Leasing Company Amedeo Terminates dormant Airbus A380 Order
The Airbus A380 is the world’s largest passenger airliner, a wide-body aircraft manufactured by Airbus. Airbus studies started in 1988 and the project was announced in 1990 to challenge the dominance of the Boeing 747 in the long haul market.
The A3XX project was presented in 1994; Airbus launched the €9.5 billion ($10.7 billion) A380 programme on 19 December 2000. The first prototype was unveiled in Toulouse on 18 January 2005, with its first flight on 27 April 2005.
It obtained its EASA and FAA type certificates on 12 December 2006. Difficulties in electrical wiring caused a two-year delay and the development cost ballooned to €18 billion.
It was first delivered to Singapore Airlines on 15 October 2007 and entered service on 25 October. Production peaked at 30 per year in 2012 and 2014. However, Airbus concedes that its $25 billion investment for the aircraft cannot be recouped.
On 14 February 2019, after Emirates reduced its last orders in favour of the A350 and the A330neo, Airbus announced that production would end by 2021
Just In time as things keep going bad for our dear Airbus A380, Amedeo has officially canceled its order for 20 Airbus A380s, without even taken a single one from the order.
Amedeo emerged as a successor brand to Doric Lease, which firmed an agreement to take the 20 aircraft in February 2014 – becoming the only A380 customer that year.
Airbus showed no sign of delivering any Airbus A380 to Amedeo since 2016 which was the year the company expected to receive A380s from Airbus. in the five years since the order, that the aircraft was undergoing manufacture.
Amedeo had expressed confidence that it could market the aircraft to potential operators, arguing that there was pent-up demand for the aircraft.
but that carriers were not capitalizing the savings potential from higher-density configurations featuring 600-700 seats. But the order has languished on Airbus’s A380 backlog without any indication of being fulfilled.
Amedeo says it has “agreed a termination” of the 20 jets with the airframer and is holding discussions over “other commercial options”.
The company already has A380s on lease to Emirates and Etihad Airways. It claims that Airbus’s plan to discontinue A380 deliveries will have “positive implications” for future values of the fleet, particularly those with Emirates.
“As much as this is a watershed moment for Airbus, it may also be seen as marking an inflection point in Emirates’ growth strategy, evolving from a rapid and successful growth phase to consolidation of its now established market position,” says Amedeo.
“We expect the A380 to remain a core aircraft type for Emirates, with higher financial profitability deriving from the long term use of its A380 fleet.”
The company says it expects Emirates to retain a core fleet of more than 100 A380s, and that they will be operated by the Dubai-based carrier for the entirety of their useful economic lives.
“This will act to reduce future capital expenditure, depreciation, and rental expenses significantly while retaining the A380’s unit cost advantage of scale and unrivaled customer experience,” it adds.
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