Airbus Updates No.1038

DORIC Lease Corp signs landmark agreement for 20 A380s

A380’s strong asset value and market potential recognised by leading lessor

17 JUNE 2013 PRESS RELEASE

Doric Lease Corp has signed a Memorandum of Understanding (MoU) for the purchase of 20 A380s at the 50^th Le Bourget Airshow. The agreement was signed today by Mark Lapidus, CEO of Doric Lease Corp and John Leahy, Airbus Chief Operating Officer, Customers.

With this investment, Doric will offer a tailored A380 leasing solution and will make the aircraft even more accessible to both new and existing A380 operators around the world who prefer to opt for the flexibility of an operating lease. Doric already has significant experience with the A380, ranking as the third largest wide-body lessor worldwide by value, and the world’s largest asset manager of leased A380s. Doric has a six billion US$ aircraft portfolio under management, including 18 A380s acquired through sale-leaseback arrangements.

“The A380 offers us a unique opportunity to continue growing Doric’s aviation platform by establishing ourselves as a lessor with a forward-order portfolio of 20 A380s to market with existing and new customers worldwide,” said Mark Lapidus, CEO of Doric Lease Corp. “We will be able to provide turn-key A380 ownership solutions to airlines, allowing them to benefit from operating this fantastic aircraft. The A380 offers airlines a great opportunity to provide a superior product and travel experience while strengthening revenue generation. We are delighted to be part of the long term success of the A380.”

“The A380 is moving into a new chapter, with more and more airlines around the world enjoying the benefits of its unrivalled passenger appeal and powerful revenue and growth generating capability. Airlines are waking up to the fact that if they want to stay ahead of the game, the only way is with the A380 in their fleets,” said John Leahy, Airbus Chief Operating Officer, Customers. “We are delighted that with Doric, airlines around the world will now have more flexibility in bringing the A380 into their operations while being equipped to capture the growth opportunities we are seeing as the global economy recovers.”          

Since first entering service in 2007, the A380 has joined the fleets of nine world class carriers. The aircraft is capable of flying 8,500 nautical miles or 15,700 kilometres non-stop, carrying more people at lower cost and with less impact on the environment. The spacious, quiet cabin and smooth ride have made the A380 a firm favourite with both airlines and passengers, resulting in higher load factors wherever it flies.

The total A380 fleet has accumulated over 920,000 flight hours in close to 110,000 commercial flights. To date 40 million passengers have already enjoyed the unique experience of flying on board an A380. Every six minutes, an A380 either takes off or lands at one of the 30 airports where it operates today and the network is constantly growing.

Airbus Updates No.829

SIA, Scoot to upgrade & expand fleet

Deliveries are due to begin in 2017, the airline said in a statement.

The airline currently operates 19 A380 superjumbos and already had firm orders in place for 20 A350s, for delivery from 2015.

SIA said the A350s are intended for use on medium and long-haul routes.

As part of the deal, SIA said Airbus will acquire its five A340-500s, which will be removed from service in the fourth quarter of 2013.

The airline said it will cease non-stop flights between Singapore and Los Angeles and between Singapore and Newark in view of a lack of replacement aircraft in its fleet with "sufficient range and operating economics".

SIA CEO Goh Choon Phong said: "Although (it is) disappointing that we will be halting these services, we remain very committed to the US market.

"Over the past two years, we have increased capacity to both Los Angeles and New York by deploying A380 superjumbos on flights via Tokyo and Frankfurt. We will also continue to explore additional options to enhance our US services,"

SIA also added that its Scoot unit will acquire 20 Boeing 787 Dreamliner aircraft to support its growth plans, in a deal worth more than US$4.0 billion at list prices.

Deliveries will start in 2014, said Scoot, which started operations in June.

The fuel-efficient new aircraft will replace Scoot's fleet of Boeing 777-200s, it added.

Scoot currently operates no-frills flights from Singapore to Sydney, Gold Coast, Bangkok, Taipei and Tianjin in China.

Services to Tokyo will start on October 29, followed by flights to the Chinese cities of Shenyang and Qingdao in November, the statement said.

Airbus Updates No.828

Singapore Airlines to order more A380s and A350 XWBs

Maximum comfort and efficiency for medium and long haul routes

24 October 2012Press Release

Singapore Airlines (SIA) has announced that it will order 25 more widebody aircraft from Airbus, comprising five double deck A380s and 20 A350-900s. The aircraft will be operated on the carrier’s long range and regional services, offering maximum comfort and efficiency for high density and medium capacity routes.

The latest A380 order will be the third to be placed by the airline, bringing the total number of A380s ordered by SIA to 24. The airline, which was the launch operator for the A380, now has 19 aircraft in service, flying to 10 destinations in Europe, the US and the Asia-Pacific region from its Singapore base. In the mid-size category, the new A350 XWB order will see the airline double its backlog for the all-new aircraft to 40. The A350-900s will be used by the airline on both medium and long haul routes.

“This major order will provide us with additional growth opportunities and is consistent with our longstanding policy of maintaining a young and modern fleet. It demonstrates our commitment to the Singapore hub, and our confidence in the strength of the market for premium full-service travel,” said Goh Choon Phong, CEO, Singapore Airlines. “The aircraft will enable us to further enhance our network, providing more travel options to our customers. They will also feature the next generation of in-flight cabin products to keep us at the forefront of airline product innovation.”

“This announcement from one of the world’s most prestigious carriers underscores the unrivalled comfort and efficiency offered by Airbus widebody aircraft,” said John Leahy, Chief Operating Officer, Customers, Airbus. “As Singapore Airlines has shown, the A380 has proven itself to be a game changer at the top end of the market. We are now set to bring new levels of efficiency to the mid-size segment with the arrival of the A350 XWB. We are extremely proud to count Singapore Airlines as a leading airline partner on both of these innovative aircraft programmes.”

Since first entering service with Singapore Airlines in 2007, the A380 has joined the fleets of nine world class carriers. Typically seating 525 passengers in three classes, the aircraft is capable of flying 8,500 nautical miles or 15,700 kilometres non-stop, carrying more people at lower cost and with less impact on the environment. The spacious, quiet cabin and smooth ride have made the A380 a firm favourite with passengers, resulting in higher load factors wherever it flies. To date, Airbus has recorded 257 firm orders for the A380 from 20 customers.

The A350 XWB (Xtra Wide-Body) is an all-new mid-size long range product line comprising three versions and seating between 270 and 350 passengers in typical three-class layouts. The new Family will bring a step change in efficiency compared with existing aircraft in this size category, using 25 per cent less fuel and providing an equivalent reduction in CO2 emissions. Scheduled for entry-into-service in 2014, the A350 XWB has already won 558 firm orders from 34 customers worldwide.

As part of the deal airbus will take back the 5 A340-500 aircraft Singapore Airlines currently operate on the non stop EWR-SIN service and this service will be stopped.

Airbus Updates No.810

UPDATE 1-Emirates Airline's Clark says wants more Airbus A380s

Thu Sep 27, 2012

By Alwyn Scott

Sept 27 (Reuters) - Confirming growing demand for the world's largest airliner, a top executive of Emirates Airline said on Thursday the company would be willing to buy another 40 Airbus A380 jets, but that the fast-growing Dubai airport where the airline is based is short of room for them.

Emirates Airline President Tim Clark had already said the airline wants another 30 A380s, on top of 90 already on order. Increasing that number to 40 suggests demand is rising for the A380 made by the Airbus unit of Europe's EADS.

Emirates, by far the largest customer for the A380, whose list price is $390 million, had 23 of the superjumbo jets in service at the end of August.

Clark, speaking at an industry conference in Seattle, said there are seven A380s waiting in Hamburg, Germany, for delivery as part of the normal deliver schedule. He is not worried about his airline's strong growth being affected by recession in Europe, slowing growth in China and unrest in the Middle East. Dubai, he said, "is a honey pot. There is no place better, except maybe China."

Clark has been ratcheting up his demand for the 525-seat A380 jet since he surprised the aviation world in 2010 by saying the airline could buy 120 of the aircraft.

Emirates, one of Dubai's most prized assets, has continued to grow rapidly despite a regional debt crisis followed by a wider recession affecting the airline industry and high fuel prices.
"We don't cancel orders," Clark said. "We get on with it."

If Emirates carried out its ambition of operating a fleet of 130 A380s, adding 40 to its current order of 90, it would control a fleet worth over $50 billion at list prices and extend its dominance as the European planemaker' s largest customer.

Regarding the development of a revamped Boeing Co 777, Clark said that the first of its fleet of 777-300-ER jets are due to be retired in 2017, and Emirates would like to replace them with the updated 777, which promises much greater efficiencies.

Given that deadline, he said it was a good time to start "bellyaching" to get a new jet started. "I'm hoping to see it sooner rather than later."

A Boeing official said the company is developing options and "when we are satisfied with the risks, costs and schedule, we intend to present a plan for offering the airplane to customers that would enter the market late this decade."

Airbus Updates No.764

Hong Kong may cancel A380 order

 

Hong Kong Airlines (HX) is considering canceling its order for 10 Airbus A380s according to newswire AFP, amid ongoing Chinese government protests against the European Union Emissions Trading Scheme tax (EU ETS) (ATW Daily News, March 9).

"There are no firm decisions at this point. It will depend on how the business and the external environment evolves in the future," an HX spokesman told AFP. Despite the possible cancellation, the spokesperson told AFP that HX would eventually have an “all Airbus” fleet.

Consequently, it is also considering delaying delivery of six Boeing 777Fs, originally slated for delivery in 2013 and 2014, to “after”2015, according to Reuters, and replace five 787-800s and two 737-300Fs with A330s and A320s this year.

The carrier earlier this month said it would cease service between Hong Kong and London Gatwick from Sept. 10, to focus on a regional Asia-Pacific model following a review of its European strategy due to the weak economic outlook (ATW Daily News, Aug. 9). The announcement came on the heels of a Hong Kong Civil Aviation Dept. ruling to freeze HX’s fleet expansion plans due to safety concerns surrounding its rapid fleet expansion (ATW Daily News, Aug. 7).

The A380 order, placed in January, is valued at about $3.8 billion at list prices and was scheduled for first delivery in 2015 (ATW Daily News, Jan. 10).

Airbus Updates No.728

SOUTH AFRICAN AIRWAYS

is reportedly in discussions with Airbus for the purchase of up to 4 A380 aircraft. unnamed airbus source says deal is in early stages

TURKISH AIRLINES

is reportedly ready to place a firm order for up to 10 A380 aircraft at this years Farnborough Airshow, some sources close to the deal believe an order of 10 may be placed with options taken out of a further 6 aircraft

QATAR AIRWAYS

is reported to have deferred delivery of its five ordered A380 aircraft and are awaiting confirmation that the crack problem in the wings has finally been resolved,
The airline is also expected to confirm at Farnborough that Airbus will be converting up to 18 A330 aircraft to Freighters for the airline.

AIR ASIA

is reported to be looking at ordering up to 50 additional A320 aircraft to fill the gap until their A320NEO's come on line in 2016.

MALAYSIAN AIRLINES

the airlines first A380 aircraft operated its first KUL-LHR-KUL service today (2nd July) arriving at Heathrow at 0545 and departing at 1141

Airbus Updates No.721

Transaero Airlines firms up order for four A380s

First A380 customer in Russia, the CIS and Eastern Europe

21 June 2012Press Release

Transaero Airlines, Russia’s second largest airline, has completed a purchase agreement with Airbus for four A380 aircraft. The agreement was signed today by Olga Pleshakova, Transaero Airlines CEO and Christopher Buckley, Airbus’ Executive Vice President Europe, Asia and the Pacific on the first day of the Saint Petersburg International Economic Forum. This order follows a Memorandum of Understanding signed in October 2011. The deal will be financed with the support of VEB Leasing.

Transaero becomes the first customer for the A380 in Russia, the CIS and Eastern Europe. The Russian carrier plans to start operations with the A380 on its long-range network of high density routes from Moscow. The aircraft will feature a three class cabin layout, seating about 700 passengers. Transaero will announce the engine selection soon.

”Our airline, with its strong innovation culture, will be the first in Russia to fly the A380, the world’s largest passenger aircraft. I am sure that the operation of the A380 will stimulate the development of Russia’s aviation sector, in particular, its ground infrastructure. In addition, our passengers will benefit from the completely new air travel experience that the A380 offers with its spacious, comfortable cabin, for their long-haul flights.” said Olga Pleshakova, Transaero Airlines CEO.

“We are delighted to welcome Transaero as our new A380 customer,” said John Leahy, Airbus Chief Operating Officer, Customers. “We are confident that this most efficient aircraft will enable the airline to cope with the traffic growth in Russia and offer its passengers unrivalled levels of comfort on board,” he added.

Transaero Airlines launched its services in November 1991, and currently serves more than 130 routes all over the world.

Since entering service in 2007 the eco-efficient A380 has exceeded all expectations, flying more people further at lower cost (over 23 million passengers up to date). The spacious, quiet cabin and the smooth ride have made the aircraft a favourite with passengers. This has resulted in higher than average load factors and increased profitability on A380 flights, providing airlines with a key competitive advantage wherever they operate the type. With 100 flights per day, the A380 is becoming a familiar sight at airports across the globe. The A380 fleet transports one million passengers each month and performs a takeoff or landing every eight minutes.

Including today’s orders for four A380 from Transaero, the total A380 order book stands at 257 aircraft from 20 customers worldwide. To date, Airbus has delivered 77 aircraft to eight customers. 

Airbus Updates No.644

HONG KONG AIRLINES A380 ORDER UNDER THREAT IN WORD OF WORDS WITH EU


(Reuters) - Hong Kong Airlines Ltd has threatened to cancel an aircraft order with Airbus in the latest escalation of tension over the European Union's decision to make flights pay for their carbon emissions, the South China Morning Post reported.
The Hong Kong-based regional carrier, backed by China's fourth-largest carrier Hainan Airlines Co Ltd (600221.SS), said it was under pressure to cancel its order for 10 Airbus A380s with a list value of $3.8 billion, the Hong Kong newspaper said.
"We cannot do something which is against our country's interests," it quoted airline president Yang Jianhong as saying.
The A380 superjumbo is European aircraft maker Airbus's (EAD.PA) flagship passenger jet.
A spokeswoman for Airbus said the Hong Kong Airlines orders "have been placed in the order book and they remain there".
Others refused to comment.
"I cannot confirm this and I have no comment on this," said Kenneth Thong, Hong Kong Airlines' head of corporate governance and international affairs.
In Brussels, Isaac Valero-Ladron, EU spokesman for climate action, said the European Commission did not comment on "possible commercial decisions".
China has said it would not buy Airbus aircraft because of the EU's Emissions Trading Scheme ETS.L, which requires all flights using EU airports to pay for their carbon costs.
Plans to announce the high-profile A380 deal between Airbus and Hong Kong Airlines were called off at the Paris Airshow last June because of China's anger over the ETS, industry sources said.
But Hong Kong Airlines confirmed its order for the double-decker A380 some months afterwards.
Analysts say airlines typically have to pay a deposit of at least 5 percent when they place a firm order.
CHINA SOUTHERN
So far, China Southern Airlines Co Ltd (1055.HK) (600029.SS) (ZNH.N) is the only mainland Chinese airline to order the A380. Two of the five planes it ordered are already in service on the Beijing-Guangzhou route.
"The third A380 is arriving today and will start serving the Beijing-Hong Kong route tomorrow. There is no plan to cancel the other two," a spokesman of the airline told Reuters.
The Airbus-Boeing (BA.N) duopoly in the supply of larger commercial airlines means China has to rely on the European and U.S. firms to meet fast-growing demand for civil aviation.
In February, China banned its airlines from participating in the European Commission's ETS unless they were given approval.
At a daily briefing on Thursday, Chinese Foreign Ministry spokesman Hong Lei repeated China's opposition.
"The facts show that Europe's actions are unpopular and will have no effect," he said. "We hope that Europe can face squarely the international community's concerns and devote themselves to solving the issue, not further complicating it."
Apart from China, other major powers, including the United States and India, have objected to the EU's scheme on the grounds it breaches national sovereignty, but Europe's highest court in December said the EU law was valid.
Although Commission officials made no comment on the latest threat, they have said they will modify their law only if the U.N.'s International Civil Aviation Organization ICAO.L finds a global solution to the problem of rising airline emissions.
Commission director-general for climate action Jos Delbeke said this week the EU would respond to retaliation, although he did not specify how.
OTHER LATENT THREATS
Air China Ltd (601111.SS) (0753.HK), China Eastern Airlines Corp Ltd (600115.SS) (0670.HK) (CEA.N), China Southern and Hainan Airlines -- China's top four airlines -- would also consider legal action against the EU over the move to charge for carbon emissions on flights to and from Europe, according to the China Air Transport Association CATA.L.
The holding company that controls Hong Kong Airlines counts Hainan Airlines and Hainan Airlines' parent HNA Group among its top shareholders.
The carrier, which had 14 aircraft including six A330-200s and eight Boeing (BA.N) 737-800s, was taking delivery of eight to 10 more this year, its spokeswoman told Reuters in January.
It operates scheduled flights to up to 10 cities in China and other parts of Asia and Europe, including Indonesia, Japan, Singapore, Thailand, Vietnam and Russia.
The carrier has said it would start daily flights between Hong Kong and London in March.
The ETS scheme would be unlikely to have a big impact on its customers as the flights would be all-business class.
In any case, the Commission has made clear the carbon cost per passenger would be only between 2 and 12 euros, depending on airlines' decisions about how much to pass on to customers.