- Emirates’ Caution On A380 Financing
- Financiers Wary Of Second Hand Market, Falling Demand & Weak Backlog
- Lessors Struggling To Identify Takers For Used Examples
The real A380 backlog is down to no more than about 50 units. The numbers on Airbus’ books will never be delivered.
Emirates is not keen on taking more A380s for a number of reasons. While congestion at its hub, Dubai International, is a key driver, the airline is more concerned about the reticence of financing houses lending money to pay for them.
Monthly lease rates on the A380 are falling sharply. No one wants the A380s from Malaysia Airlines – used less aggressively than those operated at Emirates. Airbus can’t even give the A380 away, let alone sell it.
There is growing risk aversion to financing A380s. Slashing production to just eight per year ensures that the A380 is a huge loss making calamity that continues to sap Airbus’ money.
With 777X arriving, Airbus still has no competitive response to this family.
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