|Quoting EK413 (Reply 30):|
Wasn't VS the launch customer for the A346 & got a sweet deal from Airbus in return...?
Yes. They weren't supposed to be but someone (Swiss?) pulled out and VS
were next in line. As a result they got a great deal....supposedly making the A346 impossible to pass up. (allegedly this even included fuel burn incentives and guarantees which covered the difference in fuel burn over a B77W) The earlier ones were significantly heavier, and this was also factored in to the deal.
At the time, which now more than 10 yeas ago these aircraft were a great deal but the price of fuel now is making a huge difference.
|Quoting 135mech (Reply 26):|
Yes, because Sir Branson always made a HUGE ordeal out of that phrase and made sure it was "heard"... and then quitely the 777's showed up and he stopped saying that so much anymore.
He didnt make nearly as huge a deal as people remember, and the slogan was part of the A346 deal with Airbus, who were desperately trying to sell the A346 which at the time was up against the faster selling B77W. It was thrown around for a while to coincide with the A346 EIS and then put on the back of the aircraft for a few years. Like almost all marketing slogans it lost its relevance, and VS
did the right thing and moved on (as would any decently run business!)
BTW, not to nitpick, but for reference VS
took A333's, not B777's
|Quoting lightsaber (Reply 27):|
Interesting. I still do not see VS flying the A380. It is too small of a subfleet to be economical
I suspect you're right, but I'm not ruling it out just yet. 6 Frames to LAX
could work. Particularly if followed up with another 4 or so for leisure routes to MCO
. The problem is the lack of flexibility, they would work for most of the year on these routes but there would be a few weeks where they would be a total liability. I guess thats true of almost every route ,so it comes down to whether the good times would outweight the bad
|Quoting Lufthansa (Reply 31):|
If you had purchased them yes! But if you are leasing them (which is probably a higher cost way of financing the aircraft's use than a long term loan) then you simply don't renew your lease and lease something else. You're not taking a hit on the aircraft's value, the lessor is. Of course there is the cost of reintroducing a new type. This may motivate the lessor to drastically slash the lease payments (see the DL MD-80 fleet a few years ago in bankruptcy when they thought they were going to be dumped). It all depends on the market. In the case of the 744.... for those operators hanging on to them for a bit they're largely costing them nothing in terms of finance so its just operating costs. In the short term it may be worth it, but of course in the long term something must be done.
renewed the leases on the B744 leisure fleet for exactly that reason. They were up for renewal and the lessor, knowing they would struggle to find homes for them, pretty much halved the lease rates meaning that VS
could do £50m worth of refits for free (and then some!). Not a bad deal if you still need that kind of capacity.
The A346 are a different matter. As nice as they are from an enthusiasts (and passengers) perspective they are generally far more expensive to operate than a B744.
That said, on a perfect day the A346 is still unbeaten in terms of available cargo capacity, even compared to the B77W. Shame those occasions are few and far between...........
So long 701, it was nice knowing you.