Saturday, March 11, 2006
Airbus A380: Will There Be One That Actually Seats 900?
There are rumors that some airline is preparing to cram 900 seats into the Airbus A380. But this seems to be contradicted by the fact that the A380 is only being currently tested with 876. What this means is that approvals will only be granted for that number and nothing more.
It is interesting how everybody is talking about airlines providing extra room and cocktail lounges in this giant bird. More so because of large orders for the A380 from airlines like Emirates who are really not an economy airline.
All this totally ignores the reality of economics. The airline industry is not doing particularly well at the moment and apart from the effects of 9/11, the truth is that many airlines would sell a lot more seats at lower prices. Imagine what would happen to their bottom line if they can do this at a profit.
Then there is the totally ignored fact that the World Wide Web has helped to dramatically fuel an increase demand for world travel. One of the huge remaining obstacles is the cost. One just needs to take a look at what is happening in India (incidentally a very "wired" nation) where air travel has just gone through the roof, totally ignoring obstacles like the after effects of 9/11.
There is no doubt on the mind of this writer that the A380 will mark a dramatic change in world air travel by drastically bringing down the unit cost of air travel and thus tapping into a huge growing and probably insatiable demand, in years to come. We are knocking on the door of super-economy air travel.
In other words Airbus was right and Boeing was wrong. If this proves to be true, it could be an extremely expensive mistake for a company that virtually invented commercial airline manufacturing.
It is interesting how everybody is talking about airlines providing extra room and cocktail lounges in this giant bird. More so because of large orders for the A380 from airlines like Emirates who are really not an economy airline.
All this totally ignores the reality of economics. The airline industry is not doing particularly well at the moment and apart from the effects of 9/11, the truth is that many airlines would sell a lot more seats at lower prices. Imagine what would happen to their bottom line if they can do this at a profit.
Then there is the totally ignored fact that the World Wide Web has helped to dramatically fuel an increase demand for world travel. One of the huge remaining obstacles is the cost. One just needs to take a look at what is happening in India (incidentally a very "wired" nation) where air travel has just gone through the roof, totally ignoring obstacles like the after effects of 9/11.
There is no doubt on the mind of this writer that the A380 will mark a dramatic change in world air travel by drastically bringing down the unit cost of air travel and thus tapping into a huge growing and probably insatiable demand, in years to come. We are knocking on the door of super-economy air travel.
In other words Airbus was right and Boeing was wrong. If this proves to be true, it could be an extremely expensive mistake for a company that virtually invented commercial airline manufacturing.
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I agree with you 1000%.
I was not talking about domestic flights within the US. This market has many other key factors affecting it like the avilability of alternative and sometimes cheaper modes of transport. I was specifically talking about international air travel along busy routes and major cities in the various continents.
In fact with the rise of the A380 I believe that there will also be a huge growth in the market for connection flights that will feed off the increased volumes of passengers. It will be interesting to see whether this will mean increased demand for small aircrafts or larger ones.
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I was not talking about domestic flights within the US. This market has many other key factors affecting it like the avilability of alternative and sometimes cheaper modes of transport. I was specifically talking about international air travel along busy routes and major cities in the various continents.
In fact with the rise of the A380 I believe that there will also be a huge growth in the market for connection flights that will feed off the increased volumes of passengers. It will be interesting to see whether this will mean increased demand for small aircrafts or larger ones.
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