Premium #177 – The Logic of the A380 for High Traffic Markets

The A380 has been widely criticized by many industry analysts as too large, too expensive and too difficult to successfully operate for many airlines. However, when all costs are considered, the A380 offers compelling economic benefits for airlines that fly it into high density markets with multiple wide body flights per day.  This is the case made by Emirates’ CEO time and again, and he should know.

No market better illustrates this case than the New York JFK to London Heathrow market, which is dominated by four carriers and two trans-Atlantic code-share alliances with antitrust immunity. The oneworld alliance, with British Airways and American as key players, offer nine daily wide-body flights from JFK-LHR, as shown in the chart below.