Tuesday, May 1, 2018

Could Rising Jet A Price Begin A...

... An onslaught of new widebody orders? Low fuel prices became the premise for large older generation airframes for the industry back five years ago thus suffocating buying large wide-bodied aircraft like the 787. Using an opposite rationale could start a surge for new general widebody orders, specifically the 787 families of aircraft in 2019.

The old thought said buy, lease or borrow low priced inefficient aircraft because fuel cost became so low. Now that fuel is rising, a pent-up demand for the 787 could explode on the market scene by 2019 because of airline profit need. Fuel prices are going higher therefore, it is required to own efficient aircraft like the Max or Dreamliner?

Boeing has already considered this market paradigm and it has many orders options on hand just from fuel efficiency demanded with operations from fuel prices climbing.