At a conference in Dublin, the CEO of International Airlines Group, better known as IAG, said that the company is looking to lease six used Airbus A380 superjumbo jets to add to the 10 that IAG’s British Airways already flies and the two remaining to be delivered from Airbus.
CEO Willie Walsh also said that the company may also look at leasing more Boeing Co. (NYSE: BA) 777-300ERs. According to Planespotters, British Airways has 12 777-300s and 46 777-200s in its existing fleet. According to a report at Leeham News, Walsh said that the 777-300ER is a “very effective and flexible aircraft.”
Regarding the A380, Walsh said that it is a “fantastic aircraft when you can fill it,” but it lacks flexibility. Leeham News cites Walsh’s example:
[W]hen it fits it brings ‘fantastic results.’ Not only could we lower cost by flying two A380 instead of three 747 between [Heathrow and Los Angeles] or one A380 and one Boeing 777 to Washington instead of three 777, but we also gained a precious Heathrow slot in each of those changes.
Walsh also pointed out that British Airways has never before leased used aircraft and that leasing rather than buying shows how the airline has change: “[W]e are prepared to adapt to a changing market and to take opportunities that come our way.”
[nativounit]
While this may be good news for the concept of the A380, it is not especially good news for Airbus. Walsh also noted that IAG has options on more of the planes, but that they are too expensive to buy. Malaysia Airlines owns six A380-800s with less than four years of use and already has said that it is looking to sell some of the planes as the airline retrenches.
British Airways has no unfilled orders for any model of the Boeing 777.
Top Gaining Stocks
Top Losing Stocks