Airbus Sees Robust A340 Secondary Market

By Sean Broderick
Source: AWIN First
October 04, 2013
Credit: Airbus

Airbus is projecting an active secondary market for the A340 family—an outlook that could be bolstered by Rolls-Royce’s (R-R’s) efforts to reduce shop visit costs of Trent 500 engines outfitted on -500s and -600s variants of the four-engine jet.

The airframe manufacturer’s product-support forecast sees about 325 A340s still in service in 2017, down only by about 25 from today’s total. Notably, it expects about 90 aircraft to change hands in the next four years, including 26 A340-500s/600s.

The source of secondhand A340s is no mystery, as long-time operators like Emirates Airline, Lufthansa and SAS have publicized plans to replace them with newer-generation widebodies on order. Where they will end up after being replaced is another matter.

Airbus acknowledges that the A340’s high fuel-burn is an unavoidable issue compared to similar-capacity twinjets. However, the manufacturer says that from a total operating cost standpoint, favorable lease or purchase rates and solid reliability make the A340 a competitive choice for carriers looking to boost long-haul service or add stopgap capacity while planes on order are being built.

Norwegian Air Shuttle is a prime, if extreme, case. When the Boeing 787 was grounded and its deliveries paused earlier this year, Norwegian was one of the carriers affected by the delivery delays. The carrier leased two A340-300s from HiFly to operate routes pegged for the 787. Last week, Norwegian again turned to HiFly and an A340 after grounding one of its two 787s due to persistent reliability issues.

Airbus is confident that Norwegian’s choice will be more the rule than the exception as more A340s become available.

“We are in contact with many customers for those aircraft,” says Airbus Asset Management Marketing Director Marino Modena. “We see there is a market. Today, at competitive lease rates and ownership costs, [the A340] can be a very good competitor on long-haul operations, especially where operators are awaiting delivery for long-haul aircraft.”

The A340’s range and comparable capacity to large twins have helped it maintain a supporting role in many fleets. TAP Air Portugal, for instance, took its first A340 in 1994. It recently upgraded the cabins on its four A340-300s and plans to operate them until replacement A350s are delivered near the end of the decade.

TAP Vice President-Engineering Mario Araujo says the aircraft cost about $1,800 per flight hour and their dispatch reliability is just a shade below TAP’s A330-200s. Fuel burn is higher, of course, and some upgrades—such as Future Air Navigation System avionics—have been avoided to minimize investment in the fleet.

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