Monday, June 17, 2013

Doric orders 20 Airbus superjumbos


European aircraft maker Airbus made a big breakthrough for its flagship A380 superjumbo airliner on Monday, taking the first order for the plane this year after a setback over cracks in the wings.

The provisional order, worth about $8.0 billion (6.0 billion euros) at list prices, came from Doric Asset Finance, a leasing group which will make the A380 giant accessible to many airlines via rental agreements.

The deal, important for Airbus in its efforts to boost sales of the aircraft, the giant of the skies, comes just three days after another milestone, the maiden flight of its new long-range A350 aircraft.

Airbus head Fabrice Bregier told the Wall Street Journal newspaper on the opening of the Paris Air Show at Le Bourget on Monday that the firm hoped to more than double its operating profit in the next two years.

It intended to raise the operating margin from 4.0 per cent to 10.0 per cent, he said, adding that this target excluded the launch costs of the A350.

Last year was a difficult one for the A380 superjumbo because micro cracks were detected where the wings join the fuselage.

Airbus is correcting the problem, but the manufacturer had taken no orders for the A380 since the beginning of 2013.

Boosting sales of the A380 is of particular importance to Airbus, which said in a statement that with this investment Doric would be able to offer the aircraft on tailor-made terms for airlines.

This would facilitate use of the plane by airlines around the world, Airbus said.

Doric Asset Finance has provided finance for orders by airlines such as Emirates and Singapore Airlines.

Under leasing arrangements, an airline enters into a rental agreement with the leasing company, thereby avoiding having to find the purchase capital from its own resources.

Airbus said that Doric was the third-biggest such company in the world, in terms of value, providing leasing arrangements for jumbo aircraft and was the biggest in terms of managing such deals for the A380 superjumbo.

Doric currently manages aircraft worth $6.0 billion, including 18 A380 airliners purchased under sale and leaseback agreements, so the latest deal represents a substantial increase for the leasing group.

The latest agreement in principle, or outline deal, is expected to be confirmed in a few months.

SOURCE

More A380s available for lease from Doric after this purchase, and it is a real huge one, after Airbus receiving naught order for a good half a year of 2013. Perhaps this should kick start the ball and keep it rolling through the rest of the airshow.


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