A320neo will not affect A320 depreciation: Lufthansa

Source: Flightglobal.com
This story is sourced from Flightglobal.com

Lufthansa does not expect the introduction of the Airbus A320neo to have a negative impact on depreciation of its baseline A320 fleet.

The carrier is to order 30 A320neo-family aircraft which, it says, will be in addition to around 60 other A320 jets in its backlog.

But Lufthansa told an investor briefing yesterday that it "does not see any necessity to accelerate our depreciation on existing aircraft".

It says the volume of A320neos will, in the early stages, be "negligible" compared with the global baseline A320 fleet and initially there will be "only a limited inflow" of the new type.

But the carrier also points out that it is "the most aggressive depreciator" of aircraft, with a 12-year span, and it says it has the "least possible impairment issue" against other airlines.

Lufthansa also says that it is "relaxed" because the introduction of new aircraft and engines has, historically, "never led to such substantial devaluation of existing assets as some people fear now".