Fri "The Australian"
Carriers spoilt for choice
Geoffrey Thomas
April 01, 2005
BACK in the late 1990s, the airline industry reckoned it could make do with just a handful of different types of planes, claiming that capital savings of 20 per cent could be achieved by drastically shrinking the multitude of options offered to, and at the time demanded by, airlines.
Five years on, with aircraft costs and airline yields moving in opposite directions, the need for standardisation and simplification has never been greater – but progress is painfully slow.
So far, what has been achieved has been driven more by manufacturers eager to drive costs and complexity out of the production process, rather than by airlines intent on cutting the purchase price.
One of the most challenging problems for aircraft builders is how to sell commonality when airlines are fighting a pitched battle for survival around product differentiation in the smallest items.
Even in areas where options can offer little commercial advantage, airlines are loath to cut back and manufacturers are reluctant to force the issue.
But the financial stakes for the manufacturers are enormous.
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