Some airlines argue new-generation narrowbody aircraft should cost less to acquire than the current generation in addition to costing significantly less to operate. "Airline industry customer yields have been in decline since the launch of commercial aviation. Manufacturing pricing needs to follow this trend, and airlines should expect every new aircraft to offer more for less," says Air New Zealand (ANZ) general manager strategic development Nathan Agnew.
"In the automobile sector it's now common for even low-end models to offer significant safety features and comfort that were unheard of even in luxury vehicles 20 years ago. Commercial airlines shouldn't be different."
EasyJet agrees, pointing out that the price of personal computers has decreased as performance has increased. "In most industries newer technologies actually cost less, not more," says easyJet chief executive Andrew Harrison. "EasyJet has yet to be convinced why commercial aircraft should be any different."
But most carriers expect the next generation of narrowbodies will be roughly the same price or slightly higher than the current generation. Of the 22 carriers which responded to the Airline Business survey, only ANZ, easyJet and Hawaiian Airlines said the new-generation should definitely be less expensive. Two carriers, AirAsia and Japan Airlines, said it should be less expensive or cost the same, and another two, Delta Air Lines and TAP Portugal, said it should cost the same. "It should cost about the same as the current generation of narrowbodies, passing along to airline customers the engineering and production efficiencies that aircraft manufacturers have been achieving," Delta says.
Eight carriers surveyed said they were willing to pay more. But most expect the anticipated 15-20% reduction in direct operating costs to more than offset any price increase, especially after taking into account inflation.
Several carriers were cagey when asked how much the new aircraft should cost, saying it depends on what the manufacturers deliver but that ultimately the aircraft should cost less to own. "The airplane needs to operate and to be owned at 15% less than the current version," says British Airways commercial director Robert Boyle.
Read some of the full airline responses to the Airline Business narrowbody survey.
Source: Airline Business
