Quantcast

How airlines decide their fleet mixes: Key considerations

Riyadh Air plans new jet order decision early next year
Calls for a blanket ban on politicians receiving free flight upgrades
Wizz Air Loses Challenge Against EU-Approved Romanian Aid for TAROM
LA Considers $25 And $30 Minimum Wages For Hotel And Airport Workers
Airlines are on the hook for more than you think if something goes wrong with your trip
WA Labor & Industries plans to create new airline worker protections
Airlines must now give automatic refunds for significant delays. Here's what to know.
American Airlines Technical Operations, Fleet Service, Cargo and Central Load Planning team members ratify new agreement
Spirit Airlines Pursues Bankruptcy as a Path to Tie-Up With Frontier
American Airlines fined $50M for violating disability laws
Canada's flight attendant union applauds NDP bill to end unpaid work in the airline sector
American Airlines testing new technology that would crack down on boarding
Exciting New Airline Routes Coming to North
Another city ignores airport commission's advice, zones for housing near JWA
United shares hit pre-pandemic high after airline forecasts strong finish to 2024, plans buyback
Alaska Airlines Just Made Its Loyalty Program Even More Lucrative With New Rewards, Better Upgrades, and More
Food safety problem closes Detroit airline kitchen leaving 200 flights without meals
5 Reasons Why Kazakhstan's Air Astana Is Establishing Itself As A Key Player In Asian Aviation
JetBlue is no longer serving hot food in economy class on transatlantic flights
Video shows traveler hurl computer monitor at Frontier employees in Chicago
White House 'in touch' with airlines as hurricanes Helene, Milton spark price-gouging fears
Airline bans two items from luggage amid conflict in the Middle East
Turkish Airlines pilot dies midflight, leading to emergency landing in New York
Spirit Airlines Explores Bankruptcy Filing
Airlines turn to AI to allocate gates and cut waiting times
American Airlines Passengers Save Woman from Alleged Violent Male Companion on Flight
Garuda Indonesia and Japan Airlines (JAL) Form Joint Business Agreement — What To Know
Here's how Southwest Airlines' new seating and boarding process will work
Delta Adds New Route to Asia
Southwest Airlines will begin selling assigned seats in 2025
How airlines decide their fleet mixes: Key considerations
Policy
Webp messenger creation 52a65b58 5627 4954 899a aad9b5da118d
Airbus A330neo | Wikipedia

Of all the decisions an airline has to make, determining its fleet mix is crucial. The choice of aircraft impacts various operational aspects such as route networks, flight frequencies, cabin classes, and fare prices. This decision-making process involves extensive analysis and risk assessment as airlines weigh the advantages and disadvantages of different aircraft models.

The process of selecting aircraft for a fleet is complex and interconnected with other strategic business decisions like route choices and fare structures. Fleet commonality plays a significant role by allowing airlines to benefit from economies of scale in maintenance and pilot training.

Aircraft manufacturers design their planes with market needs in mind, often consulting directly with airlines during development. Aircraft are generally categorized into narrowbody for short to medium-haul flights and widebody for longer routes. However, there are many variables within these categories. For instance, Airbus's A330neo typically seats fewer than 290 passengers with a range of 6,550 NM (12,130 km), while the A350-900 accommodates around 325 passengers with a maximum range of 8,100 NM (15,000 km).

Get the Newsletter
Sign-up to receive weekly round up of news from Sky Industry News
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

When acquiring new aircraft, airlines face delays due to production backlogs. A study in the Journal of Air Transport Management highlights that "the fleet planning process is very complex for an airline," requiring consideration of factors like demand, economics, commonality, performance, finance options, type preferences on routes, and market conditions.

Route network compatibility is another critical factor. Airlines analyze their current or future network plans to determine suitable aircraft types. Long-haul carriers prefer long-range planes while low-cost carriers might opt for single-aisle jets suitable for multiple daily turnarounds.

Each aircraft model has unique technical attributes such as fuel efficiency, passenger capacity, range capabilities, maintenance costs, reliability factors, and fleet commonality which can influence decision-making. These factors help calculate key profitability metrics like Cost Per Available Seat Mile (CASM).

Return on Invested Capital (ROIC) is essential when purchasing new aircraft as it measures the returns generated versus costs incurred over an asset's service life. Colin Dobson from TransParagon Global explains that assessing commercial viability involves considering lifecycle costs including maintenance solutions and crewing arrangements.

Airlines have several financing options: outright purchase; leasing; or sale-and-leaseback agreements where upfront acquisition costs are transferred to third parties before leasing back assets at higher yearly overheads due to fees involved.

Political influences may also affect decisions—certain regions expect local manufacturers' preference while Western carriers face similar pressures favoring domestic brands like Boeing or Airbus depending on geographic location.

Long-term relationships between airlines and manufacturers often result in more favorable deals due to established partnerships over time.

Organizations Included in this History
More News

Flying privately from New York to London offers unparalleled flexibility and convenience, allowing travelers to choose departure times and airports according to their preferences.

May 19, 2025

British Airways has been fined $4.2 million following two incidents where baggage handlers were injured at London Heathrow Airport.

May 19, 2025

TAP Air Portugal has expanded its network in the United States by launching two new routes.

May 19, 2025

Etihad Airways has announced an order for 28 Boeing widebody aircraft, totaling nearly $14.5 billion, including agreements with engine supplier GE Aerospace.

May 19, 2025

Emirates has unveiled a unique livery for one of its Airbus A380 aircraft, marking a significant step in the evolution of its 'Courier Express' service.

May 19, 2025

Boom Supersonic is seeking to overturn a longstanding US ban on overland supersonic flights, which has been in place since 1973 due to noise concerns from sonic booms.

May 19, 2025