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Old 1st Aug 2019, 17:01
  #61 (permalink)  
Kamelchaser
 
Join Date: Oct 2004
Location: Dubai
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"back on track in 2-3 years"? Not likely. Until EK can reduce its 380 fleet to a size that can at least break even, and until newer aircraft can make routes profitable again, EK is in dire straights. Don't expect to see real profit again for nearly a decade until the 380 fleet gets back to something like 40 aircraft.

The only reason EK has kept its head above water for the past few years is because they've made huge amounts of money from buying big fleets of aircraft at bargain basement prices, and on-selling individual airframes to leasing companies for a hefty profit...my estimate..around a billion dollars a year from on selling airframes to leasing companies. That gig is all but finished, at least for the 380, given the lack of any residual value for that aircraft at the end of a lease. Who wants a second hand A380? Without the subsidies provided by that scheme, the 380 has to stand on its own. Hence one of the main reasons for EK's massive drop in profits over the past year or two.
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