Air France’s A380 Announcement Limits Asset Managers

Air France has recently announced its decision that it will not be renewing leases for its A380s. The decision was resulted in more pressure felt from managers controlling closed-end A380 funds as they will be forced to search for new lessors to arrange sale agreements for parts.

Frank Netscher, Senior Analyst at Scope Analysis, shares that Airbus’ A380 has gained more traction with passengers rather than with airlines. This has influenced the funds being traded at 46 percent on average of their original worth.

The lack of interest from operators towards the A380 has mainly resulted from a lack of routes to fly the aircraft on a regular basis in order to fill up the expanded seating capacity, hosting more than 500 passengers.

The A380 is more expensive to fly in comparison to other aircraft such as Boeing’s 787s and 777s, as well as the Airbus A350.

Five A380s have been returned to Air France and the carrier is still trying to find other operators for the aircraft.

Source: Aviator