Two of Airbus SE’s flagship A380 superjumbos are headed for the scrap heap after a search for new operators failed to secure firm bids.

Negotiations with British Airways, Iran Air and Hi Fly, a Portuguese charter specialist, ended without any deals, German investment fund Dr. Peters, which manages the planes, said in a statement to shareholders. The aircraft are already parked in the foothills of the French Pyrenees, where they will be filleted over the next two years by a specialist company and sold in parts.

It’s an inglorious end to the pair of double-deckers just a decade after they entered service, a fraction of the time commercial aircraft typically ply the globe. There’s no established second-hand market for the A380, making a sale to a new owner harder. Further complicating any transaction was the perceived lack of commitment from Airbus to the aircraft in recent years, said Anselm Gehling, chief executive officer of Dr. Peters.

“Given the size of the investment, some airlines weren’t sure about the future plans for the aircraft,” Gehling said in an interview. “That’s a factor that has complicated negotiations.”

SOURCE BLOOMBERG, Read more..