Airbus vs Boeing
#16




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This argument about the A380-vs-B7E7 will doubtless go on and on, until the A380 arrives in volume service, sweeps the 747 fleets away, and probably beyond then too.
But look at history. EXACTLY the same arguments were put by McDonnell Douglas at the end of the 1960s when the 747 was first coming along, that airlines could have three DC-8s for the price of a 747, with a wider choice of departure times and points, yadda yadda yadda .....
Once the 747 came into service scarcely another DC-8 was sold.
What is being said by Boeing is for the consumption of the press (who have swallowed the story well) to gloss over the fact that Boeing don't have a top-line aircraft any more (they delivered just three passenger 747s in 2004, and it's on its way out). And that's what McDonnell Douglas were trying to gloss over as well all those years ago. But the airlines know what they are doing expecting continuing high demand, and indeed strong growth, on the trunk routes, and buying aircraft accordingly.
And look what Emirates, the largest A380 purchaser, are doing. They are developing a new hub as an alternative to existing ones, exactly what the "thin route" people advocate, but they are going for the biggest aircraft to do it with !
But look at history. EXACTLY the same arguments were put by McDonnell Douglas at the end of the 1960s when the 747 was first coming along, that airlines could have three DC-8s for the price of a 747, with a wider choice of departure times and points, yadda yadda yadda .....
Once the 747 came into service scarcely another DC-8 was sold.
What is being said by Boeing is for the consumption of the press (who have swallowed the story well) to gloss over the fact that Boeing don't have a top-line aircraft any more (they delivered just three passenger 747s in 2004, and it's on its way out). And that's what McDonnell Douglas were trying to gloss over as well all those years ago. But the airlines know what they are doing expecting continuing high demand, and indeed strong growth, on the trunk routes, and buying aircraft accordingly.
And look what Emirates, the largest A380 purchaser, are doing. They are developing a new hub as an alternative to existing ones, exactly what the "thin route" people advocate, but they are going for the biggest aircraft to do it with !
#17
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The biggest impact of the 747 vis-a-vis the smaller DC-8/707/Convair 880 planes was that it dramatically lowered the price of tickets, allowing a whole new generation of people to fly. The A380 will do much the same for countries like India and China, I imagine.
If EADS really thought the 7E7 was a pipe-dream, they would not be building the A350, period, much less crash-building it to get it out within two years of the 7E7 and within four years of the A380.
Fuel prices are only going to go up, and a more efficient plane is what is going to be needed to keep fares at a level "the common man" can afford. The A380's efficiency is excellent, but you can't send an A380 to every airport.
All the A330s, A340s, 757s, and 767s are going to need to be replaced over the next 20 years, and the A380 isn't the plane to replace them. The 7E7 will be the most efficient airliner around, and there will be a market for it.
So you will have hundreds of A380s shuttling passengers between the world's main hubs, then hundreds pf 7E7s moving them from those hubs to secondary airports, as well as directly connecting some secondary airports that don't have the traffic patterns to need an A380.
If EADS really thought the 7E7 was a pipe-dream, they would not be building the A350, period, much less crash-building it to get it out within two years of the 7E7 and within four years of the A380.
Fuel prices are only going to go up, and a more efficient plane is what is going to be needed to keep fares at a level "the common man" can afford. The A380's efficiency is excellent, but you can't send an A380 to every airport.
All the A330s, A340s, 757s, and 767s are going to need to be replaced over the next 20 years, and the A380 isn't the plane to replace them. The 7E7 will be the most efficient airliner around, and there will be a market for it.
So you will have hundreds of A380s shuttling passengers between the world's main hubs, then hundreds pf 7E7s moving them from those hubs to secondary airports, as well as directly connecting some secondary airports that don't have the traffic patterns to need an A380.
#18
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Originally Posted by Globaliser
There is one piece of aviation history that illustrates this last point. London-New York was the only commercially viable year-round Concorde route, driven by regular business traffic of the highest yield type. It was also one end of the only other commercially viable scheduled Concorde route, the seasonal low-frequency run to Barbados.
But I digress...your point about LHR being a natural hub is correct. Add to your reasoning the fact that, as transatlantic air travel grew from its infancy, aircraft ranges were limited such that LHR was a required stopping point, as it was the closest major European city before the transoceanic segments. And recall that many early flights had to stop in BGR on their way.
I also agree with the argument that there is room for both the 7E7 and the A380. The 380s will largely replace the 747s on the highest-volume interhub routes. The 7E7, however, addresses the emerging point-to-point model exemplified by many of the LCCs and the hub-to-secondary model of some legacy carriers.
Consider WN. (Read on...I'm not suggesting they'll be a 7E7 customer!) WN for a long time was just a low price, and it was marketed primarily to vacationers. But over the last many years, WN has seen increased usage by business pax. Even as legacy carriers have matched WN's prices on certain city pairs, WN has grown their share of business traffic. Why is that? Well, most business flyers will tell you that they fly WN for the nonstops/directs or to avoid hub connections. They may also fly because of the low prices, but the direct flights are certainly a big factor. Now extrapolate that to longer routes on the legacy carriers. For someone to fly from, say LAS to PVG, the routing would have to be LAS-US hub-PVG or even LAS-US hub-Asian hub-PVG). Vacationers from Shanghai who really want to visit Vegas might be willing to connect once or twice. But business flyers (and there are a heck of a lot of conventions in LAS, and a heck of a lot of businesses in PVG now) would probably pay more for the opportunity to fly nonstop PVG-LAS, or at the least to cut out one hub connection from a two-connection routing. Much like business travellers will fly WN to get a nonstop IND-MCI instead of having to go IND-ORD/DTW/CVG/MSP-MCI, for example. Think of other examples where there might be 200-250 pax wanting to fly between two cities without the hassle and time requried to connect through one or two hubs. US cities such as LAS, PHX, MSY, TPA, RDU, DEN could have enough demand for 5x weekly nonstop to HKG, SIN, PEK, PVG, NRT, SYD, TLV, FCO, CDG, LHR, etc. And the only way to meet that demand would be on a super-efficient aircraft like the 7E7.
The other model that the 7E7 addresses is the hub-to-secondary model. A great example of this routing model is CO's expansion of service into Europe. There has been much discussion of the aircraft used for CO's new European service ex-EWR to places such as GLA, MUC, EDI, OSL, etc. What they're doing now is shifting 777s to the highest-volume routes, replacing shifted 777s with 767s shifted from second dailies or lower-volume routes, and then replacing the shifted 767s with reconfigured 757s. The 7E7 would serve many of these markets with a lower CASM than the 757s or 767s. It may also allow an airline like CO to offer more frequent flights on the high-volume routes (such as EWR-CDG) than by using the 777s. And it certainly will allow them to start serving more cities ex-EWR than currently; lots of Asian destinations would be ideal for this aircraft. Considering that the recently retired uber-CEO of CO, Gordon Bethune, is an ex-Boeing guy, you can see how this kind of strategy lines up with Boeings ideas on the 7E7.
The fact is, business travellers are still where a lot of the big money is. And they won't pay higher fares for the exact same service as the people on holiday three rows back. But they will pay for direct service and more frequent service. That's still going to be the future, and that's where the 7E7 fits in.
#19
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Originally Posted by Boofer
Don't forget that supersonic flight was restricted over land. This was a big reason why LHR-JFK and LHR-BGI were the only "viable" routes (except for CDG-JFK, n'est-ce pas?). I imagine that LHR-TLV and JFK-LAX might have been very successful routes for the Concorde as well, if not for the overland restrictions. And since it's operating costs were so high, it could only be used on the highest yield routes, not just high volume ones.
I'm not sure if this has ever been positively confirmed or refuted, but I believe that CDG-JFK was always economically marginal at best, and a real dog at worst. The route was more expensive to fly (almost 200 miles, or over 5%, longer by great circle), but fuel needs meant that the aircraft was sometimes payload restricted. Most of all, the route was never as high yielding as LHR-JFK, because Paris is not a business centre in quite the same way as London. The statistic that floored me, when I worked it out, was that when BA was still operating a double-daily Concorde to JFK, it was flying 200 Concorde seats each way every day, but only about 100 subsonic first class seats. Even at Concorde's relatively low breakeven load factor, you're still needing a very high yield market to make that work.
Back to the main point of the thread, my contributions have only been to point out where the A380 fits in to the picture. I agree that the 7E7, if technically successful, has a good chance of being a commercial success as well as a replacement aircraft for the aging fleets of its size. That's why the A350 has been launched in such a hurry. But the A350 will have one big advantage over the 7E7, namely CCQ. I think that beancounters at the more financially sophisticated airlines would want to see a financial incentive from the 7E7 to overcome this handicap.
Nevertheless, there are still airports and routes where the A380 clearly has a use. The need can't be entirely bypassed by the smaller aircraft. The size of that market, however, and the speed at which it grows, will determine whether the A380 becomes a commercial success or a financial turkey.
#20
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Originally Posted by Globaliser
I'm not sure if this has ever been positively confirmed or refuted, but I believe that CDG-JFK was always economically marginal at best, and a real dog at worst.
The statistic that floored me, when I worked it out, was that when BA was still operating a double-daily Concorde to JFK, it was flying 200 Concorde seats each way every day, but only about 100 subsonic first class seats. Even at Concorde's relatively low breakeven load factor, you're still needing a very high yield market to make that work.
Back to the main point of the thread...the A350 will have one big advantage over the 7E7, namely CCQ. I think that beancounters at the more financially sophisticated airlines would want to see a financial incentive from the 7E7 to overcome this handicap.
The 7E7 will be more efficient then the A350. It will also probably cost less (based on the 7E7's list price being tens of millions lower then the A330, and one can expect the A350 will at least be as expensive as an A330, if not more). Both should be music to a beancounter's ear.
#21
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Originally Posted by SEA_Tigger
The loss of those passengers made BA's service unsustainable. I imagine AF was looking for an excuse to end their CDG service for years, and followed BA's lead.
Originally Posted by SEA_Tigger
I am not familiar with the term CCQ. Can you clarify?
If you sell an aircraft like the 7E7, where a 7E7 type-rated pilot can basically fly nothing else on that type-rating, the aircraft will need to be a bit cheaper to compensate. And that's before you take into account issues like pilot job satisfaction - even ultra long-haul fleet stalwarts quite like to do some flying from time to time.
#22


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Originally Posted by SEA_Tigger
It depends on the traffic patterns between the two points.
There is enough demand between SEA and CPH for SK to launch service with an A340. If the only plane that could fly that route was a 777 or a 747, it wouldn't happen. There is enough demand between SEA and FRA for LH to justify an A340 (PDX offered them a better deal for the service, so we have to fly down to PDX first, but it's only 30 minutes).
Direct service is a benefit to many higher-revenue flyers, business and leisure. It's one thing to spend an hour at a hub airport between connections. It's another to spend five or ten. Also, time saved being able to fly direct is beneficial. One can save many, many hours with a direct flight, vs. connecting service and that service can command higher fares which can make smaller flights profitable enough to operate.
There is enough demand between SEA and CPH for SK to launch service with an A340. If the only plane that could fly that route was a 777 or a 747, it wouldn't happen. There is enough demand between SEA and FRA for LH to justify an A340 (PDX offered them a better deal for the service, so we have to fly down to PDX first, but it's only 30 minutes).
Direct service is a benefit to many higher-revenue flyers, business and leisure. It's one thing to spend an hour at a hub airport between connections. It's another to spend five or ten. Also, time saved being able to fly direct is beneficial. One can save many, many hours with a direct flight, vs. connecting service and that service can command higher fares which can make smaller flights profitable enough to operate.
Flying passengers from hub to hub is going to be the way most people are going to get from point A to point B. You will always have direct service to major cities but how many people are flying each day from SEA to BUD? or VIE? or DUS? or IST? --- not enough to justify the cost of a 7E7.
#23
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Originally Posted by SEA_Tigger
The CDG crash aside, 9/11 is what really killed Concorde. Forty of BA's top revenue customers were killed in the Towers, evidently, and not only did they spend a ton of cash on Concorde, they controlled the travel budget of a lot of other Concorde passengers, and they're replacement managers stopped flying their employees on Concorde.
These statistics came up in that show.
#24
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Originally Posted by andrewp
Nova ran a very good episode about the Concorde last week (week of 1/17). Your local PBS station may replay it late night this week. Definitely worth watching if you are at all interested.
These statistics came up in that show.
These statistics came up in that show.
#26
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I am sure Boeing took into account the CCQ factor. I imagine it will be compatible with the 777 (since that model will be going forward) to make it easier for operators to use both.
#27




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Originally Posted by SEA_Tigger
As WHBM noted, the A380 and the 7E7 serve different market views.
Airbus believes that the future of air travel is the world's current hubs (JFK, LAX, NRT, SYD, SIN, etc.) will handle more and more traffic. Since these hubs can handle only so many flights a day, the only way to move twice the passengers as now is to have aircraft that can hold twice as many people.
Boeing believes that passengers prefer direct service without having to connect through a hub airport with 100,000 other passengers at the same time in the same terminal building. Therefore, the 7E7's ability to connect pretty much any two points on the planet directly will both take the pressure off the hub airports and expanding service by not requiring time-consuming connections.
In the end, there is room for both.
The A380 offers compelling cost efficiencies over the 747 in it's current 555-passenger mode and the airlines can easily add an extra 100-300 Economy seats (depending on how much they want to scale back their premium cabins), which increases efficiency even more. So you can fly a great many people between two hubs for one of the lowest seat-mile costs around.
The 7E7 will allow airlines to fly 200-250 passengers direct between two points for a very low seat-mile cost thanks to the lightweight airframe and high-efficiency engines. So instead of having to funnel people from all over Europe into LHR, fly them to LAX, and then shotgun them out all over the United States, you can fly direct SEA-CDG and BCN-DTW and BOS-FCO.
Airbus believes that the future of air travel is the world's current hubs (JFK, LAX, NRT, SYD, SIN, etc.) will handle more and more traffic. Since these hubs can handle only so many flights a day, the only way to move twice the passengers as now is to have aircraft that can hold twice as many people.
Boeing believes that passengers prefer direct service without having to connect through a hub airport with 100,000 other passengers at the same time in the same terminal building. Therefore, the 7E7's ability to connect pretty much any two points on the planet directly will both take the pressure off the hub airports and expanding service by not requiring time-consuming connections.
In the end, there is room for both.
The A380 offers compelling cost efficiencies over the 747 in it's current 555-passenger mode and the airlines can easily add an extra 100-300 Economy seats (depending on how much they want to scale back their premium cabins), which increases efficiency even more. So you can fly a great many people between two hubs for one of the lowest seat-mile costs around.
The 7E7 will allow airlines to fly 200-250 passengers direct between two points for a very low seat-mile cost thanks to the lightweight airframe and high-efficiency engines. So instead of having to funnel people from all over Europe into LHR, fly them to LAX, and then shotgun them out all over the United States, you can fly direct SEA-CDG and BCN-DTW and BOS-FCO.
Why are airlines shifting toward smaller widebodies? Because the overwhelming majority of business travelers prefer nonstop flights and higher flight frequency. Would I prefer an airline with one A380 flight a day on a particular route or two 777s? Two 777s give me more flexibility. Maybe there is a later flight that I can take after my business meeting and get home a day earlier, whereas I would have to stay an extra night in order to get the earlier A380 flight the next day.
Would I, as a business traveler with extremely limited time, prefer to change planes somewhere and add hours to my trip just to get on an A380? H*ll no! Nothing beats a nonstop. Nothing.
#28




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What is with all the comments "Boeing doesn't have any good products anymore," "Boeing's planes suck," etc. etc.? Many (I would say most) people consider the 777 clearly superior to the A330/A340 series, and it is still selling quite well. And time will tell whether the 7E7 will be a commercial success, but I predict it will do very well.
#29




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Originally Posted by Tango
Flying passengers from hub to hub is going to be the way most people are going to get from point A to point B. You will always have direct service to major cities but how many people are flying each day from SEA to BUD? or VIE? or DUS? or IST? --- not enough to justify the cost of a 7E7.
Notice that every specific route I mentioned above is fed by hub traffic at both ends due to code shares and alliances. For example, AA's DFW-NRT flight not only has AA's feed at DFW but also JAL feed at NRT due to the JAL code share. NRT-ZRH on LH is served by the LX hub in ZRH and the JL hub in NRT (because of the JAL code share). AA's routes from its hubs to LHR are fed by its alliance partner BA at LHR. These are all hub to hub routes, yet they are served by smaller widebodies. In fact several of them would not exist if 747s or A380s were the only aircraft option.
NH has recently switched almost all of its US-Japan routes (which were previously 744s) to 777s, even though NH has feed from its codeshare partner UA at SFO, IAD, and LAX.
So the argument that lots of hub to hub routes automatically equals lots of demand for A380s is simply not correct.
Last edited by Unimatrix One; Jan 28, 2005 at 8:37 am
#30




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Originally Posted by SEA_Tigger
......All the A330s, A340s, 757s, and 767s are going to need to be replaced over the next 20 years, and the A380 isn't the plane to replace them. The 7E7 will be the most efficient airliner around, and there will be a market for it.
So you will have hundreds of A380s shuttling passengers between the world's main hubs, then hundreds pf 7E7s moving them from those hubs to secondary airports, as well as directly connecting some secondary airports that don't have the traffic patterns to need an A380.
So you will have hundreds of A380s shuttling passengers between the world's main hubs, then hundreds pf 7E7s moving them from those hubs to secondary airports, as well as directly connecting some secondary airports that don't have the traffic patterns to need an A380.
Also, don't discount the need/wish for more flight choices by passengers (especially business passengers) to favor 7E7. While airlines might well save money by carrying more passengers with less frequent flights, some airlines might be able to generate more profit from higher revenue passengers by offering more frequent service. Just my opinion.
LAX

