Global Airlines, a new entrant in the field, thinks it can make money flying A380s well into the future, even though most of the super-jumbo’s original owners have found it to be expensive to operate and difficult to sell enough seats for a profit.
With most of the major airlines phasing out their fleets of A380 super-jumbos and even Emirates, which operated half the A380s ever built looking into a different future, Global has a different take. It believes that the initial cost of the plane, about $275 million apiece, was the problem, and that it can make money flying discarded planes that it is buying for low tens of millions each. So far, it’s signed contracts for four.
Global’s founder, travel entrepreneur James Asquith, thinks there’s money to be made competing with the major carriers on trans-Atlantic routes with the cheap planes. He’s told press that “Interest and depreciation on a ticket is around 40 per cent of the cost to pay that aircraft back over 15 to 20 years. It’s a significant chunk of the fee that we’ve taken out. No lessors, no guns against our head, no debt.”
Although no date has been set for beginning operations, Asquith says they will be in the air “sooner than you think.” Global has teamed up with a Portuguese charter operator, HiFly, which has the needed licenses and experience with the A380, and will operate them for Global.
