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Monday, December 30, 2024

What conundrum do remaining A380 operators face? – EPSILON AVIATION

Hello All,

This blogger took a flight from Munich to New York JFK airport yesterday with Lufthansa’s A380. After facing a permanent grounding, the German carrier reactivated the Superjumbo (8 out of 14) due to Boeing’s persistent 777-9 delays and the faster-than-envisioned passenger traffic recovery.

This post will explore a challenging decision that the remaining A380 operators will need to make.

An outdated cabin product

The Airbus A380 has a very comfortable 10-abreast economy-class cabin. However, Lufthansa was among the first A380 operators. It means that the in-flight entertainment system that was installed in Economy class is now outdated.

The screen does not work well (it is not as bad as British Airways’ old 747-400s but not much better), and it has an awkward headset and USB port on the armrest instead of the screen itself.

The business class product is not much better with the old 2-2-2 cabin configuration. While some travelers (notably couples) might prefer this, private suites with direct aisle access are what high-paying business-class passengers now expect.

Lufthansa is not the only airline with outdated Superjumbo business-class products: British Airways and Korean Air have the same issue of a 2-2-2 cabin configuration.

A low-cost upgrade for Lufthansa

Lufthansa has decided to keep its A380 for the medium term, so it will upgrade its business class seat without naming it Allegris. It will take already available business class seats instead of going for a bespoke certification like for its 777Xs and A350s. Lufthansa will also replace the economy class in-flight entertainment.

Upgrade magnitude depends on Superjumbo network suitability

British Airways is instead planning a more comprehensive A380 cabin upgrade. It shows that (unsurprisingly) it is possible to profitably operate a dozen Superjumbos profitably from the congested Heathrow Airport.

Emirates will retrofit almost its entire A380 fleet, showing the “all-in” bet on the aircraft.

Korean Air will instead retire its A380 fleet in the medium term. The Superjumbo was a poor investment for the carrier. An exceedingly premium LOPA (407 seats) did not help the aircraft’s financial performance across its network.

Lufthansa’s Superjumbo ambivalence

Lufthansa is instead opting for a “middle of the road” approach with a lower-cost upgrade than British Airways or Emirates. It shows the carrier’s ambivalent opinion about the Superjumbo: it can work well on a limited number of routes. Time will tell whether the type will survive another major dip in passenger traffic. The pace of deliveries and in-service performance of the 777-9 will also determine how long the A380 stays in service at the German carrier.

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