Emirates Places $200 Million Order for 5 Airbus A380s

Emirates has agreed to purchase five Airbus A380 aircraft from Doric Nimrod Air Two (DNA2) for just over $200 million. The announcement was made Wednesday morning on the London Stock Exchange.

A Dubai Spending Spree

DNA2 has agreed to sell five Airbus A380 aircraft to Emirates for $40.69 million each, with a total of $200.3 million. All five planes are currently leased to Emirates, and the Dubai-based airline will be cleared to own them 100% when the final lease period concludes on November 30, 2024.

With prolonged delays in new aircraft deliveries, Emirates has locked in ownership of these large planes not only to expand its fleet, but to ensure the availability of flights that can meet the needs of hundreds of people at a time. Emirates currently has over 115 superjumbos in its fleet.

Before this acquisition, Emirates had been purchasing other Airbus A380s from lessors, adding to a stockpile of high-capacity planes that what the airline considers a bargain. Just before Christmas 2022, the airline purchased another Airbus A380 from Doric Nimrod Air One to the tune of $30.5 million.

Chairman and CEO of Emirates Sheikh Ahmed bin Saeed Al Maktoum expressed plans to acquire A380s on November 2023 during the Dubai Air Show:

“The A380 will stay with us until at least 2035. We will continue to buy it for the right price.”

This comes off the heels of Emirates signing a $1.5 billion deal towards the maintenance of Airbus A380s under its ownership. (https://gulfnews.com/business/aviation/emirates-signs-agreements-worth-over-15-billion-for-a380-fleet-maintenance-1.99405193)

DNA2 will sell its remaining aircraft as the company prepares for liquidation. According to the London Stock Exchange, the five Airbus A380s are the company's "remaining five assets" (https://www.londonstockexchange.com/news-article/DNA2/sale-of-remaining-five-assets/16627872). DNA2 first ordered the aircraft from Airbus, which they have leased to other airlines since late 2012.

Why The Airbus A380 Is Must-Own

The Airbus A380 was first assembled in 2007, in which it was the world's largest passenger jet at the time. This double-decker bus has a standard seating arrangement for 525 passengers, but can hold up to 853 with modifications.

The Airbus A380 was discontinued in 2021. 251 of these planes were built in its lifetime, with Emirates owning nearly half of them today.

During the COVID-19 pandemic, there were major restrictions for locations and events with large gatherings, which heavily effected the short-term future of the Airbus A380. Most airlines took the plane out of commission until life returned to normal again in the years that followed.

Despite Airbus A380s being brought back into the fold, they have since depreciated in value due to their age and the growing interest in airlines wanting to move towards newer aircrafts that were more fuel-efficient and cost less to maintain. (https://www.cntraveler.com/story/airbus-a380-plane-is-making-a-comeback)

Al Maktoum certainly sees a strategy in acquiring used Airbus A380s for cheap while other airlines wait longer to spend bigger on newer superjumbos. With Emirates flying to and from 85 different countries, the airline can certainly gain a competitive advantage for when major global events take place such as the FIFA World Cup.

But what are your thoughts? Have you flown on an Airbus A380 before? Feel free to leave us a comment down below!