London: Airbus SE’s A380 superjumbo is proving to be too big to survive in many airline fleets after the coronavirus.
The pandemic has already grounded planes and brought air-travel almost to a standstill. Now airlines are making strategic decisions which could hasten the demise of the world’s largest commercial jetliner.
Air France-KLM said Wednesday it will book a 500 million-euro ($550 million) writedown from the early phasing-out of its A380 fleet, while Emirates, the world’s largest operator of the type, is said to be considering retiring as many as 65 of the double-decker aircraft.
“What we’re seeing is the death of the quad,” said Agency Partners analyst Sash Tusa, referring to the plane’s four engines. “It’s hard to see which routes are going to need 500 seats in the coming two to three years.”
The mammoth jet is a tough bet for airlines which are braced for demand not to return to prior levels until 2023 or later. Airbus had already opted to discontinue the A380 program as carriers looked to simplify fleets and upgrade fuel efficiency but now airlines around the world are opting to retire it early.
Air France will switch to newer Airbus 350s and Boeing Co. 787s, it said in a statement on Wednesday. It plans to record the expense in the second quarter. The airline said a move to make its fleet more competitive also prompted the phase-out, originally scheduled for the end of 2022. Five of the A380s in the fleet are owned by Air France or on finance lease, with a further four on an operating lease.
The early retirement comes a decade after Air France first started operations with the plane, and marks a symbolic blow because the giant model is assembled in France. Components like wings and fuselage sections are flown in or brought by barge and then wind their way down to Toulouse, where they are pieced together.
Airbus is due to end production of the A380 in 2021, with 8 more aircraft to be delivered to Emirates and 1 to Japan’s ANA. Emirates is now seeking to cancel 5 of those deliveries, according to people familiar with the matter, with Airbus pushing back because the planes are already in assembly.
Emirates has a fleet of 115 A380s and had planned to operate them through the end of the decade. Air France, on the other hand, had announced in July 2019 that it would replace its fleet of A380s with more efficient twin-engine models. – Bloomberg
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