PPRuNe Forums - View Single Post - Boeing Mulls Stretching 777 to Knock Out Airbus A380
Old 11th Jul 2016, 13:37
  #39 (permalink)  
Enos
 
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The survival of the 380 is not about passengers liking it, its about accountants buying it.


4 engine aircraft make money when they are full. Empty and they cost a fortune.


2 engine aircraft don't make as much money full but don't cost as much to run empty.


380 is good for slot constricted airports, that's why only a hand full of airlines have bought it, it doesn't carry much freight, not just that it doesn't have the space below, it can also be trim problem. Airfreight can be 25% of an airlines profit, accountants won't turn their back on that when they are struggling to make a profit.


Then it comes to 24hr utilization fly it 8-10 hours (9 -10 hrs is the aircrafts sweet spot) turn it around for 2 hrs and it fly it home again and your using it, if the sector is not that long or longer then you've got to find somewhere else to fly it to or look at it costing money on a parking stand, then you're into the Intentional Miss Use Of Wide Body Airliners, most airlines with wide body aircraft do this. Dump 450 seats onto a 3hrs sector on a Tuesday afternoon in winter you are not going to make money, park it you're losing money!


Compromise and don't buy such a big aircraft, make money on the good days of the week and don't lose large amounts on the bad days.


EK do OK with the 380, they move a huge number of people due Dubai's geographical location, they are slot constrained at Dubai and to a hand full of their key destinations like LHR LGW SYD BNE and they can use the aircraft at a profit when its not going to slot constricted airports due to nature of their network.


Most other big airlines like BA AF LH don't have the vast network that EK has hence the limited number of 380s they have.


The 380 is dead in the water if it wasn't for EK it would be dead now, no manufacturer can run a production line without orders.


There could be another 60 380s roll off the production line and that will be it, there are no other airlines who would buy it, may be airbus will pull the pin sooner.
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