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What is the future of the A380?

I think there is a 50% chance that A380 production will end by 2021, if not sooner, unless the Middle Eastern Airlines continue to reorder new ones that will replace A380’s that are scheduled to be intentionally retired from their airline service between 2022 and 2030. And that crystal ball is very unpredictable given the political tensions and difficulties that continue to plague the region.216 have been built as of December 2017 with approximately 100 more on ‘order’. At the current production run of approximately 1 a month, 24 to 30 more are very likely to be completed. Of the 13 airlines that operate the A380, none have publicly published their profitability has been with the aircraft. If production remains 1 per month, by 2021, Emirates Airlines will have fulfilled all its firm commitments that exist today with Airbus. But this is seriously in doubt with the airline delaying the delivery of 12 aircraft to beyond 2019. See more below. (addition; see article link at bottom for possible changes in production rates)The International Hub to Hub model only works on very popular high density routes that demand high passenger loads. Depending on the operator, those routes are not as in demand or popular as many predicted and thus limits their long term viability during poor economic times or where costs have increased.The other problem is revenue. On long haul flights, this class of aircraft does not financially compete compared to wide body twin engine aircraft relative to the capital and opex costs per flight when only 1.75 flights per day can be completed in a 24 hour period, despite improved turn around times that can prepare an arriving aircraft the size of an A380 to depart within 90 minutes.The operational costs to operate an A380 are beginning to unfold. This airplane is not an inexpensive one to fix or inspect. The airframe still goes through numerous inspections and are required to go through an extensive checklist that verifies no parts or components are fatigued or have signs of corrosion. There are thousands of parts that are not made of alloys but instead composites that still require extensive time to inspect and re-certify or replace. Most of the A380’s in service have had their wings modified during a maintenance cycle as per an Airbus update to replace components that were cracking. These overhaul cycles are also time consuming, taking just under three weeks to complete a major MRO inspection. That’s millions of dollars in lost revenues when an aircraft is out of service. Imagine having 148 of these in your fleet by 2021. As it is today, the A380 represents 102 of 248 aircraft currently in service at Emirate’s Airlines. Scheduling major overhauls that take an aircraft out of service for 3 weeks is a logistical nightmare.Emirates claims to have an 84.5% load factor average across its network, which is below the industries benchmark of 87 - 90%. That 15 to 16% loss of revenue potential on a 3 class cabin configured A380 is telling and likely a key reason all 2016 / 2017 models are being reconfigured with a higher economy / business class mix and older ones are being refit during overhaul.It is also telling that the airline has just over 100 B-777’s in operation today with 13 more coming and another 140 B-787 series on order, scheduled for delivery to begin in 2020/22. This is the business plan of many international airlines going forward. Two wide body aircraft for medium and long haul routes that can accommodate 250 to 375 passengers in a two / three class layout and either have an subsidiary or partner that operates a single model narrow body for its shorthaul feeder or secondary route network of less than 4,500 nautical miles.Engine maintenance, repair and overhauls (MRO’s) are frighteningly expensive in this class of aircraft. Initial maintenance services cost the airlines a combined 170M USD in 2015 and is estimated to skyrocket to more than 600M USD in by the end of this year and expected to rise to 2.1 billion by 2019 as the engines are then required to be completely torn down and overhauled. The reason the costs are so high is because there are a limited number of these engines in use (low production volume) and there are 4 engines per aircraft, doubling MRO costs. Some MRO facilities estimate this is 30% of the total aircraft overhaul cost. The numbers are steadily rising as more aircraft reach the same duty / flight cycles as they enter service and age.MRO’s checks are so complex that British Airways, which operates 12 A380’s doesn’t even carry out the major overhauls on its A380’s like it does for its B-747–400’s. They simply do not have the required hanger size and contracted Singapore Airlines instead. These costs are beginning to escalate to the point that operating them is becoming difficult given the limited amount of resources an airline has in today’s current economic environment.Converting these aircraft to freighters is going to be difficult and damned expensive. The main bulkheads and decks are not the same ones as the original Airbus A380F freighter that wound up being cancelled. In fact, it’s doubtful given the costs for an independent engineering firm would have to invest in developing a conversion and installation kit that any A380’s will be converted to freighters because the outsourcing of maintenance that would be required upon entering service would be astronomical compared to traditional B-747–400 / 8i models. There is talk of a combi (passenger / freighter) retrofit kit being designed by Airbus and would require fewer components to be replaced and reinforced. Combi models make sense on some high value routes between Africa and Europe which B-747–400 Combi’s now fly. I seriously doubt a Combi conversion kit will be announced or have buyers.Malaysia Airlines attempted to re-lease or sell outright its 6 A380’s with not a single airline interested. As a result, Malaysia plans to convert them into high density passenger configurations for charter / low cost use as they leave mainline service. Even so, there’s doubt the airline will be able to afford the conversion, fill the seats and make a profit.In the end, I think you will see new A380’s being built until at least 2021. They will build more if the Middle Eastern Airlines still think it makes sense compared to their A350 / B777 profit margins. If it doesn’t, say good bye to the A380 ahead of it’s scheduled production run (as of December 2017) of 317. Emirates, the single largest operator of A380’s has delayed taking a dozen new A380’s for two years for reasons many believe are financial and not landing slot restricted due to lack of space as they have announced. Emirates is the only airline with outstanding new deliveries that are firm commitments of more than 40 aircraft. The rest are highly suspect of becoming firm orders that enter into production. As it is, Airbus lost it shirt on one private sale VIP A380 that was built and never delivered. It’s scheduled to be placed in a museum without engines (that were never mounted).The A380’s currently on lease for Emirates and Singapore Airlines are on 12 year contracts which will be fully paid off and will not affect the leasing company’s bottom line. The aircraft, including engines will be resalable or available for a new lessor. The question is, will any airline want one. The market value of these airplanes are depreciating at higher than straight line evaluations and as a result, they will possibly be sold or leased at lower rates than originally estimated. Even so, the cost to operate and maintain one of these aircraft is absolutely enormous compared to looking at leasing a brand new B-777 / B-787 / A350. Evidence that this is the case is the number of used B-747–400’s now available for lease or outright sale exceeds 75 aircraft and not one has been leased or sold at bargain prices.Those that are still in service will be flown as long as the MRO cycle is deemed economical to do so and the manufacturer’s airframe cycle lifespan limits can be maximized. Some airlines that financed the purchase of the A380 will probably fly them until they are no longer serviceable - if oil prices do not skyrocket past 75 USD / bbl (Texas Sweet / Brent Oil). Oil as of December 2017, is hovering around 63 - 65 USD / bbl. If oil went back to sustained pricing between 85 - 95 USD / bbl or more, then I think the A380 would be parked in the desert in a hurry.Singapore Airlines has retired one A380 and Korean Airlines has plans to park all of theirs in the New Mexico desert by the beginning in the second half of 2018. The Singapore A380 is only 10 years old and left front line service before its lease was actually due to expire.The airliner has been the worst commercial investment made by an aircraft manufacturer in history. It that cost the company over 30 billion euros that will never be recovered by A380 sales. It’s still questionable if they are recovering costs to manufacture each one. Brexit alone could sink future production of the A380 if tariff are applied to the wings built in the UK by Airbus at the former BAE plant at Broughton.Ultimately the aircraft will be retired or sold for parts for those that remain flying. That date will probably not occur until the 2027 - 2030 time frame - if oil prices remain stable.Have a nice flight!Addendum December 27, 2017: Airbus ready to axe A380 if fails to win Emirates deal - sources?

If your US visa expires, and your California driving license along with it, are you able to get a temporary California driving license while your visa renewal application is pending?

I know a lot of people are or will be in this situation soon, because of delays in visa approval / renewal. My visa expires in July and so is my California driving license. My extension will be file soon, but there’s no way I’ll get the result before July.So I opted to go for AB 60.Follow - https://www.dmv.ca.gov/portal/dmv/detail/ab60Follow the questionnaire on - AB 60 Checklistand try to gather as many documents as you can.I took my 194 copy, My travel history copy, Utilities and water bill, car registration, insurance copy, Passport(Old and New), Lease agreement and W2.I went to the DMV and got my number. My number is displayed on the screen and as I am walking towards the window♫♫♫♫♫“his palms are sweaty, knees weak, arms are heavy There's vomit on his sweater already: Mom's spaghettiHe's nervous, but on the surface he looks calm and ready” - Eminem♪♪♪♪♪♪♪So, I gave my documents to the lady. She informed me that my Visa and DL will be expiring soon. I asked her to file it under AB 60. She was okay with it, but wanted to make sure that I know that the application will go to Sacramento for review and might take some time before I get a decision.Having no other option, with my sad face I said “okay please go ahead and file it”. She asked for one address proof and my DL. I gave my utilities bill as address proof.Then she took out her AB 60 checklist and started reading it (I’m still SAD).She got up and went to talk to someone. Came back and said the golden words( Since, you have all valid documents and verified SSN. We do not have to send your case for review and can decide it right here right now) (YAY happy)She printed a temporary paper license and told me that I’ll be getting the licence in the mail soon (which will be valid for 5 years but should be replaced with the normal one as soon as you get the visa approval)Now I’ll be able to drive to work after July (NO UBER YAY) ..Also, while it was wrapping up, I almost shed a tear of joy …. AT THE DMV!!Hope it helps, Goodluck.

Is real estate a viable option to accumulate wealth?

1. Ask yourself a lot of questionsThe first step in purchasing commercial real estate is knowing what you want! It is imperative that you enter the process knowing yourself, your situation, and what you’re looking for.A few questions that you should ask yourself before you begin your search are:What kind of location do you need?What kind of property are you looking for?Do you need to buy or could you lease the property?What’s your situation regarding cash, financing, and/or ability to make a down payment?How much time can you commit to the property?How much work are you willing to put into the property?2. Learn some commercial real estate vocabularyA lot of acronyms and vocabulary exist in commercial real estate that most people are unfamiliar with. Knowing any of these terms will make working with people in the commercial real estate industry much easier.Here are some common terms to get started with:Loan-To-Value (LTV): A ratio of how much money you’re asking from a lender vs. the total value of what you want to purchase.Cash on Cash: Annual income over how much you actually invested. The amount invested could be just the amount your down payment was.Capitalization Rate (Cap Rate): Income of the property divided by the total value of the property.Ad Valorem: A tax based on the assessed value of a piece of property.These are just some of the terms to be familiar with — City Feet has a great glossary of more commercial real estate vocabulary.3. Visit and consider many properties.Do your homework on each! Tour as many different properties as possible. Commercial deals take longer than houses do. They take longer to purchase, renovate, and get sold, so take your time during your search! Don’t rush anything.Figure out what works and what doesn’t about each of them for you. Consider the most important things for each one including price, location, condition, and allowed uses.The importance of location can’t be emphasized enough. Properties located near universities, hospitals, or downtown areas will generally have a higher value and will sell quickly.Above all, you’re searching for a “match” with your property. Your situation and needs are unique. Here is an extensive checklist of helpful questions to ask while touring properties.4. Find the experts.Buying commercial real estate can be a very complex process. It will be helpful and beneficial for you to hire experts to help you work through some of the steps. What kind of experts and how many depends largely on the type of property that you’re purchasing. At the very least, you’ll need to hire an accountant, to discuss the financial aspects and options of buying commercial real estate. A commercial real estate lawyer, to help you draw up any contracts pertaining to buying or leasing a property. A commercial realtor, who will alert you to viable properties in the area. And lastly, a mortgage broker, who will work with you to obtain the necessary funding for your real estate investment.Some properties can be more complicated and may require other specialists like tax experts, notaries, appraisers, engineers, and/or environmental specialists.5. Figure out your financingIf you’re like most people, you’ll need to get some financing help to be able to purchase the property. What type of banks, credit unions or other home mortgage company could you use? What kind of credit do you have and what kind of interest rate could they give you? Answering those questions will put you on the right track for the financing process.

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