Airbus A380 makes a comeback as travel demand increases amidst high fuel prices

Two years ago, dozens of Airbus A380 set course for storage sites in rural France from the Gulf as the outbreak of COVID-19 accelerated the demise of the world’s largest jets.

Now, the iconic European double-decker is gaining a new lease on life as airlines scramble to cope with rising demand and shortages of newer models, though for how long is unclear.

The return of the four-engine behemoth at carriers such as Singapore Airlines and Qantas Airways – and soon at Japan’s ANA Holdings and South Korea’s Asiana Airlines – comes despite high fuel prices that make operating new-generation two-engine widebodies far cheaper.

Airbus A380 makes a comeback as travel demand increases amidst high oil prices

“Passengers, they love the plane and we have a lot of business class seats on it so it is a very good aircraft to fly on high-demand routes,” Korean Air Lines Chief Executive Walter Cho said on the sidelines of an airline industry gathering in Doha. Korean Air plans to have three of its 10 A380s back in service by the end of the year, up from one today.

Strong demand and delays in deliveries of new Boeing 777X airliners have also forced a rethink at Lufthansa. It will decide soon whether to bring back the A380, but has only 14 pilots with current approval to fly them and will train A350 pilots to double up, Chief Executive Carsten Spohr said.

The A380 was once billed by Airbus as a 21st-century cruiseliner with prospects for 1,000 planes in service. But only 242 were built after many carriers opted for smaller twin jets.

ANA Holding will soon revive the superjumbo jet

Analysts say the fleet will never return to pre-pandemic levels. Yet 106 are back in service, according to data firm Cirium, up from a low of just four when the crisis hit in April 2020. There is little second-hand demand for A380s, so airlines often face a choice of flying or scrapping them.

“Keeping aircraft that have been written down … may be the least bad option,” said Ascend by Cirium Global Head of Consultancy Rob Morris.

Even so, Air France permanently retired its A380s during the pandemic, Thai Airways and Malaysia Airlines have put them up for sale despite weak demand from buyers and even current operators have sent some to be scrapped.

Lufthansa will decide soon whether to bring back the A380

The downturn prompted many airlines to write down the value of their biggest jets. Having taken that hit, they can fly the jet without expensive depreciation charges – though the price of fuel devoured by the plane’s four engines remains a huge headache.

Qantas took an AUD 1.43 billion (USD 995 million) charge in 2020, mainly on the then-grounded A380, but is now bringing back 10 out of 12.

The A380 has also won a reprieve in part because airlines do not yet have enough demand to resume multiple flights on routes like Dubai-London, Singapore-Mumbai and Sydney-Los Angeles.

ALSO READ – Singapore Airlines resume services from Mumbai with Airbus A380 jumbo

A380 superjumbo jet was first delivered to Singapore Airlines on 15 October 2007 and entered service on 25 October.

One airline boss left unsurprised by the partial comeback is Tim Clark, president of Emirates. It is by far the biggest customer after ordering a total of 123 jets for its Dubai hub. Clark fought in vain to persuade Airbus to re-invest in the A380 before the planemaker decided in 2019 to end output.

Emirates is now retrofitting many of these jets with premium-economy seats, a class that’s proving popular with leisure travellers with money to burn as the pandemic fades. The airline put tickets for its premium economy seats on sale from June 1 on routes to London, Paris and Sydney.

“Everybody’s been struggling with capacity. I’ve watched it all; people saying that the trend is over. If you want to do that you will regret it. I recall myself saying about the industry-wide shift to smaller jets. And now what happens is you are having to reactivate A380s.”

Tim Clark, President, Emirates

Emirates’ superjumbo fleet has not been immune from the crisis, however, with dozens parked and currently out of use.

Qatar Airways Chief Executive Akbar Al Baker said the A380, which the airline has pulled out of retirement after a dispute with Airbus over newer A350s, remains uneconomic to fly. Whatever its long-term future, the superjumbo is unlikely to fulfil its original vision as a luxury flagship, instead of carving out a humbler role as a workhorse to cover busy periods.

Qatar Airways Chief Executive Akbar Al Baker said the A380 remains uneconomic to fly.

“If you want to ramp up capacity you need to bring back the big bird,” said Subhas Menon, director-general of the Association of Asia Pacific Airlines. “They will need that or otherwise they will not be able to meet the expectations of the consumer.”

A380 superjumbo jet 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, after the largest customer, Emirates reduced its last order in February 2019, Airbus announced that A380 production would end in 2021. On 16 December 2021, Emirates received its 123rd A380, which was the 251st and last delivered by Airbus. The USD 25 billion investment was not recouped.

On 16 December 2021, Emirates received its 123rd A380, which was the 251st and last delivered by Airbus.

ALSO READ – 14 years after its first flight, Airbus bids final adieu to the A380

The full-length double-deck aircraft has a typical seating for 525 passengers, with a maximum certified capacity of 853 passengers. The quad jet is powered by Engine Alliance GP7200 or Rolls-Royce Trent 900 turbofans providing a range of 8,000 nmi (14,800 km).

As of December 2021, the global A380 fleet had completed more than 800,000 flights over 7.3 million block hours with no fatalities and no hull losses.

(With Inputs from Reuters)

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