Lessor Amedeo, formerly known as Doric Lease, has firmed up its previously announced commitment for 20 Airbus A380s.
Deliveries will start in 2016 and continue through to 2020. An engine selection will be made at a later date.
I like the phrasing of the second paragraph. I can just visualise 20 A380's stting on the tarmac at Toulouse in 2020 while Airbus wait to be told which engines to install.
|Quoting Nav20 (Reply 227):|
If, at the end of the 12-year lease, the aeroplane is on-sold, the investors will be entitled to a share of the sale proceeds. But if it cannot be on-sold, they will only be entitled to a share of the scrap value. Which is likely to be a lot less than the amounts they invested in the first place?
As I understand the Amedeo modus operandi
- a commercial loan is arranged to cover a proportion of the cost of the asset
- investors provide the rest
- the commercial loan is repaid within the term of the lease
- the investors own an unencumbered asset at the end of the lease
If at the end of the lease the asset is sold for a price equal to the investors' original investment, they have received 8% per annum with no capital gain or loss. Their investment, however, depends on how much of the asset cost was covered by the commercial loan.
At the end of the first lease the asset could be
- sold for parts
- sold for continuing operation
As I understand the maintenance methodology with the A380 the aircraft is not subject to very expensive D checks. I would think that it would therefore retain relatively more value than would otherwise be the case.
It is a little ironic that after years of people querying the possibility of filling the A380 airlines appear interested in increasing seating capacity. I note that this is how Amedeo proposes to configure its A380's.
So I guess that there will be takers for ex-Amedeo A380's / takers for second leases in the 2020's