We published a premium story today on the timing of the A380′s launch. The timing of the A380 launch was driven by many factors and certainly one of the principal factors was competing with Boeing’s 747 and its monopoly of the VLA segment of its era.
Providing perspective of how Airbus had to view its decision at the time, we spoke with Professor Tobias Kretschmer, an expert on strategy and game theory from Ludwig-Maximilians-Universität München. Professor Kretschmer uses the A380 vs 747 in his game theory lectures and is familiar with the key decision Airbus faced at the time the A380 was launched.
Bloomberg reports that Malaysian Airlines is likely to see some big changes. A possible new CEO, layoffs and an aircraft order review are the identified changes.
The current CEO has a contract that expires in the next few weeks. It is doubtful that he would want to renew it given the past year. Who could blame him? It may have been the most awful year any airline CEO ever had to go through.
The layoffs could be big – 3,000 to 4,000 according to the Bloomberg story. There are some 20,000 employees at the airline, and laying off a fifth will be be a severe blow. Once the state effectively takes the company private, the unions will have a tough time overcoming any layoffs.
What about fleet rationalization and orders? The table below lists the fleet and orders. Airbus is not exposed… Continue reading
Boeing announced an order from BOC Aviation for 50 737 MAX 8s, 30 737-800NGs and two 777-300ERs. The order is valued at $8.8bn at list prices. This is the largest in BOC Aviation’s 20-year history.
“Following the successful placement of the 50 Next Generation 737 aircraft that we ordered in 2006, this is a continuation of our commitment to be responsive to airline customers which are expanding or replacing older fleets,” said Robert Martin, managing director and chief executive officer, BOC Aviation. “The 737 is known for its operational and fuel efficiency, and BOC Aviation expects healthy demand for the Next Generation 737 and 737 MAX variants in the next seven years.”
The order adds to BOC Aviation’s fleet, which is among the youngest in the leasing industry with an average of less than four years.
The order is interesting as it shows the 8MAX and -800NG remain… Continue reading
This is the traditional image people have of tobacco. It is a product that gets little love in western countries. Indeed it is taxed as heavily as possible because so much of the healthcare system is devoted to repair damage from people consuming tobacco products.
So it is with joy for the tobacco industry that two pieces of exceptional news emerged this week. First came the news that one can battle Ebola disease using tobacco related medication. Although experimental, the fact the treatment was used and seems to be working should give tobacco companies a boost.
Of course we hope the Ebola breakout does not go any further and require more treatments. A much better story came out just after 4am this morning from Boeing.
“Boeing, South African Airways (SAA) and SkyNRG announced today they are collaborating to make sustainable aviation biofuel from a new… Continue reading