Given the precipitous drop in oil prices, the value of new-technology aircraft has been questioned, but is this warranted? New-technology aircraft create revenue opportunities and reduce operating costs, enabling airlines to build competitive moats that support sustainable business models. Airlines with less fortunate geography will now be able to improve their economic geography by operating single-aisle aircraft routes not previously possible. Not all airlines value fuel efficiency the same. The trade between increased ownership cost and fuel savings is dependent on utilization.
To better understand which types of airlines value new-technology, we analyzed the forecasted share of single-aisle deliveries from 2016 to 2019. New-technology aircraft account for two-thirds of high-growth, high-utilization airlines’ deliveries, demonstrating that the business case for these types closes at any fuel price if the operator flies enough.
This is a recorded webinar hosted by CIT Commercial Air.
Тэги:
#Single-Aisle #Aircraft #Commercial_Air #CIT_Group #Aerospace