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Aircraft fleet planning – a new perspective

Maximising value and competitive advantage from complex aircraft fleet decisions


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Background

Fleet choices are among the most significant decisions an airline has to make. Large scale changes to the aircraft fleet, including potentially determining new principal aircraft and engine platforms, will touch nearly every aspect of the business, from day to day flight operations and customer satisfaction through to financial performance and shareholder return.

Growth in forecast demand coupled with the introduction of a wider range of new aircraft frame and engine choices makes the decision highly complex. At the same time, margin compression and competitive pressures increases the risk as well as the value at stake.

Comprehensive analysis of the key issues, complexities and uncertainties as well as the risk-return trade-off of alternative options should be considered so as to assess the impact on the company’s financial performance as well as operational effectiveness.

Key findings

The report identifies 10 critical issues facing airlines from a fleeting perspective - these include demand growth, cost, margin and competition. However, the report also identifies the value opportunity from new technologies and a practical route map which enables airlines to:

  • Incorporate the uncertainty and evaluate optionalties;
  • Understand the inherent risk-return trade-offs;
  • Align the decisions with the agreed strategic direction and risk appetite.

 

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