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DWF comments on decision to cease production of A380

19 February 2019
Tax and Private Capital
Comment by Martin Pugsley, aviation finance expert and head of DWF's financial services practice.

Martin Pugsley, aviation finance expert and head of DWF's financial services practice, said: “The A380’s target market was always the biggest airlines – those which dominate the transcontinental routes between the world’s major aviation hubs.

“For numerous reasons – namely the preference for smaller, more efficient jets – these customers have rejected the superjumbo model. But the real growth markets for the aviation sector are in the developing world. We are seeing ambitious airlines emerge , particularly in Africa and South America, and these players are concentrating on regional networks which they can scale up quickly and service with a large fleet. The onus in these growth markets will be on low-cost, single-aisle planes.”  

 

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