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Old 13th Nov 2012, 16:18
  #10 (permalink)  
G&T ice n slice
 
Join Date: Oct 2007
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OK here goes, ignoring a whole bunch of variables, just looking at the "steady state" and using some slightly suspect numbers...

distance = 913Kms = 1 hour 787 = 1.06 hours AB

fuelburn/hour 787 = 9000, AB = 10000
so for 913kms burn 787 = 9000, AB =10,617

seat 787 = 219, AB = 250

assume fuelcost 2.05/us gallon = $0.308/lb (approx)

Delta fuelcost 787-AB = 1,617lbs = $498 (AB more)

Assume average saleable $250/pax then revenue 787 = $54750 AB = $62500 and Delta earnings = $7750 (AB more)

"incremental" is added $498 cost but $7252 (nett) revenue

ratio incremental revenue/fuelcost (hours basis 787 distance)
1 hour = 14.5
2 hours = 6.8
3 hours = 4.2
4 hours = 2.9
5 housr = 2.1

In other words on basis up to 3 hours (787 distnce) there is some advantage in terms of revenue potential to operating the AB. with average revenue $250/pax.

(scuse spelling etc, it's this dratted keyboard)

p.s. I'm an accountant
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