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Matthew Kane

The end of an era?

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I found these two articles interesting this week:

 

Singapore Airlines not renewing its first A380 lease

http://www.bbc.com/news/business-37362488

 

737 Max and A320 NEO will be used for long haul flights

http://www.stuff.co.nz/travel/news/84325382/humble-boeing-737-and-airbus-a320-set-for-longhaul-journeys

 

Not that the 737 Max or A320 NEO will replace the A380 as that will most likely happen by more 787's and A350's. Interesting that we are coming to the end of an era of large jumbo jets and entering an age of smaller aircraft and larger fleets.

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I believe SIA still have A380s on order. It's just that the early variants weren't as efficient as those rolling of the production line these days. I suggest it's a bit premature to claim the end of the A380 era is nigh. Emirates appear to see some future in them.

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I was thinking about that too, that A380 was the very first delivery as it was the launch customer, and it was used in the testing and certification. More likely it has issues that the later ones produced do not as they ironed things out, therefore possible they are unloading just this one. I found the orders for the 747-800 disappointing and the A380 could have done better. 

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It just another way airlines kill the fun of flying and our love for flying machines. They do not like over capacity at all and this big planes had been targets ever since the beginning of the B747's and now also the A380's. Unfortunately, they still do great in the real long hull flights specially with passengers. Nobody cares for A320's and B737's crossing the pound. Get me once shame on you, twice is on me.

 

Airlines kills the B757 that were a replacement for the B727's with a plus in number of passengers and range. When Boeing pull the trigger the after market went on overdrive getting and buying/leasing them. Too late. Now I heard Boeing has plans for a replacement on that sector again.

 

Anyway, it will be sad to see these birds go ...

 

Cheers, 

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It''s almost a contradiction.  More people of flying now more than ever before -  yet, there is a move away from high capacity aircraft.

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Not really when the ultimate objective has been always to sell Nothing for all Riches of the World.

 

The good old tale: The Emperor's New Clothes, is still alive and kicking.

 

Cheers, 

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When you compare QANTAS and Air New Zealand which operate in the same part of the world QANTAS went with the A380 and ANZ went with the 777 and 787 in higher numbers. ANZ has seen the better returns as it has been profitable as QANTAS has struggled in the same period.

 

Purchasing smaller and higher volumes gives you more routes and more option for your customers. Also maintaining 4 engines on an aircraft has higher costs. Both the A340 and A380 had sales much lower then their potential.

 

I do like the A380 and dread the thought of flying trans-Atlantic in a 737. But if flights from New York to London are under $500 and departures every hour then that is what a 737 or A320 can deliver for an airline on a highly competitive route

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4 engines cost more. The A340 didn't do well. The A380 didn't do well and the 748 is really only selling to cargo with a very few exceptions. 787, 350 and 777 are the future.

 

Look at the orders. Keep in mind the A350 has just been put into production so the numbers will be lower intially

 

787 Deliveries  455   Orders  1161

 

777 Deliveries   1,424  Orders  1,893

 

A350 Deliveries 36   Orders  810

 

A380  Deliveries 194  Orders 319

 

748  Deliveries 107  Orders 124

 

A340 Deliveries 377. No orders listed.

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 ANZ has seen the better returns as it has been profitable as QANTAS has struggled in the same period.

 

 

 

Qantas has just returned a record >$1B profit, which is an amazing turnaround to the mess they were in just 3-4 years ago. 

 

This upturn coincides with it's alliance with Emirates, the biggest A380 user of all. Whilst i'm not saying this the sole reason for the change in fortune, it clearly hasn't harmed their business.

 

Out of interest, our family booked return flights to Europe later this year on the Qantas website and we are actually flying Emirates A380s in both directions. Their arrangement gives enables people so much more flexibility than just the kangaroo route in and out of LHR.

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This upturn coincides with it's alliance with Emirates, the biggest A380 user of all. Whilst i'm not saying this the sole reason for the change in fortune, it clearly hasn't harmed their business.

 

The reason why the A380 works well with Emirates is because they are an isolated hub unique only to them. The A380 means they can bring more people over longer distances to Dubai and this is what QANTAS banked on as well. This is where ANZ was successful was banking on North American airports as hubs and not Dubai using smaller aircraft and more of them. Better chances of filling aircraft when you are serving the USA, Canadian and European Markets in the same direction. QANTAS was splitting between two different directions.

 

Right now American and United are adding 777's and 787's on Auckland to USA routes as well as Sydney to try and take some business from ANZ as those routes have become lucrative. I am waiting for a 787 route from Auckland to Chicago as that has been mentioned for future expansion.

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I never feel sorry for any airline cause if they get in trouble it doesn't take much to see it is out of their own doing = always self inflicted. They always blame something or someone for it and we, the customers, are not offlimit either. Never them of course.

 

If you are young the easy it is to put out and not pay attention to their nonsense. Reach middle age and is all there and suddenly in plain view. 

 

We humans take a lot and no surprisingly we are the dominant species on this planet today. By taking it and keep on taking it. After all. it is our choice and our inalienable right. BTW, do not feel sorry for us cause that, we won't take.

 

Cheers,

 

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I said earlier New York to London for under $500, more like under $100 with these type promotions...

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