Question

Airlines are comprised of many types of aircraft within their fleet to accomplish the route structure for the airline. Discuss the core components of planning for airlines from a fleet management perspective. You should examine how the airline’s fleet can impact route structure, the customer experience, safety, and the planning process.

Include an example on how this can impact your mock airline’s passenger demand patterns from a pleasure vs. business travel perspective.

Answer 1

Airline fleet management is the process of determining the optimal number of aircraft needed by an airline to maintain the level of service while at the same time maximizing its profit.

To begin the process of Fleet Management, one must first understand the network and the routes that the airline will be flying, as well as the demand that is going to be put onto the company. Routes that are longer in range demand bigger aircraft. To complete some of the longer trips, dealing with smaller aircraft would be a debacle, both in the sense of time and finances. Smaller planes have to land more often to refuel. The size of the flight or route means nothing if the aircraft cannot land at the airport, however.

For this reason, it is essential to research the type of airways the planes will be landing. If there are sporadic trips that the company will be taking part in, it may be useful to look into renting the airplane. Renting an aircraft, especially for trips that are uncommon for the airline, can save loads of money in initial cost, upkeep, and fuel. To net profitability, the airline has to look into all facets of the trip accurately. Having too large a fleet eats money in retention, seat cost, and fuel while having too small a fleet can end up in loss profitability as well.

What an airline fleet consists of influences customer experience as well. Customers may be willing to pay more for the use of newer aircraft. The more modern aircraft have upgraded amenities that serve passengers well. Newer planes are more comfortable, typically more reliable, and can go faster on less fuel. For instance, when the new A380 launched tickets sold out. The ticket phenomenon could be a non-related correlation; however, I would like to believe that when trips were using this airplane, people wanted to experience it.

Davis Enterprises will consist of these smaller planes. As a regional airline, short-haul trips will be the majority of the business. Instead of wasting time and money on larger aircraft, it will benefit the company to go with the smaller options.