UnknownAirbus and Rolls-Royce have combined on a program to enhance the residual values and market viability of the A340-500 and -600, which have been removed from many airline fleets due to unfavorable economics.  Rolls-Royce has stepped up with a “four for the price of two” program in which they will guarantee engine costs at the same level for maintaining two GE90s on a Boeing .  This will help bring the economics of the A340-500/600, which suffers from unfavorable engine maintenance costs, in line with two-engined competitors.

In addition, Airbus is certifying the A340-600 to a maximum of 475 seats in all seating, in an effort to become a viable replacement for the for many carriers currently operating that type, making the aircraft more attractive to ULCC and charter operators.

Airbus has a significant number of residual value guarantees for the A340, and is taking this action to avoid potential losses from guarantees, and convince customers that the A340 can be a viable interim aircraft, if not for a longer period, before the arrives.

One potential solution to Airbus difficulties with the A340 program is waiting in the wings, as Air needs a new fleet.  With theUnknown-1 current economic sanctions likely to disappear in the near future, there is a ready potential market for the 25 A340 aircraft currently in storage.  Iran Air needs new lift, and Airbus and Rolls-Royce have new programs that will make that option economically viable.  At the current lower aircraft values, used A340s could provide Iran Air with the opportunity to re-fleet with modern aircraft quickly, at much lower capital costs than would otherwise be possible.  This is especially important in a market with multi-year backlogs for the most popular new , and the age of Iran Air’s current fleet.

Could Iran Air be a big part of  win-win solution to the A340 dilemma?  makes sense for both parties, so stay tuned.

Please follow and like us:
%d bloggers like this: