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Profitability of A380 questioned

Shanghai Daily, October 18, 2011

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  China's first Airbus 380, operated by China Southern Airlines, took off yesterday on its first flight from Beijing to Guangzhou but civil aviation experts question whether the huge costs of flying the superjumbo will be profitable for the carrier.

  China Southern, the largest carrier in Asia by fleet size and passenger turnover, bought five A380s from European manufacturer Airbus in 2005. The purchase propelled the airline to become the country's first and only operator of the world's biggest passenger aircraft so far.

  "The operating and maintenance costs of the A380 are higher than any other passenger jet, so it requires superb operating and management skills for its operator to make profit," said Zou Jianjun, deputy professor at the Civil Aviation Management Institute of China.

  The A380 costs approximately US$13.5 billion to develop. The airline can make profit only when the passenger load factor is higher than 65 percent, he said.

  The other Chinese carriers, including China Eastern Airlines, Shanghai Airlines and Hainan Airlines, preferred Boeing Co's 787 Dreamliner which carries about half of the superjumbo's passenger capacity.

  Zou added that China Southern's A380 faces intense competition from other airlines on possible routes from Beijing to Europe such as Emirates Airlines and Germany's Lufthansa which both also operate the superjumbo.

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