Nimrod Capital Sees Future for A380-Leasing Despite Discontinuation

By Adam Clark

Nimrod Capital LLP is downplaying the effect on its aircraft-leasing funds of Airbus SE's (AIR.FR) decision to stop producing the A380 superjumbo jet.

Shares in four London-listed funds advised by Nimrod--Doric Nimrod Air One Ltd. (DNA.LN), Doric Nimrod Air Two Ltd. (DNA2.LN), Doric Nimrod Air Three Ltd. (DNA3.LN), and Amedeo Air Four Plus Ltd. (AA4.LN)--hit all-time lows following the announcement.

Airbus said Friday that it would end production of the A380 after 2021 due to a lack of demand, a day after the model's biggest buyer, Emirates Airline, cut back on its future orders for the aircraft.

The funds had invested heavily in the future of the A380, which form the entirety of the Doric Nimrod fleets and the majority of the Amedeo assets. The cessation of production will likely hit the residual value of the aircraft.

Nimrod issued a statement on behalf of all four funds, noting that there are still several years on their aircraft leases and all loan liabilities will be paid off at end of the rental period.

"We also note that other customers have expressed interest in second-hand A380s, and other airlines dealing with slot-constrained airports may well turn to the pool of A380s. With a finite number of A380s available, this could well prove supportive of the secondary market," Doric Asset Finance said. Doric acts as Nimrod's investment partner.

Write to Adam Clark at [e-mail]

(END) Dow Jones Newswires

February 14, 2019 12:46 ET (17:46 GMT)

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