Page 8 - AAA MARCH - APRIL 2018 Online Magazine
P. 8
Fresh Tailwinds gramme.” It notes that “therefore to selling up. The dramatic rise of
ccording to an Ascend the size of the potential market premium economy class shows
report issued late last becomes a key factor in deciding that passengers will pay more if
year, the response from whether to proceed with a new you present the value case.
ABoeing and Airbus to fill launch. For example, if only 1,000 For the 797 that will be a no
this market segment will be “very aircraft were sold, a US$20 billion brainer. Most passengers will
different. It notes that Air Lease investment needs US$20m per have aisle or window seats in
Corporation’s Steven Udvar-Hazy aircraft extra on the price just to economy while all premium econ-
has been vocal in calling for such pay back the development costs, omy will be aisle or window and
an aircraft as the 797, and ALC compared to an A321 full life base business / first passengers will
has placed a launch order for the value (FLBV) of around US$54m.” have only aisles suites. Boarding
Airbus A321neo LR – which is the Thus, it argues that an all new will be much faster, and the over-
closest current or new type that aircraft would require a market head bin space will be greater
fits the bill in terms of seats and of 3,000-4,000 units in order to than any other aircraft. Add in
range capability to replace 757s. look attractive. The 797 capability large 787 style windows and
Ascend warned that “developing means it can cover the world’s big- 777X cabin architecture and you
an all-new 220-240-seater would gest markets of the Transatlantic really will have a dream machine.
likely cost as much as a larger market, routes around Asia and The message to Boeing and air-
wide-body programme.” It says to Australia, and routes from line chiefs is simple. Listen to the
that the “costs of developing a the three Gulf hubs to much of growing chorus of passengers
new programme do not neces- Europe and Asia. However, the voicing concerns over cramped
sarily scale down with a smaller other key element in making the airline seating and remember not
aircraft, so an all-new 220-240 797 works, are the airline’s them- everything that counts can be
seater would likely cost almost as selves. Far too many just focus counted, and not everything that
much as a larger wide-body pro- on price with little or no thought can be counted counts.
8 | March/April 2018 www.GBP.com.sg/AAA
