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AirAustral (UU) Will Cancel 2 A380 Order (2009)

Tue May 29, 2012 5:30 am

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?
 
ebbuk
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RE: AirAustral (UU) Will Cancel 2 A380 Order (2009)

Tue May 29, 2012 6:08 am

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.
 
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anfromme
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RE: AirAustral (UU) Will Cancel 2 A380 Order (2009)

Tue May 29, 2012 2:46 pm

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
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T8KE0FF
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RE: AirAustral (UU) Will Cancel 2 A380 Order (2009)

Tue May 29, 2012 3:59 pm

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!
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9MMPQ
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RE: AirAustral (UU) Will Cancel 2 A380 Order (2009)

Tue May 29, 2012 4:45 pm

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.
 
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Sepultallica
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RE: AirAustral (UU) Will Cancel 2 A380 Order (2009)

Tue May 29, 2012 4:52 pm

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?
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oneworld77
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RE: AirAustral (UU) Will Cancel 2 A380 Order (2009)

Tue May 29, 2012 5:04 pm

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.
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something
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RE: AirAustral (UU) Will Cancel 2 A380 Order (2009)

Tue May 29, 2012 5:48 pm

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.
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PHX787
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RE: AirAustral (UU) Will Cancel 2 A380 Order (2009)

Tue May 29, 2012 6:03 pm

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.
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md2012
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RE: AirAustral (UU) Will Cancel 2 A380 Order (2009)

Tue May 29, 2012 8:22 pm

EK will pick those 2 orders up
 
goldorak
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RE: AirAustral (UU) Will Cancel 2 A380 Order (2009)

Tue May 29, 2012 8:39 pm

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.
 
nicode
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RE: AirAustral (UU) Will Cancel 2 A380 Order (2009)

Tue May 29, 2012 9:12 pm

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.
 
nicode
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RE: AirAustral (UU) Will Cancel 2 A380 Order (2009)

Tue May 29, 2012 9:21 pm

Please delete (double post)

[Edited 2012-05-29 14:36:52]
 
irelayer
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RE: AirAustral (UU) Will Cancel 2 A380 Order (2009)

Wed May 30, 2012 4:03 am

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
 
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lightsaber
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RE: AirAustral (UU) Will Cancel 2 A380 Order (2009)

Wed May 30, 2012 5:19 am

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
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LifelinerOne
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RE: AirAustral (UU) Will Cancel 2 A380 Order (2009)

Wed May 30, 2012 7:47 am

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!   
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anfromme
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RE: AirAustral (UU) Will Cancel 2 A380 Order (2009)

Wed May 30, 2012 8:04 am

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).
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Aviaco
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RE: AirAustral (UU) Will Cancel 2 A380 Order (2009)

Thu May 31, 2012 12:44 am

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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