Luxury versus Luxury – Opposing Air Transportation Strategies

One is enormous, requiring airport renovation and runway lengthening to accommodate. The other is sleek, light-weight and easily able to access regional airports.

The Airbus 380 claims 49 percent more room than a Boeing 747, with operating costs at around 15 to 20 percent lower per seat. The Airbus 380 claims lower emissions, less noise and a seating capacity as high as 800, though a more reasonable configuration will average 525, which is double that of the B747. In the Jumbo class of aircraft, the A380 may well push the B747 to extinction.

The new Boeing 787 Dreamliner, built with advanced composite materials, is ultra-light and fuel efficient. It also has a range that can extend to 8600 nautical miles, traveling at Mach 0.85, while carrying about 280 passengers. Boeing says the aircraft will reduce fuel consumption by 20 percent and operating costs as a result by 15 percent. The B-787 is pressurized for a lower altitude and with higher cabin humidity, which adds to passenger comfort. It is designed to revolutionize point-to-point service.

Issues at play include a depressed travel industry, with fewer long-distance travelers. The A380, at a unit cost of US$327 million has already seen delayed or cancelled orders. The B787 carries a unit cost of US$149 million has, approximately 1000 orders on the books, and, so far, no delays or cancellations. However, a worsening of the travel slump could change that.

Ultimately, though, the battle will be waged on strategy. The hub-based, Super Jumbo strategy versus the point-to-point strategy will define the industry going forward.