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Can Buyers "Right Size" For Long Term Growth?

Mon May 23, 2005 6:25 pm

An airline buys aircraft that it may own for 10/15/20 years. The demand for air travel is predicted to grow substantially over the next 10-20 years. Assuming that airlines will increase ticket sales on established routes over the years, how do they "right size" the seating capacity needed when choosing to order aircraft that they will operate over a decade or two of rising demand for seats?

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