Re: A3XX - to launch, or not to launch

Date:         03 Nov 98 02:05:55 
From:         Joseph Edward Nemec <its@in.the.sig.edu>
Organization: Massachusetts Institute of Technology
References:   1 2
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Gilles Armstrong wrote:
>     Although your maths are no doubt right, there are a few other points you
> do not mention: part of the point of the A3XX is to be able to offer a full
> family of aircraft, so as to offer complete "solutions" to airlines, thus
> saving on retraining etc... The extra aircraft sold will reduce the strict
> amount of A3XX to be sold to break even (significant knock-on effect).
> People like BA buy aircraft with families in mind, and it would be
> surprising if their recent purchase had nothing to do with a future
> acquisition of A3XXs.

No doubt what you say is correct. However, Airbus' desire to offera full
family of aircraft does not offset the fact that there does not seem to
be anyway to make money on it. Airlines will not buy aircraft that they
do not need, no matter how technically impressive they may be. The goal
of an airline is to make money, and they do that by filling enough seats
on a flight to recoup the cost of the flight. If they fly airplanes
half-empty, they do not make money on them.

--
Joseph Edward Nemec
nemecj@mit.edu
http://web.mit.edu/nemecj/www/