Boeing-SIA deal: death of the A380?

Analyst says deal is grave news for the super-jumbo
A tentative deal between Singapore Airlines and Boeing for 39 widebody aircraft “almost certainly” signals the death of the Airbus A380, an aerospace analyst says.
The deal, not yet finalised, is for SIA to buy 20 Boeing 777-9s and 19 787-10 Dreamliners, worth $13.8 billion at list prices, excluding the kind of discounts usually seen in such agreements.
Last year, the airline returned the first of five A380s leased from Airbus a decade ago. The 777-9 will cut fuel and operational costs far beyond the Airbus double-decker.
This makes the “gas-guzzling” A380 “economically obsolete”, claims Saj Ahmad, chief analyst for StrategicAero Research of London.
“It almost certainly signals the death-knell for the aging and less fuel efficient A380 fleet,” he said. “There doesn’t seem to be appetite to buy more and add yet more capacity into its network when the [Asia-Pacific] region is battling to make money and generate better yields, despite cabins being fuller as a result of cheaper air fares.”
Emirates is also switching from A380s to Boeing with orders for 175 777Xs.
But other aviation analysts say the A380 isn’t dead yet.
Michel Merluzeau, a Seattle analyst at Air Insight, says the SIA-Boeing deal could be due to difficulties matching the huge A380 with air traffic at Singapore’s busy Changi airport. He added that Boeing aggressively pursued the deal as 777-9 sales had been slow.
Puget Sound Business Journal


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