5. Airbus A380 general overview
Aircraft general overview
The Airbus A380 is the largest commercial aviation aircraft in service. While the Boeing 747 first used a double deck concept, the A380 is the first aircraft with a double deck on the complete length of the fuselage, offering 50% more floor space with a total of 550 square meters.
The aircraft was developed by Airbus between 2000 and 2007, it first flew in 2005 and entered commercial service with Singapore Airlines in 2007.
A cargo version was also offered to the airlines before being cancelled due to the lack of order and a high pressure on the delivery of the passenger version.
Airbus also emphasizes the smaller environmental footprint of the aircraft.
“With the latest technology,…show more content… When we met Airbus in 2015, they asked us to study the possibility of an Ultra Low Cost Carrier (ULCC) business model and marketing presentation for the A380.
Main and secondary airports
For air transport operations, one key element is choosing the airport at departure and destination.
Airlines operating from Hub will have little choice in the airport of departure but point to point airlines will be able to select the airports they operate to and from based on a number of criteria: facilities available, catchment area, slots availability, airport charges and competition.
Airports operate as local monopolies since airlines there are very little choice for alternative airports in a given catchment area and there are no substitutes to airports. (Pearce, 2013).
In return the airlines operating on the low cost business model will tend to find new under exploited routes where airports have less bargaining power. This means operating to and from secondary airports, offering lower charges to attract airlines.
Those secondary airports are usually far away from large cities and will necessitate dedicated transportation to and from nearby cities. Most of those airports will also offer large parking areas for passengers using their own…show more content… Low Cost proposal for A380
In order to analyze the potential feasibility of the Ultra Low Cost business model for an A380, we have started by describing the complete value chain of air travel, from the passenger first commitment with the booking, until the passenger arrives at his destination or hotel.
We then have defined a business model canvas with all the features of such operations and decided on which activities and features would bring the best fit and re-enforcing competitive advantage.
Those strategic decisions then helped us imagining all the possibilities to go one step further on the low cost carrier principles, having in mind the opportunities offered by the specific characteristics of the A380.
One could say that everything has been tried in the airline industry and only few succeeded in running profitable operations in the long-haul low-cost segment.
We believe, though, that there is still room for innovation, and that sometimes, the good ideas used in the good context with a good fit between all other ideas could bring a major competitive advantage and create a profitable and sustainable