Originally posted by nocturne
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A380 - Master Thread
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I wonder if that's the reason they are looking to write down the cost of the fleet (in the process absorbing a gigantic loss once-off) so they can park them for a couple of years until traffic recovers (a la QF).
Given SQ's business model, there will be markets where the aircraft can probably be profitably operated but with the situation at the moment, it may not be for a couple of years yet so they will need to somehow get through this period. Also, they may not need all 19 of them so I am guessing we can expect some retirements.
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What makes you say that? The decision made sense for SQ, at least when it was made, as the A380s had a role to play in the fleet and SQ was able to utilise them. SQ had been operating the aircraft for a few years before the replacement order. If the economics doesn't work for them, as you suggest, SQ would not have placed the order, and just reduced the fleet/order as Air France, Qantas and Lufthansa had done pre-COVID-19. In the early 2000s, SQ quickly replaced and exited the A340-300s because the economics didn't compare to the Boeing 777s, so SQ isn't shy about letting go of aircraft that doesn't make sense for them.Originally posted by nocturne View PostLooking like the end for A380s.
It really didn't make sense for them to replace their first 5 A380s with newer planes. They must have known the economics doesn't work for this aircraft after operating them for 10 yrs. I wonder why they got pressurred to maintain the fleet
In addition, SQ's first 5 A380s were older builds early in the production line and not as efficient in the latest ones. Almost always there are performance improvements made to later builds in aircraft production which make them more efficient to operate.
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SIA's replacement order for the second 5 A380s was done before the Covid19 situation. But since covid19, many airlines operating the A380s have found the 4 engine aircraft to be heavy and inefficient to use and considering the less than 500 passengers they carry. Airlines realised that they can hardly make profit unless the A380 has a 90% load factor. Therefore the realisation that 2 engined widebody especially the newer 787s and A350s can be more efficient to operate and cost considerably less maintenance cost than to fly a A380. For example an airline can fly 2 A350s to a same destination as a A380 and it will be even costs less than one A380. Airlines now have began to change and even after covid, it will take another 2-3 years to return to post covid flights.
Hence now we see even other airlines like Lufthansa, Qatar, Air France are retiring their A380s with some of these planes even less than 10 years old. Even Emirates have retired some of the A380s and mothballed some for the next few years.Last edited by flyguy; 15 September 2020, 11:21 AM.
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9V-SKN has completed refurbishment during this downturn. I believe they are working on 9V-SKM now, correct me if I am wrong.Originally posted by flyguy View PostSIA could have use this downturn and refit and reconfigure at least 2 A380s to the current version 3 standard, as these A380s are all grounded since last april and it takes about 6 months to refit one aircraft.
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Those are costly to undertake, at a time when there is marginal revenue being generated and steps are being taken to reduce cash burn...Originally posted by flyguy View PostSIA could have use this downturn and refit and reconfigure at least 2 A380s to the current version 3 standard, as these A380s are all grounded since last april and it takes about 6 months to refit one aircraft.
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Surely SIA's A380s will return to the skies as doubt SQ will write off its 19 A380s as it was very costly to buy the planes in the first place, and there's is no secondhand value for the A380s except for scrapping and spares.Originally posted by FlyBoy View PostWhy would they do that, when they have not yet decided if the A380s will ever return
What SQ will likely do is to reduce a few A380s and put the older A380s in retirement/storage.
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As mentioned earlier, do believe that SIA will not remove the entire A380 aircrafts. Although they may nor fly till mid-2021 or later but will definitely take to the skies.
The other thing is that SIA needs to refurbished some of its A380s to the ver 3 as it can seat 471 passengers as the other 2 versions carry much less especially the ver 2 with only 379 passengers. Perhaps SIA can consider a 2 class A380 which can carry more - like Emirates which can carry 600 pax.
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things are still very fluid. anything can happen tbh.Originally posted by flyguy View PostAs mentioned earlier, do believe that SIA will not remove the entire A380 aircrafts. Although they may nor fly till mid-2021 or later but will definitely take to the skies.
The other thing is that SIA needs to refurbished some of its A380s to the ver 3 as it can seat 471 passengers as the other 2 versions carry much less especially the ver 2 with only 379 passengers. Perhaps SIA can consider a 2 class A380 which can carry more - like Emirates which can carry 600 pax.
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