aerohottie
Posts: 702
Joined: Mon Mar 29, 2004 3:52 pm

737/320 Profitability Differences

Mon Apr 05, 2004 3:26 pm

Can somebody please explain to me how the 737 can be the cheapest option (operationally speaking) for some carriers, and the A320 for others. There must simply be a cheaper aircraft to operate, or is this not the case??? I've asked several of my friends, and they arent any help. Although after reading as many messages relating to this question on here I have 2 theories.

1# The A320 family is cheaper to purchase making any possible operational costs reduce over time.....

2# The 737 is more suitable for operaters that already fly the older models due to crew training, maintenance etc etc.

Also the A320's appear to be favoured by airlines needing more cargo capacity, why?

Cheers
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JBirdAV8r
Posts: 3454
Joined: Sun Jun 24, 2001 4:44 am

RE: 737/320 Profitability Differences

Mon Apr 05, 2004 3:29 pm

I thought you were an airline analyst?  Confused
I got my head checked--by a jumbo jet
 
aerohottie
Posts: 702
Joined: Mon Mar 29, 2004 3:52 pm

RE: 737/320 Profitability Differences

Mon Apr 05, 2004 3:34 pm

No I'm not... I'm an airline nut though???
I have friends who are revenue and network analysts???
I am studying a Bachelor of Aviation Management at Massey University, but we havent gone into much detail on this topic as yet.
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777ER
Crew
Posts: 9853
Joined: Fri Dec 19, 2003 5:04 pm

RE: 737/320 Profitability Differences

Mon Apr 05, 2004 3:41 pm

I thought you were an airline analyst?
Thats exactly what I throught.

Also the A320's appear to be favoured by airlines needing more cargo capacity, why? Well...... the A320's fuslage is wider then the B737's fuslage. The A320 can carry Cargo sized containers while the B737 can't. This is why many airlines prefer the A320 family over the B737's.

2# The 737 is more suitable for operaters that already fly the older models due to crew training, maintenance etc etc. Also because some airlines that already fly the B737's know that they are a reliably aircraft and they don't want to change to the A320 family because they don't know how reliable and good those planes are.


 
aerohottie
Posts: 702
Joined: Mon Mar 29, 2004 3:52 pm

RE: 737/320 Profitability Differences

Mon Apr 05, 2004 3:46 pm

Thanks guys... but take this scenario for example.

An A320 and 737 fly SYD-MEL... which would be the cheapest in regards to flight costs, and why???
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LAXintl
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

RE: 737/320 Profitability Differences

Mon Apr 05, 2004 4:30 pm

When you say which is cheaper, its somewhat hard to compare as you are not really comparing apples and apples.

Some variables why one type might be cheaper for one airline and not the other can include the following.

Initial purchase price or monthly lease
Crew Cost
Insurance
Airframe and Engine Maint cost
Ground handling cost at various airports
Landing fees based on different take off/landing weight combinations.

An in-depth analysis is carried out prior to the selection of aircraft taking into account the unique operational needs and structure of the particular airline involved.

From the desert to the sea, to all of Southern California
 
Caymanair
Posts: 433
Joined: Mon Apr 05, 2004 4:53 am

RE: 737/320 Profitability Differences

Tue Apr 06, 2004 12:44 am

it also depends on the type of operation the aircraft is to be used for.

ie. Air Jamaica saves millions using A320/21 aircraft, but BWIA uses 738's because airbuses are more expensive to operate out of POS.

or atleast that's what BWIA said