Singapore Air won’t extend lease on Airbus A380 jet in 2017

Singapore Airlines said it won’t extend the lease on its first A380 superjumbo jet, a move that is set to test second-hand demand for the world’s biggest commercial aircraft. The carrier, the first operator of the Airbus Group plane, will see the contract expire in October 2017 and doesn’t plan to exercise an option to extend it, Singapore Air said Wednesday. The airline’s first five A380s are on 10-year leases, and a decision on the other four planes will be made later, it said. Airbus has said demand for A380s has fallen far short of its original projections, forcing the company to drastically cut output earlier this year. The jet-maker has said it sees a second-hand market for the plane as major carriers including Emirates and Singapore Air come to the end of their initial lease terms, potentially offering low-cost Asian airlines an option of flying more people on six- to eight-hour routes.<br/>