AIRCRAFT LEASING & PURCHASING: IMPLEMENT A FLEET STRATEGY

PROJECT STATUS : ACTIVE

  • LAUNCH DATE : FEB 2017

  • PRIMARY TARGET : Airlines

  • PROJECT FUNCTIONAL AREA : Network Planning & Flight Operations, Aircraft Lease, Others, Contract Management

  • PROJECT FOCUS : Fleet Planning, Airline Strategy, Aircraft Purchasing & Financing

  • PROJECT SPONSOR : AEROGESTION


Project Summary


FLEET STRATEGY IS ONE OF THE KEY COMPONENTS OF AN AIRLINE'S BUSINESS PLAN.

Any fleeting decision must take into account numerous parameters such as the airline's marketing & sales strategy, its planned network, traffic forecasts, product positioning, aircraft market availability, etc.

A successful fleet acquisition strategy will lead to the airline having the right plane at the right time at the right cost.

Project files

Presentation Aerogestion (en français)     

Project Description

 

AEROGESTION has been accompanying airlines in their fleeting strategy decisions for more than 20 years in situations as diverse as the launch of a new airline, the development of an airliner's network or the need for the airline for renewing its fleet.

 

AEROGESTION is able to provide a specific assistance in fleet definition, financing, aircraft research or cabin layout.

 

AEROGESTION will assist the management of the entire project at each one of its stages, from technical and operational evaluation to fleet economics evaluation, commercial negotiation and contractual advices.

 

Aircraft selection is an iteractive process to elect the best scenario.

 

The following components must be taken into account:

 

Market Analysis

 

Traffic forecast

  • GDP growth
  • Connecting strategy
  • Competition assessment
  • O&D forecast

 

Cabin and market trends

  • Passenger expectations trends
  • Comfort segmentation
  • Competition landscape
  • Cabin trends (IFE, connectivity …)
  • Airline branding
  • Cabin requirements

 

Network development

  • Route opportunities
  • Traffic evolution on each route
  • Capacity versus frequency
  • Network and capacity evolution

 

Fleet mix & fleet plan

  • Number of modules and modules size
  • Fleet evolution over time
  • Fleet plan

 

 

Aircraft Evaluation

 

Aircraft evaluation is a thorough process to limit the risk of having any post-delivery surprise.

 

Cabin configuration

  • Product definition (seat type, cabin split, seat width, seat pitch)
  • Service requirement (galleys, trolley ratios)
  • Other design assumptions
  • Detailed cabin layout

 

Specifications / Options

  • Standard spec content
  • Cabin options
  • Operation options (e.g. CLS, HUD, RNP, ROPS)
  • Customization

 

Weights

  • Customized MWE
  • Customer changes
  • OWE assessment

 

Aircraft Performance

  • Definition of assumptions (Flight profile,
  • Pax & volumetric assumptions..)
  • Low speed performance
  • Payload and mission performance
  • Design weights

 

Maintenance

  • Maintenance costs projections
  • Technology and maintenance program
  • DMC

 

Economics (COC)

  • Fuel, maintenance, navigation, landing,
  • handling charges costs evaluation
  • Cost comparisons

 

 

Fleet Evaluation

 

The ultimate goal of fleet evaluation is to find the most profitable solution resulting from the best compromise between all the different options 

 

Introduction costs

  • Crew training
  • Maintenance crew training
  • Initial investment
  • Commonality and recurrent savings
  • Reconfiguration costs (leased a/c, used a/c)
  • Transition costs and savings

 

Aircraft financing considerations

  • Lease vs. buy
  • Financing strategy
  • Investment plan

 

Commercial inputs

  • Delivery slots
  • Price
  • Engine concession
  • Maintenance proposal from engine manufacturers
  • Maintenance proposal from aircraft manufacturers
  • Support packages to introduction
  • Prices and delivery scheme

 

Fleet economics

  • Cost escalation and fuel price forecast
  • Revenue analysis
  • Cash flow
  • NPV
  • Scenario comparison

 

 

 




Experts / companies available for this project


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AEROGESTION - France
Aérogestion is an independent consulting practice founded in 1996 by Marc Rochet and Dominique Gretz with the help of former collaborators from the airline industry. Aérogestion has developed a recognised expertise in the industry by accompanying first and foremost the success of French airline in their development or restructuring projects. The practice has developed its services in the international environment and more specifically on the African continent. Parallel to this geographical development, the practice has broadened its competencies, particularly in the field of Revenue Management, which constitutes today a recognised centre of excellence where Aérogestion practices for several airlines. At present, the practice counts more than a dozen consultants with an average of 20 years of expertise in their field and with competencies covering all of the fields of the industry, such as airline management, sales and distribution, airline operations, airline restructuring or change management. Aerogestion's vocation is to become the airline's partner to accompany the airline in each and every key step of its business or of its investments.