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STRATEGY
Plans for high-density variant and reduced engine costs may not convince market
Airbus, Rolls-Royce and CFM International spent a day in London in early December seeking to convince the market that the A340 represents a good investment, despite its operating economics being buffeted by high fuel prices.
The event was kicked off by Airbus's top salesman John Leahy and attended by over 100 delegates, including financiers, lessors, appraisers and brokers.
Production of the four-engined widebody ended in 2012 after 377 deliveries, including 246 CFM56-powered A340-200/300S and 131 Rolls-Royce Tient 500-powered -500/600S. In all, 358 aircraft remain in operation, according to Flightglobal's Ascend Online Fleets database.
Much of the focus was on the largest model, the A340-600, of which there are 97 in existence.
The fundamental problem Airbus and owners face with the A340-600 is highlighted by its value performance, compared with the 777-300ER.
Rob Morris, head of advisory at FUghtglobal's consultancy arm Ascend, says that a 10-year-old A340-600 has a current market value of $40.5 million - 36% of its $112 million original new value. However, a 777-300ER of a similar age is worth $83.5 million - 73% of the $114.6 million value when new. "On the 'standard' 25-year-to-15% depreciation policy typically used by operating lessors, a 10-yeax-old aircraft should be at 66%...