UnknownAirbus and Rolls-Royce have combined on a program to enhance the residual values and market viability of the -500 and -600, which have been removed from many 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 maintenance costs at the same level for maintaining two GE90s on a Boeing 777-300ER.  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 -600 to a maximum of 475 seats in all economy seating, in an effort to become a viable for the 747-400 for many carriers currently operating that type, making the more attractive to ULCC and 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 can be a viable interim aircraft, if not for a longer period, before the A350 arrives.

One potential solution to Airbus difficulties with the program is waiting in the wings, as Iran 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 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 models, and the age of Iran Air’s current fleet.

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

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