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AirAustral (UU) Will Cancel 2 A380 Order (2009)  
User currently offlineB738FlyUIA From Kazakhstan, joined Dec 2009, 557 posts, RR: 0
Posted (2 years 3 months 3 weeks 5 days 1 hour ago) and read 14457 times:
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Hi all

From CH-Avition Newsletter this morning (29.05.2012) was reading about that AirAustral (UU) that placed a order for 2 A380 in 2009 will cancel there order:

Quote:
Air Austral (UU, St. Denis de la Réunion Roland Garros (RUN)) has announced that it will cancel its order for two A380-800s originally placed in 2009. It had planned to use the aircraft in a full Economy Class configuration with 840 seats which would have allowed it to have a significant cost per seat advantage over its competitors between Paris Charles de Gaulle (CDG) and St. Denis de la Réunion Roland Garros (RUN).
Source CH-Aviation

- So I only can guess they will not be able to fill the aircraft to make it profitable!!

Any thoughts?

17 replies: All unread, jump to last
 
User currently offlineebbuk From , joined Dec 1969, posts, RR:
Reply 1, posted (2 years 3 months 3 weeks 5 days ago) and read 14250 times:

Financial realities finally set in.

Quite concerned about the Skymark order too. With Europe in a slump, the business case for both airlines don't stack up anymore.


User currently offlineanfromme From Ireland, joined Feb 2012, 452 posts, RR: 11
Reply 2, posted (2 years 3 months 3 weeks 4 days 15 hours ago) and read 13062 times:

They've been contemplating a deferral/cancellation for a while now, having been unable to take delivery of a new 777-200LR as they couldn't pay for it. (They're apparently trying to sell the plane straight away, rather than taking delivery once they can pay for it.)

In that situation it definitely makes sense for them to cancel their A380s.
If anybody's interested, here's a more thorough analysis of the situation at Air Austral:
http://www.centreforaviation.com/ana...-with-air-austral-the-latest-74647



Flown on: A300B4, A310-200/-300, A319, A320-100/-200, A321-200, A330-200, A340-500/-600, A380-800, An-24, An-26, ATR42,
User currently offlineT8KE0FF From United Kingdom, joined Apr 2009, 419 posts, RR: 1
Reply 3, posted (2 years 3 months 3 weeks 4 days 14 hours ago) and read 12325 times:

I can't say that I didn't see this one coming, it's a bit of a shame really as I'd love to see an A380 with 840 seats in it - although I most definitely wouldn't want to fly on it!


RJ85 E145 E195 A319 A320 A330 A340 A380 B737 B747 B757 B767 B777 B787 DH4
User currently offline9MMPQ From Netherlands, joined Nov 2011, 315 posts, RR: 0
Reply 4, posted (2 years 3 months 3 weeks 4 days 14 hours ago) and read 11533 times:

To be honest most of us here already had a hard time seeing this coming to life without the economics of today. Perhaps the fact the plug is pulled now could be seen as something beneficial from our economic world today.


I believe in coincidences. Coincidences happen every day. But I don't trust coincidences.
User currently offlineSepulTALLICA From Niger, joined Sep 2009, 222 posts, RR: 0
Reply 5, posted (2 years 3 months 3 weeks 4 days 13 hours ago) and read 11408 times:

I always struggled with this airline and its business model.

I can remember them flying to Joburg and Harare with their 733s back in the 90s. Then hearing that they had 777s on order was a real eye opener 'cos i had always figured UU was a small time carrier eking out a niche for itself in a podunk part of the French empire.

Is their focus market that of Reunion in itself, in which case, is there enough demand for full 777s let alone 800 seat A380s?

Or are they focussed more on being feeders to Oz, Caledonia, Mauritius and the Comoros?



Chinokanganwa idemo; Chitsiga hachikanganwe. ✈
User currently offlineoneworld77 From United Kingdom, joined Sep 2008, 238 posts, RR: 0
Reply 6, posted (2 years 3 months 3 weeks 4 days 13 hours ago) and read 11215 times:

Interesting link anfromme....interesting to see UU operating RUN-MAA-BKK on a 737-800!! Bit like that Bangladeshi Carrier (was it United Airways) which used to operate LGW-IST-XXX-DAC on an MD80!

UU have always been good and the CDG-RUN-SYD was a great alternative to the usual kangaroo option. Great service - empty flight. I've always wondered why MK and UU havn't exploited their options. Although at the bottom end of the market, I'm sure there would be a market who would prefer to sun on the beach/pool in RUN or MRU than sweat it out in SIN or BKK enroute to SYD.



Flown - EI;BA;RE;FR;WW;TW;TS;US;JP;JT;AT;QF;JQ;VB;NC;TR;D7;AA;IB;AF;SN;LX;SR;LH;AY;CX;CP;9K;9W;IX;AI;IC;EK;EY;GF;QR;BE;N
User currently offlinesomething From United Kingdom, joined May 2011, 1633 posts, RR: 21
Reply 7, posted (2 years 3 months 3 weeks 4 days 12 hours ago) and read 10513 times:

I can't help but think this is only half the story. RUN is not even serviced by EK, so that a passenger flux to cheaper operations could be assumed.

Didn't France subsidize air travel between their oversea departments, or whatever these territories are legally refered to? Having these subsidies terminated alone should kill off travel to these markets substantially, as it is almost entirely sub-low yielding.

Long term, I could see AF's humorously dense configured 77W to be the only survivor on the route. If EK enters the market, and the market becomes unsubsidized, they won't probably be able to keep that up on a daily basis.



..sick of it. -K. Pilkington.
User currently offlinePHX787 From Japan, joined Mar 2012, 7578 posts, RR: 18
Reply 8, posted (2 years 3 months 3 weeks 4 days 12 hours ago) and read 10304 times:

Quoting ebbuk (Reply 1):
Quite concerned about the Skymark order too.

Skymark's intended destinations were LAX, JFK, and LHR, right? I don't think that they would cancel the order. It seems like they're committed to it so far.



次は、渋谷、渋谷。出口は、右側です。電車とホームの間は広く開いておりますので、足元に注意下さい。
User currently offlineMD2012 From United States of America, joined May 2012, 12 posts, RR: 0
Reply 9, posted (2 years 3 months 3 weeks 4 days 10 hours ago) and read 9212 times:

EK will pick those 2 orders up

User currently offlinegoldorak From France, joined Sep 2006, 1846 posts, RR: 4
Reply 10, posted (2 years 3 months 3 weeks 4 days 10 hours ago) and read 9025 times:

Of course the current economic climate and price of kerosene do not help, but the main responsible of this situation is UU with their crazy and irrational money-bleeding routes like RUN-BKK, RUN-SYD-NOU. I'm sure they would have been able to fill a high density A380 on CDG-RUN.

User currently offlinenicode From France, joined May 2012, 89 posts, RR: 0
Reply 11, posted (2 years 3 months 3 weeks 4 days 9 hours ago) and read 8868 times:

Quoting something (Reply 7):
Long term, I could see AF's humorously dense configured 77W to be the only survivor on the route. If EK enters the market, and the market becomes unsubsidized, they won't probably be able to keep that up on a daily basis.

Corsair is also on ORY-RUN on a daily basis with their high density 744.

It is also possible to reach RUN via MRU from CDG.


User currently offlinenicode From France, joined May 2012, 89 posts, RR: 0
Reply 12, posted (2 years 3 months 3 weeks 4 days 9 hours ago) and read 8839 times:

Please delete (double post)

[Edited 2012-05-29 14:36:52]

User currently offlineirelayer From United States of America, joined Jul 2005, 1073 posts, RR: 2
Reply 13, posted (2 years 3 months 3 weeks 4 days 2 hours ago) and read 5517 times:

The greatest takeaway from that article:

Air France and American Airlines, two of the biggest airlines in the world operate on -1 and -4% margins. Wow.

-IR


User currently offlinelightsaber From United States of America, joined Jan 2005, 13134 posts, RR: 100
Reply 14, posted (2 years 3 months 3 weeks 4 days 1 hour ago) and read 4935 times:
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I'm sad to hear this. I think the 800+ Y A380 has merit. However, it looks like we'll have to wait for someone else to try. High leisure destinations from Europe will need some time to recover.

Quoting ebbuk (Reply 1):
Quite concerned about the Skymark order too.

I'm with PHX787, the Skymark model looks ok. What is your thinking?

Lightsaber



Societies that achieve a critical mass of ideas achieve self sustaining growth; others stagnate.
User currently offlineLifelinerOne From Netherlands, joined Nov 2003, 1922 posts, RR: 7
Reply 15, posted (2 years 3 months 3 weeks 3 days 22 hours ago) and read 4570 times:

Is there any other source available than CH Aviation? There's nothing in the news section of the Air Austral site and Airbus.com is also silent on the matter.

Cheers!   



Only Those Who Sleep Don't Make Mistakes
User currently offlineanfromme From Ireland, joined Feb 2012, 452 posts, RR: 11
Reply 16, posted (2 years 3 months 3 weeks 3 days 22 hours ago) and read 4465 times:

Quoting LifelinerOne (Reply 15):
Is there any other source available than CH Aviation?

Nothing confirming that they have cancelled (so far), besides CH-Aviation, but there is the lengthy article I included in my first post in this thread which did quote Air Austral as saying that they intend to defer or cancel their order, with a definitive decision to be made by the end of June (pending discussions with Airbus).



Flown on: A300B4, A310-200/-300, A319, A320-100/-200, A321-200, A330-200, A340-500/-600, A380-800, An-24, An-26, ATR42,
User currently offlineAviaco From Germany, joined May 2012, 34 posts, RR: 0
Reply 17, posted (2 years 3 months 3 weeks 3 days 6 hours ago) and read 3616 times:

Quoting something (Reply 7):

[quote=something,reply=7]If EK enters the market, and the market becomes unsubsidized, they won't probably be able to keep that up on a daily basis.

This is technically a domestic flight. I don't see EK getting 5th freedom in France.


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