IAG says its A380 options too expensive, looking to lease second hand
By Conor Humphries and Victoria Bryan
DUBLIN (Reuters) - British Airways owner IAG (ICAG.L: Quote) is holding talks on leasing additional A380s second hand because it believes the options it has to buy more of the Airbus superjumbo are too expensive, its chief executive said on Monday.
The move is part of a strategy of increasing the proportion of leased aircraft International Airlines Group (IAG) has within its fleet, Willie Walsh told the Airline Economics aircraft finance conference in Dublin.
"We have options on A380s ... but we are not going to exercise them because they are too expensive," he said.
"We see the option of leasing them second hand as an attractive opportunity."
Walsh said IAG was also interested in leasing or buying more second-hand Boeing (BA.N: Quote) 777-300ERs.
"We see going forward probably a greater mix of leased in the fleet than we’ve traditionally had," he said.
Leasing has traditionally been seen as an expensive option by large established carriers, which can often secure large discounts on new plane orders.
But airlines are increasingly looking to lessors to quickly add and subtract capacity at short notice to match market demand, experts told the conference. Continued...