How the Airbus A380 superjumbo went from an airline status symbol to being sold for spare parts in just 10 years

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How the Airbus A380 superjumbo went from an airline status symbol to being sold for spare parts in just 10 years

Singapore Airlines Airbus A380

Flickr / Aero Icarus

A Singapore Airbus A380 superjumbo.

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  • The Airbus A380 is struggling to find takers in the second-hand market.
  • Dr. Peters Group announced that it will strip down two off-lease Airbus A380s and sell them as spare parts.
  • The German investment firm expects the pair of ex-Singapore Airlines planes to generate $80 million apiece.

The Airbus A380 entered service in 2008 with great fanfare. A decade later, the arrival of an Airbus Superjumbo remains an event to behold.

But, the A380 has not been the game-changer Airbus had hoped it would become when it conceived the massive double-decker. This is especially the case on the financial front.

For much of its service life, Airbus has struggled to find airlines willing to put the A380 into service. And now aircraft leasing companies are facing the same struggles. In fact, the market for second hand, off-lease A380s is virtually non-existent.

On Tuesday, Dr. Peters Group announced that two of its Airbus A380s will be stripped down and sold for spare parts after the company failed to find any takers for its second-hand superjumbos.

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"The market for the A380-800 aircraft type has not developed positively in recent years," Dr. Peters Group CEO Anselm Gehling said in a statement. "Some airlines have canceled orders from Airbus, while others have opted for smaller long-haul jets."

The German investment firm expects the two ex-Singapore Airlines planes to generate $80 million of income each.

The depreciation is fairly jarring when you consider that a new A380 carried a $300 million price tag back in 2007 when these planes were built. While a new A380 today has a list price of $445.6 million.

According to Reuters, the $40 million it costs to refurbish a used A380's interior is a major turn off for many in the market for a second-hand superjumbo.

The two soon-to-be-disassembled planes are believed to be the third and fifth A380s ever built. A third ex-Singapore A380 did find a new a home. The sixth A380s built will enter into service with Portuguese charter airline Hi-Fly this summer.

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Here's a closer look at the turbulent history of the Airbus A380:

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On April 27, 2005, at 10:30 a.m. local time, the first Airbus A380 prototype opened up the throttles of its four massive turbofan engines.

On April 27, 2005, at 10:30 a.m. local time, the first Airbus A380 prototype opened up the throttles of its four massive turbofan engines.

As the superjumbo took off from Airbus' facility in Toulouse, France, the largest commercial airliner around was actually flying.

As the superjumbo took off from Airbus' facility in Toulouse, France, the largest commercial airliner around was actually flying.
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But the A380's story starts decades earlier.

But the A380's story starts decades earlier.

During the 1970s, Airbus' A300B was the new kid in the world of commercial airliners.

During the 1970s, Airbus' A300B was the new kid in the world of commercial airliners.
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It spent the decade trying to break into a market dominated by the Boeing 747 jumbo jet.

It spent the decade trying to break into a market dominated by the Boeing 747 jumbo jet.

The 747's size, performance, and efficiency helped lower operating costs for airlines enough to make air travel affordable for the masses.

The 747's size, performance, and efficiency helped lower operating costs for airlines enough to make air travel affordable for the masses.
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By the early 1990s, Airbus was in a much different position. Its narrow-body A320 family, which helped pioneer civilian fly-by-wire technology, was well on its way to becoming the second-best-selling jetliner in history.

By the early 1990s, Airbus was in a much different position. Its narrow-body A320 family, which helped pioneer civilian fly-by-wire technology, was well on its way to becoming the second-best-selling jetliner in history.

At the same time, the company unveiled its new A330 ...

At the same time, the company unveiled its new A330 ...
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... and A340 family wide-body jets. Now, Airbus has set its sights on a bigger target ...

... and A340 family wide-body jets. Now, Airbus has set its sights on a bigger target ...

... the Boeing 747-400. Airbus wanted to produce an aircraft even bigger than Boeing's jumbo jet — with lower operating costs.

... the Boeing 747-400. Airbus wanted to produce an aircraft even bigger than Boeing's jumbo jet — with lower operating costs.
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The result was a double-decker concept called the A3XX.

The result was a double-decker concept called the A3XX.

The A3XX would eventually morph into the A380 superjumbo.

The A3XX would eventually morph into the A380 superjumbo.
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The A380 is built in a 1.6-million-square-foot assembly plant at Airbus headquarters in Toulouse.

The A380 is built in a 1.6-million-square-foot assembly plant at Airbus headquarters in Toulouse.

At 239 feet long, 79 feet tall, and 262 feet from wingtip to wingtip, it's a big boy!

At 239 feet long, 79 feet tall, and 262 feet from wingtip to wingtip, it's a big boy!
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Only the Boeing 747-8 is longer at 250 feet and two inches.

Only the Boeing 747-8 is longer at 250 feet and two inches.

According to Airbus, in a typical four-class seating arrangement, the superjumbo can carry as many as 544 passengers, with a range of more than 9,400 miles.

According to Airbus, in a typical four-class seating arrangement, the superjumbo can carry as many as 544 passengers, with a range of more than 9,400 miles.
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Power for the A380 comes from of quartet of engines from Rolls-Royce or Engine Alliance.

Power for the A380 comes from of quartet of engines from Rolls-Royce or Engine Alliance.

The A380's flight crew operates from a state-of-the-art glass cockpit. Like all modern Airbus jets, the aircraft is flown using a side stick, with a fly-by-wire control system.

The A380's flight crew operates from a state-of-the-art glass cockpit. Like all modern Airbus jets, the aircraft is flown using a side stick, with a fly-by-wire control system.
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After its maiden flight, the A380 completed a flight-test program before entering commercial service in 2007.

After its maiden flight, the A380 completed a flight-test program before entering commercial service in 2007.

As an airliner, the A380 promised luxury and comfort on an unprecedented scale.

As an airliner, the A380 promised luxury and comfort on an unprecedented scale.
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The Airbus delivered. Premium features, such as walk-up bars ...

The Airbus delivered. Premium features, such as walk-up bars ...

... private lounges ...

... private lounges ...
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... and bathrooms with showers set the superjumbo apart from its rivals.

... and bathrooms with showers set the superjumbo apart from its rivals.

And then there are the first-class suites ...

And then there are the first-class suites ...
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... the even larger first-class suites ...

... the even larger first-class suites ...

... and then there's Etihad's The Residence.

... and then there's Etihad's The Residence.
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It's a 125-square-foot flying home complete with a private bedroom, living room, and shower. There's also a personal butler on call at all times.

It's a 125-square-foot flying home complete with a private bedroom, living room, and shower. There's also a personal butler on call at all times.

On October 15, 2007, Singapore Airlines took delivery of the first production A380.

On October 15, 2007, Singapore Airlines took delivery of the first production A380.
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Soon, the A380 entered service with a host of global airlines such as Korean Air ...

Soon, the A380 entered service with a host of global airlines such as Korean Air ...

... Lufthansa ...

... Lufthansa ...
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... Qantas ...

... Qantas ...

... British Airways ...

... British Airways ...
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... Malaysia Airlines ...

... Malaysia Airlines ...

... Thai Airways ...

... Thai Airways ...
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... Air France ...

... Air France ...

... Qatar Airways ...

... Qatar Airways ...
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... Asiana Airlines ...

... Asiana Airlines ...

... China Southern ...

... China Southern ...
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... and Etihad.

... and Etihad.

Two new airlines are set to join the club with Japan's All Nippon Airways taking on several new A380s.

Two new airlines are set to join the club with Japan's All Nippon Airways taking on several new A380s.
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While Portuguese charter airline Hi-Fly is taking on an off-lease, ex-Singapore Airlines A380.

While Portuguese charter airline Hi-Fly is taking on an off-lease, ex-Singapore Airlines A380.

But no customer is more important than Emirates and its CEO, Shiekh Ahmed bin Saeed Al Maktoum.

But no customer is more important than Emirates and its CEO, Shiekh Ahmed bin Saeed Al Maktoum.
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According to Airbus, Emirates currently accounts for 162 of the 331 A380s ever ordered. This includes the 20 Superjumbos Emirates ordered in January 2018 that is expected to keep the A380 production moving for the next decade.

According to Airbus, Emirates currently accounts for 162 of the 331 A380s ever ordered. This includes the 20 Superjumbos Emirates ordered in January 2018 that is expected to keep the A380 production moving for the next decade.

In fact, Emirates boasts a fleet of more than 100 A380s. No other airline operates more than 19 of the double-deckers.

In fact, Emirates boasts a fleet of more than 100 A380s. No other airline operates more than 19 of the double-deckers.
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Why do Emirates love the A380 so much, at a time when most of the airlines in the world have stayed away?

Why do Emirates love the A380 so much, at a time when most of the airlines in the world have stayed away?

Emirates is a predominantly long-haul international airline whose business is built around funneling millions of passengers through its palatial central hub in Dubai and then on to destinations around the world.

Emirates is a predominantly long-haul international airline whose business is built around funneling millions of passengers through its palatial central hub in Dubai and then on to destinations around the world.
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As a result, Emirates needs an aircraft that can carry a lot of passengers for very long distances — a perfect job for the A380.

As a result, Emirates needs an aircraft that can carry a lot of passengers for very long distances — a perfect job for the A380.

But few airlines use Emirates' strategy.

But few airlines use Emirates' strategy.
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Instead of an Emirates' dedicated hub-and-spoke route model, airlines have moved more toward point-to-point flying. This has allowed smaller, more efficient twinjets like the Boeing 777 ...

Instead of an Emirates' dedicated hub-and-spoke route model, airlines have moved more toward point-to-point flying. This has allowed smaller, more efficient twinjets like the Boeing 777 ...

... and the Airbus A330 to become the dominant forces in long-haul flying.

... and the Airbus A330 to become the dominant forces in long-haul flying.
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Smaller next-generation composite wide-bodies like the Boeing 787 Dreamliner offer airlines more flexibility and less risk. According to the CEO of Qantas, Alan Joyce, it costs less to operate two Dreamliners than it does to fly a single A380.

Smaller next-generation composite wide-bodies like the Boeing 787 Dreamliner offer airlines more flexibility and less risk. According to the CEO of Qantas, Alan Joyce, it costs less to operate two Dreamliners than it does to fly a single A380.

As a result, the A380 never developed into a true workhorse like the 747. Instead, it has been relegated to a niche aircraft economically feasible only on routes with heavy airport congestion.

As a result, the A380 never developed into a true workhorse like the 747. Instead, it has been relegated to a niche aircraft economically feasible only on routes with heavy airport congestion.
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Thus, new orders have been hard to come by. And with fuel prices once again skyrocketing, life won't get any easier for the gargantuan jetliner.

Thus, new orders have been hard to come by. And with fuel prices once again skyrocketing, life won't get any easier for the gargantuan jetliner.

The Boeing 747 is also struggling to survive, with sales of its passenger version all but dried up. Only the freighter version remains in production — at a rate of just one plane every two months.

The Boeing 747 is also struggling to survive, with sales of its passenger version all but dried up. Only the freighter version remains in production — at a rate of just one plane every two months.
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With early production A380s coming to the end of their 10-year leases, Airbus will likely have to contend with competition for its own used planes. However, early signs for the second-hand market aren't promising. German investment firm Dr. Peters Group has decided to sell its off-lease A380s for spare parts after it couldn't find any takers for the plane.

With early production A380s coming to the end of their 10-year leases, Airbus will likely have to contend with competition for its own used planes. However, early signs for the second-hand market aren't promising. German investment firm Dr. Peters Group has decided to sell its off-lease A380s for spare parts after it couldn't find any takers for the plane.

Emirates' president, Sir Tim Clark, has for years pushed Airbus to make a more cost-effective version of the plane with upgraded aerodynamics and a new fuel-efficient engine called the A380neo.

Emirates' president, Sir Tim Clark, has for years pushed Airbus to make a more cost-effective version of the plane with upgraded aerodynamics and a new fuel-efficient engine called the A380neo.
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Airbus has been reluctant to invest the kind of money needed to develop a new version of the A380. But earlier this year, Airbus offered its customers a moderately updated version of the plane, called the A380 Plus, with room for 80 more people and new winglets for better fuel economy. So far, there have been no takers.

Airbus has been reluctant to invest the kind of money needed to develop a new version of the A380. But earlier this year, Airbus offered its customers a moderately updated version of the plane, called the A380 Plus, with room for 80 more people and new winglets for better fuel economy. So far, there have been no takers.

Unlike with the Boeing 747, the A380 freighter never came to fruition, so Airbus won't be able to subsist on sales of cargo planes while it waits for passenger-plane sales to rebound.

Unlike with the Boeing 747, the A380 freighter never came to fruition, so Airbus won't be able to subsist on sales of cargo planes while it waits for passenger-plane sales to rebound.
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For Airbus, its search for the next superjumbo customer continues.

For Airbus, its search for the next superjumbo customer continues.