Fleet Replacement Analysis

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Written Assignment Fleet Replacement Analysis Statement Aircraft Replacement strategy involves decisions on when and how many aircraft of different fleet (aircraft type) to purchase, lease and dispose of within an airline’s planning horizon. When it comes to purchasing, there may be a number of vehicles that meet a fleet’s functional requirements, but which have different capital costs, fuel efficiency and environmental performance. A key part of the solution is lifecycle analysis. This is a way to compare the capital and operating costs of a vehicle, along with its environmental impact, for the whole of its life. The analysis also provides optimal timing for replacement, based on anticipated use. Memorandum The two most successful commercial jet aircraft in history, Boeing’s B737 family and Airbus’ A320 family are not only the lynchpins of each manufacturer’s commercial performance, but the backbone of the commercial aviation industry. Between them, the two aircraft families account for more than 10,000 aircraft built over the past 40 years, with more than half of those manufactured in the last decade. The two families of medium-range, narrow body aircraft can accommodate anywhere from 110 passengers in low density configurations to 220 passengers in high density, single-class layout. Both are currently produced in four variants (A318/A319/A320/A321 from Airbus and B737-600/700/800/900ER from Boeing). Production backlogs for both types stretch back more than five years. With the A320 family in its third decade of service and the B737 Next Generation entering its second (with the original B737 debuting in 1968), pressure is mounting on Airbus and Boeing to offer all-new replacement aircraft or enhanced versions with next generation engines. Direct threats to the dominance of the two aircraft in the narrow body market have emerged over the past five years,

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