AF185
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Private A380 Already Being Re-sold

Fri Feb 15, 2013 3:22 am

Hi all,

According to Bloomberg, Prince Alwaleed re-sold his private A380 in order to invest in Middle Eastern companies.

Quote:
Prince Alwaleed Bin Talal Al Saud, the world’s 15th-richest person, sold his Airbus A380 jet plane in the past four months, according to Shadi Sanbar, chief financial officer of the billionaire’s Kingdom Holdings Co.

The 57-year-old, who bought the plane in 2007, used the proceeds from the sale to expand his investments in Saudi Arabia and the greater Middle East, Sanbar said in an e-mail to Bloomberg News. He would not disclose the buyer or the sale price, citing “strict confidentiality” agreements.

Any thoughts on the new owner? My guess is it's a new private owner considering the interior investment made for that frame, however what could be the feasibility of re-selling to a regular airline?

Whole story here: http://www.bloomberg.com/news/2013-0...o-invest-in-middle-east-firms.html
 
BMI727
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RE: Private A380 Already Being Re-sold

Fri Feb 15, 2013 3:31 am

It's not at all uncommon for nearly new business jets or production slots to be re-sold. For that matter cars are similar. I know that Gulfstream and Lexus have taken steps to fight the practice, but it's still alive and well for the most part.
Why do Aerospace Engineering students have to turn things in on time?
 
WingedMigrator
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RE: Private A380 Already Being Re-sold

Fri Feb 15, 2013 4:37 am

Heh... I didn't know that word of my recent purchase would get out so quickly.  
 
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lightsaber
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RE: Private A380 Already Being Re-sold

Fri Feb 15, 2013 5:28 am

Rough choice... big jet or buy part of a city...   

Quoting WingedMigrator (Reply 2):
Heh... I didn't know that word of my recent purchase would get out so quickly.

Dude... are you going to add spinners?  

Lightsaber
"They did not know it was impossible, so they did it!" - Mark Twain
 
dc1030cf
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RE: Private A380 Already Being Re-sold

Fri Feb 15, 2013 6:15 am

I just read the same from this link. It has some interesting points http://verovenia.wordpress.com/  
 
RickNRoll
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RE: Private A380 Already Being Re-sold

Fri Feb 15, 2013 6:15 am

Quoting AF185 (Thread starter):
According to Bloomberg, Prince Alwaleed re-sold his private A380 in order to invest in Middle Eastern companies.

Too much plane? Not enough range? Waiting for the HGW version?
 
PHX787
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RE: Private A380 Already Being Re-sold

Fri Feb 15, 2013 6:23 am

What's the status on this airplane reaching completion anyway? Wasn't there a recent thread or post showing the details on the aircraft (including a garage in the bottom level of the aircraft?)

Quoting lightsaber (Reply 3):
Dude... are you going to add spinners?

These are the only spinners I'll ever need      
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Pellegrine
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RE: Private A380 Already Being Re-sold

Fri Feb 15, 2013 11:14 am

Quoting PHX787 (Reply 6):
What's the status on this airplane reaching completion anyway? Wasn't there a recent thread or post showing the details on the aircraft (including a garage in the bottom level of the aircraft?)

It never had any interior customization done. I wouldn't want an old, first off the line, stitched-up aircraft anyway. He's either happy with his 747-400, or willing to wait for a new build.
oh boy, here we go!!!
 
Devilfish
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RE: Private A380 Already Being Re-sold

Fri Feb 15, 2013 11:50 am

Quoting Pellegrine (Reply 7):

It never had any interior customization done.

It was reported that completion centers were wary of taking on the massive project.....

http://www.flightglobal.com/news/art...s/a380-completions-squeeze-350719/

Quote:
"However, when it comes to the A380, the completions giants are cautious. Airbus believes there is a market for 30 VIP versions of the superjumbo and is talking to most of the owners of the around 25 privately and government-owned current generation 747s, Airbus vice-president executive and private aviation Francois Chazelle said at the show.

However, the massive investment involved in equipment and capabilities to outfit its 551m2 (5,930ft2) interior, together with a long backlog of other large-aircraft completions, means none of the big players are rushing to take on the first VIP A380, to Saudi Arabia's Prince Al Waleed and due to come off the Airbus production line next year.

'We cannot accept the A380 any time before 2014,' says Walter Heerdt, senior vice-president of marketing and sales for the German company. 'There is 18-21 months of lead time before we could touch the airplane, and we have told Airbus this'."
"Everyone is entitled to my opinion." - Garfield
 
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Pellegrine
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RE: Private A380 Already Being Re-sold

Fri Feb 15, 2013 11:58 am

Quoting Devilfish (Reply 8):

It was reported that completion centers were wary of taking on the massive project.....

I think this was due to backlog only. Not any necessary wariness. They would be getting a check/wire transfer for at least US$100,000,000. For the interior only......
oh boy, here we go!!!
 
Bongodog1964
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RE: Private A380 Already Being Re-sold

Fri Feb 15, 2013 12:45 pm

Quoting Devilfish (Reply 8):
It was reported that completion centers were wary of taking on the massive project.....

http://www.flightglobal.com/news/art...0719/

This article is more than 2 years old, so its relevance is strictly limited.

The big question is what has he really sold. if its just a structually complete very early A380 with no interior its probably at a considerable discount to new price, if however it is sold complete with plans for the fit out, the work booked or under way and the materials ordered/paid for. it will be worth considerably more.

Does anyone know if the work has ever been commissioned or started ?

If it hasn't we might even be seeing the first A380 part out, considering that its a one off airframe, requiring wing strengthening, with the early wiring problems and any other issues that have cropped up in the past few years.
 
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Pellegrine
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RE: Private A380 Already Being Re-sold

Fri Feb 15, 2013 12:47 pm

Quoting bongodog1964 (Reply 10):

If it hasn't we might even be seeing the first A380 part out, considering that its a one off airframe, requiring wing strengthening, with the early wiring problems and any other issues that have cropped up in the past few years.

Airbus will keep it or try to sell it on. It is too early for parting out.
oh boy, here we go!!!
 
scouseflyer
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RE: Private A380 Already Being Re-sold

Fri Feb 15, 2013 1:02 pm

Quoting bongodog1964 (Reply 10):
If it hasn't we might even be seeing the first A380 part out, considering that its a one off airframe, requiring wing strengthening, with the early wiring problems and any other issues that have cropped up in the past few years.

It was refurbished about 18 months ago and expected to fly off to a fit out centre in 2012 and then sudenly it was taped up and engines removed again.

Quoting Devilfish (Reply 8):
However, the massive investment involved in equipment and capabilities to outfit its 551m2 (5,930ft2) interior, together with a long backlog of other large-aircraft completions, means none of the big players are rushing to take on the first VIP A380, to Saudi Arabia's Prince Al Waleed and due to come off the Airbus production line next year.

Eh it came of the production line in 2005?


There is a market for this - I would imagine that the costs are long ago written off so very discounted price could be possible - The rumoured order for "U Airlines" loco in Thailand perhaps?
 
starrion
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RE: Private A380 Already Being Re-sold

Fri Feb 15, 2013 6:47 pm

If AIrbus took it back, how difficult would it be for them to complete it to airline spec and put it in the current build stream?
Knowledge Replaces Fear
 
goosebayguy
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RE: Private A380 Already Being Re-sold

Fri Feb 15, 2013 7:54 pm

I wondered what had happened to this one. It seemed to vanish a few months ago.Makes me wonder if he has had a cash crunch? He owns about 5% of citibank and I think some of his investments have been hit over the last few years. Perhaps its Qatar which has bought it?
 
Gr8Circle
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RE: Private A380 Already Being Re-sold

Fri Feb 15, 2013 8:33 pm

Rich people like Al Waleed don't really "need" an A380......this was probably more of an egoistic purchase.....priorities change and he probably decided he doesn't want it anymore and would like to put the money to some other use instead....I guess, with a net worth of billions of dollars, he must be taking such decisions every other day.....
 
MadameConcorde
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RE: Private A380 Already Being Re-sold

Fri Feb 15, 2013 9:10 pm

I am surprised Roman Abramovich did not buy it from him.

Are there any other private clients who have placed orders for personal A380s?

Prince al Waleed has to build his mega-skyscraper Kingdom Tower in Saudi Arabia so maybe he needs every penny he can find for the tower's construction?

http://kingdomtowerskyscraper.com/

Location: Jeddah, Saudi Arabia
Architect: Adrian Smith +
Gordon Gill Architecture

Construction estimates:
- start date: January, 2012
- end date: 2017

- cost: $1.200.000.000 USD

Higher than Burj Khalifa!
I hope I will be able to travel to KSA to see it finished.

  
There was a better way to fly it was called Concorde
 
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Stitch
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RE: Private A380 Already Being Re-sold

Fri Feb 15, 2013 9:18 pm

Quoting MadameConcorde (Reply 16):
Are there any other private clients who have placed orders for personal A380s?

Not to my knowledge.
 
fcogafa
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RE: Private A380 Already Being Re-sold

Fri Feb 15, 2013 9:20 pm

There is also the problem of where to fly it. There is only a small number of major international airports that can handle the A380, so destinations are very restricted.
 
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Stitch
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RE: Private A380 Already Being Re-sold

Fri Feb 15, 2013 9:32 pm

Quoting fcogafa (Reply 18):
There is also the problem of where to fly it. There is only a small number of major international airports that can handle the A380, so destinations are very restricted.

I would expect A380CJ customers would be using remote parking areas (for security and privacy), so the number of fields that could handle it is probably larger than for commercial A380s that operate around other aircraft at gates and taxiways.
 
AF185
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RE: Private A380 Already Being Re-sold

Sat Feb 16, 2013 10:36 am

Quote:
Are there any other private clients who have placed orders for personal A380s?

If I'm not mistaking, Prince Alwaleed was the only customer for a private A380
 
calvo747
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RE: Private A380 Already Being Re-sold

Sun Feb 17, 2013 11:05 am

May be we all band together and make an offer....   
 
fcogafa
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RE: Private A380 Already Being Re-sold

Sun Feb 17, 2013 11:09 am

Quoting calvo747 (Reply 21):
I would expect A380CJ customers would be using remote parking areas (for security and privacy), so the number of fields that could handle it is probably larger than for commercial A380s that operate around other aircraft at gates and taxiways.

Agreed, but the availability of code F taxiways etc at 'other' airports is very limited
 
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N14AZ
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RE: Private A380 Already Being Re-sold

Mon Feb 18, 2013 11:21 am

It's just a feeling but I could imagine he sold his A 380 within Saudi Arabia. Some months ago one a.net member from KSA started a thread saying that Saudia has procured A 380s. Maybe not Saudia but this Saudia Royal Flight Department thing (sorry, forgot the exact name)?

But independently from the question of the ownership - the problems remains that there are no open outfitting slots.
 
B777LRF
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RE: Private A380 Already Being Re-sold

Mon Feb 18, 2013 11:46 am

Quoting PHX787 (Reply 6):
What's the status on this airplane reaching completion anyway? Wasn't there a recent thread or post showing the details on the aircraft (including a garage in the bottom level of the aircraft?)

Status is unchanged from what the article above says, and that's a couple of years ago. There are no completion centres who will undertake the effort of designing, constructing, installing and certifying an interior A380 conversion on the basis of 1 (one) order. Unless the sole owner is ready to bear the full costs, and even someone like Prince Al is unlikely to feel like parting with half a billion, particularly as he has rather large, hugely expensive and largely unnecessary, building project to attend to as well, the project is dead. The only thing that could have kept it alive was Airbus managing to secure those 30 orders needed for someone to take the plunge, but that hasn't happened yet and is unlike to do so within any reasonable timeframe.

As for Mr. Chelski being interested, I think even he - having just commissioned the largest yacht in history - might baulk a tad over the price. As we know, you could buy 2 or 3 very decent footy players for half a billion!

My guess is it's going into the fleet of an existing airline for a price we'll never be able to guess, but probably around a 100 (with wing mods and engines) plus refit. Basically, a free airframe. Have 'yer cake, Mr. Clarke  
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