A380 lease rates

Commercial Aviation Online (CAO), the subscription-based news service owned by the company that owns Flight International, Airline Business and other publications, reports that Singapore Airlines completed financing of its third Airbus A380 with a lease structure in Europe. The purchase price by the lessors is reported to be $198.6 million with a lease rate of $1.7 million a month, for what’s know as a lease-rate factor of 0.85%.

Before people jump to conclusions about the purchase price, comparing it to today’s list price of more than $300 million for the A380, remember that Singapore ordered the A380 years ago and received launch customer pricing for it. (Business Week reported at the time that launch customer pricing was in the $140 million range, something neither Airbus or Singapore ever confirmed.)

The lease rate factor for an airline of Singapore’s quality is also fairly standard.

Disclosure: We write for CAO, but did not write this story.

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