Posts: 148
Joined: Wed Apr 21, 2004 1:37 pm

Legacies And The B787-One Way To Stay Profitable?

Thu Mar 10, 2005 2:00 am

I know purchasing or leasing new B787's to replace B767's would require a ton of capitol that none of the US Legacy carriers have right now. My question is, if a 20% decrease in fuel burn is realized with the B787 over the B767, at what point (i.e. how expensive does oil have to get...US$70 a barrel?) would any airline, including those under BK protection, have to look at the 20% decrease in fuel burn and replacing an entire B767 fleet as the only way to stay profitable? For those airliners under BK protections, could creditors require and bankroll a radical fleet change, such as a large B787 order, in order to stop the bleeding caused by incredibly high fuel prices?
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RE: Legacies And The B787-One Way To Stay Profitable?

Thu Mar 10, 2005 2:06 am

Sometimes it is neccessary to spend money to make money, but I don't think that applies here. The fuel saving would easily be eaten up by the lease or purchase cost. As for the 767, it is cheaper to keep an airplane you own than to buy/lease a new one, even if it cost you more in fuel. This is the sole reason the DC-9 is still around with NW.

Is it cheaper to run and own a car with no payments but that requires more fuel and maint, or is it cheaper to make a car payment, pay less in fuel and near zero in maint?

It is always cheaper when you dont have a payment.
One Nation Under God
Posts: 5512
Joined: Sat Jul 31, 2004 9:35 pm

RE: Legacies And The B787-One Way To Stay Profitable?

Thu Mar 10, 2005 2:13 am

Three things with the 787 will help carriers:

1. Reduction in fuel burn of a direct replacement - same capacity aircraft which the airlines are capable of filling on a regular basis today. This reduces the one uncontrollable cost.. Fuel.

2. The pricepoint of the 787 is actually cheaper in todays dollars than the 767 family and 757-300, thus Reduced capital cost. Lease rates will be no more than the 767's in use on leases. Fact is, a 767 bought at it's launch time now costs just as much to operate as the last 767 that rolled off the line as a result of increased maintenance and fuel costs.

3. Reduced maintenance cost over the 767 family.

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