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Fri, Sep 16, 2016

Singapore Airlines Dumps First A380 Lease

Will Not Extend Agreement That Expires In October 2017

Singapore Airlines was the first buyer of the Airbus A380 superjumbo airliner, and is still the second-largest customer for the giant-sized airplane. But the airline appears to be re-thinking its use of the airplane. On Wednesday, the carrier said it would not be renewing the lease on its first A380, which expires in October 2017.

Airbus has struggled to find buyers for its most expensive airliner, on which it spent $15 billion in development. The planemaker announced in June that it would be cutting production by more than half, down from 27 planes per year to just one per month. Orders over the past few years have been scarce, according to a report in the Wall Street Journal.

The A380 has been hurt by smaller aircraft like its sister A350XWB and Boeing's Dreamliner, which can fly long distances nonstop and bypass large hub airports, according to the report.

Singapore currently operates 19 A380s, the first five of which were taken on 10-year lease agreements. The carrier said through a spokesman it would make decision on the other four leases at a later date.

(Image from file)

FMI: www.airbus.com

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