SYDNEY – Dr. Peters Group has given up hope that it can sell two former Singapore Airlines Airbus A380s and decided that they should be parted out.
The company is proposing to investors of two of its funds that own the aircraft that they should be dismantled for spares. That process is to generate around $45 million in funds for them. The engines are to be sold by the end of 2020 Dr. Peters said in a statement that it has held “comprehensive and intensive negotiations” with several airlines including British Airways, Hi Fly and Iran Air for new leasing contracts were unsuccessful. It also considered selling the aircraft, but came to the conclusion that possible deals were financially unattractive to investors.
Dr. Peters has been facing strong criticism by small investors who claim they have been misled about the market prospects of the A380.
The two aircraft are owned by two separate funds. A third fund owns two additional former SIA-A380s. A decision about their future has not yet been made. A Dr. Peters official stated negotiations were continuing for the two aircraft.
The decision to part out the first two aircraft is still subject to investor approval which Dr. Peters aims to receive by the end of this month.
So far, only one of the five former Singapore A380s has found a new home: Portuguese wet-lease specialist Hi Fly has decided to take one aircraft that is to arrive this month.