Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR
Eyad89 wrote:dtw2hyd wrote:speedbored wrote:AA, for example, flew almost 80bn empty ASKMs in 2016 and still made a huge profit.
Ok, compare 2016 numbers
AA-81.5% load factor with ~402K departures.
EK-75% load factor with ~187K departures.
Last time AA had load factor below 80% was in 2004.
And AA is not ordering planes like there is no tomorrow, even with such huge profits.
We cannot blame the A380 alone for the 75% load factor. What about the fact that their smallest frame is 77W? And many of those frames are over 400 seats. They are forced to send 77W even to the thinnest of routes. If their A380 isn’t doing well on some routes, they can simply downgrade to 77W. But what if their 77W isn’t doing so well? What happens to their loadfactor then?
We can only make a conclusion if we see the average loadfactor per route/type.
mariner wrote:And some of the finest aircraft I've ever flown have been financial disasters - the VC-10, for example.
speedbored wrote:mariner wrote:And some of the finest aircraft I've ever flown have been financial disasters - the VC-10, for example.
The ultimate example being Concorde - an amazing achievement, awesome aircraft to fly in, but a huge financial disaster. Very glad they did it though.
I'm also not certain that any of these "financial disasters" were actually quite as bad as people seem to think. Even loss making programs create lots of jobs, are often still profitable for suppliers, and always provide technology development and learning opportunities. And just because an aircraft is made and sold at a loss does not mean that the manufacturer cannot achieve significant earnings from supporting that aircraft post-sale.
kitplane01 wrote:I'll answer that.
Airbus has been building A380s for at least 12 years. They have presumably already extracted much of the possible efficiency and learning that can be had. The production rate is slowing. They have not told the media of new and important production cost reductions, which if they did exist their stockholders would want to know about.
We have reasons to believe that the costs are not going to significantly decrease ... and no reason to believe otherwise.
Their geographically scattered production system is probably exactly what you don't want to minimize production costs under a low rate schedule.
olle wrote:Airbus hade One goal. Keep A380 in production 10 years.
In 2027 the market for bigger airplanes will have increased. Many 747 and current A380s is up for replacement.
Neo with a new more efficient RR engine is available. With a stretch and wing extensions perhaps it will be 20% more efficient then current model and the 20% efficiency difference to b777x and a350 will be restored.
I have the sensation that 777x will be complicated to sell in 2027.
Revelation wrote:olle wrote:Airbus hade One goal. Keep A380 in production 10 years.
In 2027 the market for bigger airplanes will have increased. Many 747 and current A380s is up for replacement.
Neo with a new more efficient RR engine is available. With a stretch and wing extensions perhaps it will be 20% more efficient then current model and the 20% efficiency difference to b777x and a350 will be restored.
I have the sensation that 777x will be complicated to sell in 2027.
It's hard to picture how EK's business and whatever other top-off / replacement orders come along will justify a 2027 NEO. A lot rides on getting China to take the finishing line and to start buying and utilizing a meaningful number of A380s, and doing this in a way that doesn't cannibalize EK's business.
speedbored wrote:mariner wrote:And some of the finest aircraft I've ever flown have been financial disasters - the VC-10, for example.
The ultimate example being Concorde - an amazing achievement, awesome aircraft to fly in, but a huge financial disaster. Very glad they did it though.
I'm also not certain that any of these "financial disasters" were actually quite as bad as people seem to think. Even loss making programs create lots of jobs, are often still profitable for suppliers, and always provide technology development and learning opportunities. And just because an aircraft is made and sold at a loss does not mean that the manufacturer cannot achieve significant earnings from supporting that aircraft post-sale.
frmrCapCadet wrote:Just an arithmetic note: For EK to have a hundred 380s flying, but buying 6 a year it needs to fly each 380 16.5+ years.
CFRPwingALbody wrote:No this issue: Aviationweek A380 Wing rib feet crack
speedbored wrote:frmrCapCadet wrote:Just an arithmetic note: For EK to have a hundred 380s flying, but buying 6 a year it needs to fly each 380 16.5+ years.
I believe that the 6-rate is currently just a study, rather than a definite decision - they have announced a cut to rate 8 from next year and, with one or two additional top-up orders (e.g. from BA), rate 8 might just end up being sustainable.
neomax wrote:Everyone has a price.
Airbus is not immune to this. If anyone can make Airbus an offer that they can't turn down, it's Emirates. EK has proven itself to singlehandedly be responsible as the reason the world's largest passenger airplane continues to live on for at least another decade or two and that is nothing to sneeze at. They have serious street cred in Toulouse, and Airbus KNOWS Emirates wants the NEO and have a guarantee that they will order them if Airbus makes the NEO. Based on EK's track record for the past 100 A380's, Airbus has no reason not to believe them and that is Emirates's biggest ace. Airbus knows that if Emirates wants 200 A380NEO's, they will take delivery of 200 A380NEO's and it is almost impossible for the cost-benefit analysis to not favor an update at that level of scale. Airbus have done an A320NEO, an A330NEO, and they would be idiots not to do an A380NEO with a guarantee of production. I cannot emphasize how important this point is. At least 70-80% of the plane is done from the start, and Airbus doesn't even have to guess what the order book looks like- they already know! When a loyal customer shows you their cards, you don't say no, it's just not something you do if you don't want them to walk away from orders in the future. A customer who wants your product so much that they are willing to give you a huge order just so you can keep making it is the dream scenario for any company, and Airbus has nothing to lose. Any new A380's that Airbus makes are money that it's not losing by not making them. Airbus can crunch the numbers as can anyone else because the NEO order is public knowledge. Airbus' talk of not making the NEO is little more than a smoke and mirror negotiating tactic to secure future production- which they have now gotten. However the reality is, they are not going to lose one of the best monopolies of all time because some armchair CEO decided otherwise; these are very expensive planes and to own this market of all markets is a dream come true for any aerospace giant. It is utterly laughable to think Airbus will not make the NEO, especially after this top up order, which basically has the sole purpose of being a very expensive message from EK that they will fund this program for as long as it takes to make the NEO, so Airbus better make it. $16 billion is a shit ton of money for any industry, and it is not taken lightly by anyone; it is to make a statement. Now that EK has removed any doubt about the fate of the program for as long as it would take to make the NEO and made their ambitions clear, there is nothing left to negotiate; they wanted a guarantee of production and they got it. The BA order is the icing on the cake, and after that Airbus will announce the A380NEO and EK will buy 200 of them as promised. Ultimately, what Airbus wants is a production bridge to get new orders as air travel rockets as they forecasted it would, and for the plane they designed and the EK order gives them exactly that, so it is beyond foolish to think the NEO will not be built to accomplish this. As existing orders reach a close, the A380NEO will live on into the 2050's and by that time, any airport where congestion is bearable now will not be then. If you look at the growth in air travel in the last 30-40 years, it is not hard to realize that the A380 is indeed a plane ahead of its time, but one that would be perfect when its time finally arrives. The world that Airbus had originally designed for will finally be a reality and it will prime time for the program as EK reaps the advantages of a world that many find impossible today. My dad has frequently told me that he could not imagine the level of air travel he sees today in his wildest dreams, and that it is only going to go up from here. The A380 will be for that time what the 787 is today; the right aircraft at the right time. Airbus has bet on the right aircraft at the wrong time, but even a broken clock is right twice a day.
speedbored wrote:The ultimate example being Concorde - an amazing achievement, awesome aircraft to fly in, but a huge financial disaster. Very glad they did it though.
mariner wrote:speedbored wrote:The ultimate example being Concorde - an amazing achievement, awesome aircraft to fly in, but a huge financial disaster. Very glad they did it though.
I agree, the most exciting aircraft I've ever flown - an extraordinary combination of thrill and prestige.
I get a somewhat reduced version of this every time I get on the Emirates A380 to/from Australia. The sense of space is wonderful and even now I am always slightly amazed that such a huge machine can get off the ground. It doesn't have the punch of Concorde - you don't get to see the curve of the earth or experience the super sexy landing - but I take what I can get - LOL. The space remains great.
Most every other aircraft is bland in comparison. I flown the 787 and A350, it's tough to pick between them, and the 777 feels - to me - slightly claustrophobic. I think choosing the A380 may be the smartest move Emirates ever made, it has, for many passengers, a wow factor.
That this hasn't translated to sales is puzzling, but I suppose part of it is tied up with the GFC and the rise of the LCC's/ULCC's - the general down-grading of civil aviation that happened for a while.
I'm amazed that British (or someone) doesn't use them for LHR-JFK. It would restore some of the lost sense of prestige that would set British apart from the crowd.
Posters on a.net keep telling me that people flying the route want frequency - a concept much loved by US airlines - but I'm not suggesting that the A380 would be the only aircraft British would fly trans-Atlantic.
mariner
flee wrote:douwd20 wrote:The one airline the A380 works for signs up for more. Not a shocker really. The inevitable is just kicked down the road.
I believe that is what Airbus needs precisely for the market to catch up. By 2025-2030, more and more airports will run out of slots and frequencies cannot be increased. The only way to increase capacity is to use larger aircraft. RIght now, many airlines are abandoning smaller jets like the B737-7 and A319 and upgauging to the B737-9/-10 and A321.
douwd20 wrote:Had it not been for one airline, Emirate, the A380 would have died years ago.
scbriml wrote:Shame they couldn't get this done and dusted for the Dubai air show.
I guess some people will be disappointed.
mariner wrote:douwd20 wrote:Had it not been for one airline, Emirate, the A380 would have died years ago.
But - happily - there was that airline and the A380 didn't die.
mariner
Arion640 wrote:Terminal 7 at JFK can't handle the A380. No A380 capable gates. If they could send it there, there probably would have been a one off by now.
I doubt they'll ever be an A380 gate etheir, a complete dump of a terminal that pratically needs knocking down and re building. Some stands require aircraft to shut down and be tugged on.
douwd20 wrote:Hub and spoke is fading and point-to-point is expanding. The A380 only works for hub-and-spoke and even then only in a limited number of airports.
WIederling wrote:kitplane01 wrote:We have reasons to believe that the costs are not going to significantly decrease ... and no reason to believe otherwise.
The footprint of A380 dedicated infrastructure has been significantly reduced. Buildings have been repurposed
and some associated workforce are thus removed from the A380 production cost run up. ( now available to A350 and my guess A320 production.)Their geographically scattered production system is probably exactly what you don't want to minimize production costs under a low rate schedule.
Some really hate that, do they?
But it is quite effective for high value product manufacture. Even more for low number production.
BaconButty wrote:kitplane01 wrote:I'll answer that.
Airbus has been building A380s for at least 12 years. They have presumably already extracted much of the possible efficiency and learning that can be had. The production rate is slowing. They have not told the media of new and important production cost reductions, which if they did exist their stockholders would want to know about.
We have reasons to believe that the costs are not going to significantly decrease ... and no reason to believe otherwise.
Their geographically scattered production system is probably exactly what you don't want to minimize production costs under a low rate schedule.
Your obsessed with the cost side of the equation. Due to lack of orders and the ensuing low production rates, Airbus has clearly not been able to realise anticipated costs savings. So earlier orders are being produced at a marginal loss (probably profitable when ancillary revenue is taken into account). However there's the other side of the equation, revenue. Do you honestly think that they are daft enough to continue to sell at a loss making price now that the ugly reality is clear? On the same terms as the current deliveries, from an order in 2013 when expectations were quite different?
olle wrote:In 2027 the market for bigger airplanes will have increased. Many 747 and current A380s is up for replacement.
Neo with a new more efficient RR engine is available. With a stretch and wing extensions perhaps it will be 20% more efficient then current model and the 20% efficiency difference to b777x and a350 will be restored.
oslmgm wrote:Arion640 wrote:Terminal 7 at JFK can't handle the A380. No A380 capable gates. If they could send it there, there probably would have been a one off by now.
I doubt they'll ever be an A380 gate etheir, a complete dump of a terminal that pratically needs knocking down and re building. Some stands require aircraft to shut down and be tugged on.
Since I've never been at Terminal 7, I got curious about it's layout, so I had a look at Google Maps: https://www.google.com/maps/place/Termi ... 73.7827185
I know that this satellite picture is just one random point in time, but still it's a bit fascinating that there are FOUR 747's from British Airways parked at the same time. How common/uncommon is that?
Arion640 wrote:oslmgm wrote:Arion640 wrote:Terminal 7 at JFK can't handle the A380. No A380 capable gates. If they could send it there, there probably would have been a one off by now.
I doubt they'll ever be an A380 gate etheir, a complete dump of a terminal that pratically needs knocking down and re building. Some stands require aircraft to shut down and be tugged on.
Since I've never been at Terminal 7, I got curious about it's layout, so I had a look at Google Maps: https://www.google.com/maps/place/Termi ... 73.7827185
I know that this satellite picture is just one random point in time, but still it's a bit fascinating that there are FOUR 747's from British Airways parked at the same time. How common/uncommon is that?
Thats very common. Almost a daily thing. BA are sending a plane to JFK every 1.5-2 hours during the day, but due Heathrows curfew they can't depart home until the evening NYC time.
douwd20 wrote:Hub and spoke is fading
douwd20 wrote:and point-to-point is expanding.
oslmgm wrote:Arion640 wrote:oslmgm wrote:
Since I've never been at Terminal 7, I got curious about it's layout, so I had a look at Google Maps: https://www.google.com/maps/place/Termi ... 73.7827185
I know that this satellite picture is just one random point in time, but still it's a bit fascinating that there are FOUR 747's from British Airways parked at the same time. How common/uncommon is that?
Thats very common. Almost a daily thing. BA are sending a plane to JFK every 1.5-2 hours during the day, but due Heathrows curfew they can't depart home until the evening NYC time.
Then maybe that's another reason for using older 747s instead of new A380s, if the utilization is not very high?
kitplane01 wrote:But why would a scattered production system be *better*? Consider the transportation problems.
I'm also not certain that any of these "financial disasters" were actually quite as bad as people seem to think. Even loss making programs create lots of jobs, are often still profitable for suppliers, and always provide technology development and learning opportunities. And just because an aircraft is made and sold at a loss does not mean that the manufacturer cannot achieve significant earnings from supporting that aircraft post-sale.
Even a quick look at any recent IATA annual report would debunk the "point to point is the future" myth.
The numbers of unique city pairs with airline service has shown a pretty constant increase in numbers year on year for at least 10 years, and the rate of increase has been outstripped by the general increase in passenger seat-miles. If anything, the rate of increase of unique city pairs has fallen slightly since 787 EIS. The data suggests that point-to-point is actually decreasing slightly as a percentage of the total market.
Arion640 wrote:Terminal 7 at JFK can't handle the A380. No A380 capable gates. If they could send it there, there probably would have been a one off by now.
I doubt they'll ever be an A380 gate etheir, a complete dump of a terminal that pratically needs knocking down and re building. Some stands require aircraft to shut down and be tugged on.
flee wrote:It is just a shame that many other airlines are not able to exploit its capabilities.Emirates is an airline that not only talks but is also prepared to put their money where their mouth is. Kudos to them and I do hope to see them operating the whalejet for a long time to come!
Revelation wrote:Arion640 wrote:Terminal 7 at JFK can't handle the A380. No A380 capable gates. If they could send it there, there probably would have been a one off by now.
I doubt they'll ever be an A380 gate etheir, a complete dump of a terminal that pratically needs knocking down and re building. Some stands require aircraft to shut down and be tugged on.
BA is now putting £52 million ($65m) into that 'dump', and not making it A380-capable, go figure...
Ref: https://runwaygirlnetwork.com/2016/11/2 ... it-enough/
Ref: http://www.futuretravelexperience.com/2 ... erminal-7/
Seems it can't cope with being hit with the current flow of 747s, an A380 seems to be out of the question.flee wrote:It is just a shame that many other airlines are not able to exploit its capabilities.Emirates is an airline that not only talks but is also prepared to put their money where their mouth is. Kudos to them and I do hope to see them operating the whalejet for a long time to come!
As mentioned above, when the owner of the airline looks at his money, he sees a picture of his brother or his nephew. Also, when he's not busy running the airline he switches desks and runs the national aviation authority. It's a pretty unique position to be in.
neomax wrote:Everyone has a price.
Airbus is not immune to this. If anyone can make Airbus an offer that they can't turn down, it's Emirates. EK has proven itself to singlehandedly be responsible as the reason the world's largest passenger airplane continues to live on for at least another decade or two and that is nothing to sneeze at. They have serious street cred in Toulouse, and Airbus KNOWS Emirates wants the NEO and have a guarantee that they will order them if Airbus makes the NEO. Based on EK's track record for the past 100 A380's, Airbus has no reason not to believe them and that is Emirates's biggest ace. Airbus knows that if Emirates wants 200 A380NEO's, they will take delivery of 200 A380NEO's and it is almost impossible for the cost-benefit analysis to not favor an update at that level of scale. Airbus have done an A320NEO, an A330NEO, and they would be idiots not to do an A380NEO with a guarantee of production. I cannot emphasize how important this point is. At least 70-80% of the plane is done from the start, and Airbus doesn't even have to guess what the order book looks like- they already know! When a loyal customer shows you their cards, you don't say no, it's just not something you do if you don't want them to walk away from orders in the future. A customer who wants your product so much that they are willing to give you a huge order just so you can keep making it is the dream scenario for any company, and Airbus has nothing to lose. Any new A380's that Airbus makes are money that it's not losing by not making them. Airbus can crunch the numbers as can anyone else because the NEO order is public knowledge. Airbus' talk of not making the NEO is little more than a smoke and mirror negotiating tactic to secure future production- which they have now gotten. However the reality is, they are not going to lose one of the best monopolies of all time because some armchair CEO decided otherwise; these are very expensive planes and to own this market of all markets is a dream come true for any aerospace giant. It is utterly laughable to think Airbus will not make the NEO, especially after this top up order, which basically has the sole purpose of being a very expensive message from EK that they will fund this program for as long as it takes to make the NEO, so Airbus better make it. $16 billion is a shit ton of money for any industry, and it is not taken lightly by anyone; it is to make a statement. Now that EK has removed any doubt about the fate of the program for as long as it would take to make the NEO and made their ambitions clear, there is nothing left to negotiate; they wanted a guarantee of production and they got it. The BA order is the icing on the cake, and after that Airbus will announce the A380NEO and EK will buy 200 of them as promised. Ultimately, what Airbus wants is a production bridge to get new orders as air travel rockets as they forecasted it would, and for the plane they designed and the EK order gives them exactly that, so it is beyond foolish to think the NEO will not be built to accomplish this. As existing orders reach a close, the A380NEO will live on into the 2050's and by that time, any airport where congestion is bearable now will not be then. If you look at the growth in air travel in the last 30-40 years, it is not hard to realize that the A380 is indeed a plane ahead of its time, but one that would be perfect when its time finally arrives. The world that Airbus had originally designed for will finally be a reality and it will prime time for the program as EK reaps the advantages of a world that many find impossible today. My dad has frequently told me that he could not imagine the level of air travel he sees today in his wildest dreams, and that it is only going to go up from here. The A380 will be for that time what the 787 is today; the right aircraft at the right time. Airbus has bet on the right aircraft at the wrong time, but even a broken clock is right twice a day.
speedbored wrote:mariner wrote:And some of the finest aircraft I've ever flown have been financial disasters - the VC-10, for example.
The ultimate example being Concorde - an amazing achievement, awesome aircraft to fly in, but a huge financial disaster. Very glad they did it though.
I'm also not certain that any of these "financial disasters" were actually quite as bad as people seem to think. Even loss making programs create lots of jobs, are often still profitable for suppliers, and always provide technology development and learning opportunities. And just because an aircraft is made and sold at a loss does not mean that the manufacturer cannot achieve significant earnings from supporting that aircraft post-sale.
flee wrote:mariner wrote:douwd20 wrote:Had it not been for one airline, Emirate, the A380 would have died years ago.
But - happily - there was that airline and the A380 didn't die.
mariner
Whatever it is, the travelling public are richer for it. The A380 is good for passengers.
It is just a shame that many other airlines are not able to exploit its capabilities.Emirates is an airline that not only talks but is also prepared to put their money where their mouth is. Kudos to them and I do hope to see them operating the whalejet for a long time to come!
frmrCapCadet wrote:res that last dozen posts: smaller planes get bigger, very large planes get fewer.
frmrCapCadet wrote:res that last dozen posts: smaller planes get bigger, very large planes get fewer.
Bald1983 wrote:speedbored wrote:mariner wrote:And some of the finest aircraft I've ever flown have been financial disasters - the VC-10, for example.
The ultimate example being Concorde - an amazing achievement, awesome aircraft to fly in, but a huge financial disaster. Very glad they did it though.
I'm also not certain that any of these "financial disasters" were actually quite as bad as people seem to think. Even loss making programs create lots of jobs, are often still profitable for suppliers, and always provide technology development and learning opportunities. And just because an aircraft is made and sold at a loss does not mean that the manufacturer cannot achieve significant earnings from supporting that aircraft post-sale.
In the end, what matters is whether the planes make money for the manufacturers and the airlines that fly them. Twenty orders and an option for 16 more, may keep the program from expiring but it is going to take more than that to "save" the A-380. The Concorde was a magnificent piece of design and engineering but it was too small and too fuel inefficient to be anything more than a national prestige aircraft. The A-380 was intended to be a big seller but also a European prestige aircraft to usurp the 747. Not it is just a European prestige aircraft introduced at a time when the huge four engine planes were becoming extinct.
Bald1983 wrote:The quads burn a lot of fuel, far more then the twins.
Slug71 wrote:Looks like the EA GP7200 may have a shot with the new order and stay in production afterall. Deal is expected to be firmed by Feb 15th.
https://www.bloomberg.com/news/articles ... 0-contract
And another deal expected to follow soon.
While Rolls-Royce Holdings Plc is supplying Trent 900 turbines for the last 50 A380s ordered by Emirates, the Dubai airline is leaning toward a rival powerplant offered by the so-called Engine Alliance of GE and Pratt for the new batch, according to people familiar with the matter who asked not to be named.
Rolls has balked at offering its turbines on the same keen terms with which it won the initial Emirates business, and made clear that there’s no prospect of developing the much more fuel-efficient Neo -- or new engine option -- model for which the carrier has lobbied.
Emirates will ask EA to deliver a step change in fuel efficiency for the four-engined A380, seen as vital for it to remain competitive with the newest twin-engine wide-body planes, though the venture is likely to offer only incremental upgrades given the limited market, one of the people said.
Revelation wrote:Makes one wonder about the likelihood of seeing RR bid for future A380 NEO placement. Sure, they need a home for their new engine tech, but they also need a business case that works.
frmrCapCadet wrote:res that last dozen posts: smaller planes get bigger, very large planes get fewer.