The fast-expanding Hainan Airlines Group (HNA Group) reported that it may cancel an order of 10 A380 aircraft with a total list price of $3.8 billion, which analysts said Sunday highlights airlines’ cautious attitude on fleet expansion amid weak market conditions.
According to Reuters Friday, Chen Feng, chairman of HNA Group, which just acquired a 48 percent stake in French airline Aigle Azur in October, said the A380s were ordered when the market was good, but now the company needs to strategize to face the gloomy global economy.
By: ThreeSpool - 12th November 2012 at 17:31
I think you have answered yourself. The cargo division of Cathay Pacific is obviously important to them, and thus they have a need for cargo capacity on passenger flights.
I am not entirely sure Hainan Airlines has a business case for the A380 either, but the cargo market doesn’t make up the proportion of the business that it does for Cathay Pacific.
By: Matt-100 - 12th November 2012 at 17:11
What you have to ask yourself is why Hong Kong Airlines (Hainan) see a demand for the A380 – while Cathay Pacific made clear they would not order the aircraft as it has a lower cargo capacity compared to the 777. (Cathay Pacific being the world’s largest carrier of international cargo)
You do have to ask yourself whether Hainan have done their research given Cathay has 66 years experience in analysing the Hong Kong air travel market.
By: ThreeSpool - 12th November 2012 at 14:35
Hainan Airlines appears to be a bit disorganised, are they sure they know what they’re doing. Announcing orders for A320s/A330s/A380s, orders for B737s/B747s/B787s, orders for EMB-145s/EMB-190s, and an order for the COMAC C919. ALl the while, operating small oddball fleets of A340-600s/B737-300s/B737-400s/B767-300ERs.
You just need to look at the rest of the groups airlines for a similar picture.
I would not be surprised to see them drop the A380 order, along with many other orders.
By: nordjet415 - 12th November 2012 at 14:11
The RR engine explosion was almost 2 years ago and the fault was found and rectified, same will happen with the fault on the Engine Alliance (engine)
As with any new type / engine, these things can happen. Remember the RB211s on the early Tristars ? oil seals, but once that was identified the engine gave no further trouble.
By: Arabella-Cox - 12th November 2012 at 11:52
What are they going to do if market conditions improve again, as they doubtless will?
Mind you, with exploding RR and EA engines, their real headache must have been trying to figure out which would be the most reliable engine option. :rolleyes:
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November 12, 2012 at 8:24 am