My Blog List

Friday, March 16, 2018

Perth To London Or Singapore To Osaka Japan

... Is a study with two different strategic projects for commercial airlines both predicated on the costs of airline fuel. The first goes 9,000 miles with 234 passengers on a 787-9 and the second carrier will go 3,00 miles with 330 passengers on a 787-10. The strategies use a combination of ticket prices and fuel efficiency for its respective bottom lines.

Boeing proposes a name your proposition with the 787-10 and Singapore Airlines proposes 49 787-10's for traversing Asia or Africa with one take-off from Singapore. If going far on a 787-9 with 234 passengers the ticket will go North of $2,000 per seat. If  going near-by with 330 seats on a 787-10 the ticket price may go South of $500. Multiply those seat prices at estimated ticket value times the seats and a revenue flight will look like these results. 234 Seats x's $2,200 = $234,000 and 330 seats x's $500 seats = $165,000.

The seat mile 787-9 revenue factor would look like this: 234/9,000= .106 and the seat/mile 787-10 revenue factor would be 330/3000 = .111. As you see both have a similar revenue factors but the 787-10 to Osaka burns significantly less fuel and will gain a larger profit potential with this strategy. 

Singapore Airlines has ordered 49 787-10's for its fleet. Draw a 5,000 mile circle around Singapore and see the high density city pairings found with its higher performing seat/mile machine.

Over half of Earth's population is within range of Singapore's' 787-10 fleet and that's a big number. This includes India, China and even into Africa. The 5,000 mile circle is immense and that is why Singapore bought the 787-10 in a large quantity. The 787-10 can fly another 1,500 miles than the 5,000 miles in this example. The world is watching to see what happens when Singapore launches its 787-10's, especially the middle eastern air force of Emirates, Qatar and Etihad. Why buy a 787-9 Singapore? when they could buy Boeing in ten years flying its 787-10's flying over half the world's people.

No comments:

Post a Comment