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Flying the A-380 The Case for Bigger Aircraft

Flying the A-380 The Case for Bigger Aircraft. MIT meets Lufthansa 2003. Agenda. The Challenge Key Issues and Concerns A-380 Technical Requirements and Operating Procedures Consequences Summary. The Challenge.

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Flying the A-380 The Case for Bigger Aircraft

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  1. Flying the A-380The Case for Bigger Aircraft MIT meets Lufthansa 2003

  2. Agenda • The Challenge • Key Issues and Concerns • A-380 Technical Requirements and Operating Procedures • Consequences • Summary MIT meets Lufthansa, 2003

  3. The Challenge What consequences will Entry-Into-Service of the A380 have for an airline in terms of net management? MIT meets Lufthansa, 2003

  4. Facts Airbus A380 Boeing 747-400 • Length: 72.2m • Wing span: 79.8m • Height: 24.1m • Weight: 560000 kg • Passengers: 555 • Length: 70.7m • Wing span: 64.4m • Height: 19.4m • Weight: 396000 kg • Passengers: 390 MIT meets Lufthansa, 2003

  5. Contingency Planning Delays Security Rerouting Evacuation Flight Scenario • Departure: • Check In • Gates • Aircraft Servicing Flight: -Seats -Distance -Cabin -Crew Requirements Arrival: -Airside Capacity -Alternatives Planning Maint. MIT meets Lufthansa, 2003

  6. Network Planning Challenges & Opportunities • Production constraints • Limited airport infrastructure (primary & alternate) • Fleet size / aircraft rotation • Exchangeability of fleet • Maintenance facilities • Market Constraints • Limited routes (frequency & high demand) • Competition in a limited market MIT meets Lufthansa, 2003

  7. Network Planning Challenges & Opportunities • Strategic Considerations • Slot efficiency • Improve airline image (launch customer) • Create a unique flying experience • Market development • Cost efficiency – reduce cost per seat MIT meets Lufthansa, 2003

  8. Network Structure Options • Point-to-point • Network-to-Network (around the world) • Hub-and-spoke • Charter / non-network flying MIT meets Lufthansa, 2003

  9. Network Structure Options • Point-to-point • Network-to-Network (around the world) • Hub-and-spoke • Charter / non-network flying MIT meets Lufthansa, 2003

  10. Network-to-Network • “Alliance Airline” • Service provider – supports alliance partners • Airlines are customers • Link between several airline networks • Route structure • Worldwide backbone connecting hubs • Regional networks feed A380 service • Global rotation MIT meets Lufthansa, 2003

  11. Pros • One worldwide Traffic Control Center • Higher utilization • Opportunity for minimum maintenance facilities • Use of existing service points (i.e. check-in) • Faster learning curve with A380 due to specialized organization and dedicated staff • Risk sharing • Stronger position – enhanced influence (clout) MIT meets Lufthansa, 2003

  12. Cons • Traffic rights / government interferences • Labor issues • Separation of image - corporate image identity • Different service networks / Cultural issues • Need long-term commitments / contracts • Dependence on alliance airlines • Each alliance member must adapt their existing network to eliminate redundancy • Inflexible network – reconstruction problems • Allocation of costs and revenue MIT meets Lufthansa, 2003

  13. Conclusion • A380 brings a new dimension in terms of size, technology, infrastructure demands • Market opportunities are limited • One airline may have difficulty operating the A380 efficiently alone • Alliance integration creates opportunities and reduces risk MIT meets Lufthansa, 2003

  14. Thanks for your attention ! MIT meets Lufthansa, 2003

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