be a new suites class product on the five new A380s.
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Old Sep 14, 16, 8:35 am
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funny how the journalist says it's a blow for Airbus. In fact they are just replacing 5 old planes by 5 new. Not sure where is the blow ....
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Old Sep 14, 16, 10:33 am
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A380 in trouble?

SIA has announced that they are not renewing the lease on the first A380 they obtained. 4 more leases set to expire soon but no word on those.

Industry analysts are saying that while the flying costs on the behemoth are relatively low, the maintenance costs are eating up all or most of the savings.

This may be a one-off. Or not.
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Old Sep 14, 16, 10:35 am
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Originally Posted by Fly-Swiss View Post
funny how the journalist says it's a blow for Airbus. In fact they are just replacing 5 old planes by 5 new. Not sure where is the blow ....
perhaps more of a blow to the leasing company. I imagine that it could be difficult to find a new home for this aircraft
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Old Sep 14, 16, 10:44 am
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Leasing company would have doubled its investment, a blow for airbus eventually because no one except Dubai has the acumen to fill them A380s.
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Old Sep 14, 16, 10:58 am
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someone else might get SQ Suites?
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Old Sep 14, 16, 11:15 am
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They're not renewing the lease on the oldest 5 planes, and awaiting delivery on 5 new ones in 2017.
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Old Sep 14, 16, 12:04 pm
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So, is it that SQ gets newer, more technologically updated generation of A380s and gets rid of the first versions? Would they not get better lease rates if they kept these, or do they have obligations on those new ones that they cannot back out of and don't want an excess of A380s?
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Old Sep 14, 16, 12:33 pm
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some discussion of this issue here:

http://www.flyertalk.com/forum/singa...ease-a380.html

but it's 2am Singapore right now...
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Old Sep 14, 16, 12:54 pm
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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.
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Old Sep 14, 16, 1:39 pm
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Moving thread to the Singapore Airlines Forum, where it will likely be merged with existing thread on this topic.
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Old Sep 14, 16, 3:06 pm
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Any idea which routes the new A380s will fly (i.e. the routes these old ones fly, or will there be a 'rejig' of craft on routes)?
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Old Sep 14, 16, 7:21 pm
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Originally Posted by grandgourmand View Post
Is this the beginning of the end of Suites Class?
Indeed it is.

At least the end of the current Suites Class. But a new Suites/First Class will be introduced with the delivery of the 5 new A380 in 2017. SQs CEO hinted that the number of seats in Suites/First will be reduced from the current 12.

As the interior of the A380 is looking quite dated, I would expect that they will also start to retrofit the existing A380 fleet in the coming years.
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Old Sep 14, 16, 11:34 pm
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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.
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