German asset manager Dr Peters has decided to part out two ex-Singapore Airlines Airbus A380s after talks with several carriers failed to produce any agreement.
Dr Peters says it held "extensive" negotiations with "various" airlines – including British Airways, Portuguese carrier Hi Fly and Iran Air – to lease or even sell the aircraft. But "alternative options" presented during the discussions "did not meet investors' requirements", says the asset manager.
As a result, it has decided to recommend to its investors at a 28 June shareholder meeting that the two aircraft be disassembled.
Parting out the two aircraft will take about two years and generate some $45 million through the component sale alone, Dr Peters says.
The company describes that figure as a "high assessment" reflecting high demand for components from A380 operators preparing for upcoming maintenance events.
US aftermarket firm VAS Aero Services will handle the component sale for the two A380s.
Dr Peters intends to continue beyond March 2019 an existing lease agreement for the jets' Rolls-Royce Trent 900 engines with the UK manufacturer "or with an airline". This will generate, per aircraft, "at least" $480,000 per month, says Dr Peters – adding that it plans to sell the engines in 2020.
Overall, Dr Peters foresees an investment return of 145-155% for the two A380s – including "currency gains already realised" – which the firm considers a "very respectable result".
The asset manager notes that it has already paid 81% of obligations for one aircraft and 72% for the other.
Chief executive Anselm Gehling states that the disassembly plan will "satisfy and possibly even exceed the current expectations of our investors".
The very-large aircraft market has "not developed positively in recent years", he says, adding: "The ongoing negative discussion about the A380-800 has not led airlines to increasingly rely on this type of aircraft."
Against this backdrop, he deems the total revenue forecast, of around $80 million per aircraft, to be an "excellent achievement".
Singapore Airlines arranged with Dr Peters the return of four A380s to the asset manager: MSNs 003, 005, 008 and 010.
The Portuguese carrier Hi Fly confirms that it is still preparing to receive its first A380 this summer, and identifies the aircraft as MSN 006. Flight Fleets Analyzer lists this as the ex-SIA aircraft 9V-SKC, which is currently in storage. Doric is identified as owner, manager and lessor of that jet.
A second A380 would join Hi Fly's fleet "only next year", says the airline, adding that it will "communicate more details... when the time is appropriate".