Emirates is doubling down on the Airbus A380 as it bought five of the superjumbo jets from aircraft lessor Doric Nimrod. This isn’t a net increase in the fleet since these aircraft were already leased out to the airline on 12-year terms. The airline is simply buying assets it had previously leased.
The UAE-based carrier is paying approximately $40 million for each of the five aircraft. This will be in addition to two other A380s that Emirates purchased from the same lessor last year when the respective leases were up.
New A380s went for anywhere between $300 million to $400 million at sticker price, though most were purchased at likely around half that price. The current used market is around $50 million per airplane and there are no more being produced.
Average life cycles for the aircraft are expected to be 20 years and with around eight years of life expectancy remaining that works out to $5 million a year.
The airline is also working in advance to secure support for the aircraft into the future since the airline expects to be flying A380s for a minimum of another 15 years. Last year the airline signed agreements worth over $1.5 billion to create a network of partners for a variety of maintenance, repair, and overhaul services along with parts provision, component repairs, and technical support.
This includes companies such as Safran, Honeywell, Pratt & Whitney, Collins Aerospace, and more to ensure long-term support for the aircraft.
