COMMERCIAL AVIATION MANAGEMENT FUNCTIONS

Commercial Aviation Management Functions

Commercial Aviation Management Functions

Introduction

The main purpose of this paper is to describe that what are the basic advantages that an airline can get via fleet commonality? The terminology of fleet composition is commonly termed as a high incorporated type of fleet composition it is mainly consisted of only one aircraft type and is a part of so-called fleet families. Fleet composition is commonly considered as an important strategic field, for airlines it is very beneficial for low-cost carriers.

Discussion

The main advantage of airlines via fleet commonality is that they are capital intensive in nature, and they are long lived, thus it is the best determinant of airlines fortunes for years or decades. Researches show that the scientific literature and evidences on the issue of fleet composition are very scarce and are not that much found (Alamdari 2005 377). There are some existing articles that talk about the short-term, tactical fleet commonality advantages than the long-term fleet composition. In recent times, a preliminary research about the fleet commonality has published. According to a recent research by Seristö & Vepsäläinen (1997), the main advantage of an airline via fleet commonality is the cost saving, through a fleet commonality an aircraft can attain the cost saving. There are some interesting observations made by an author Kilpi in 2007, who worked for diagnosing the developments in fleet commonality. Apart of Kilpi, no other author has presented the reliable estimates that fleet commonality provides higher performance. Some researches on fleet commonality suggest that the fleet commonalities give proper strategic advantages to the airlines (Espirito 2004 97).

Fleet commonalities are commonly known as a heart of an organisation. Fleet decisions are not only advantageous in terms of financial aspects, but they are also important and advantageous with regards to operational practices as well as the commercial product in detail. Fleet commonality also helps in providing the independent backing and professional support. The purpose of fleet decision, is to provide and help aircraft in difficult trade-off calculations, and making it sure that all the functions like financial, economical, commercial and operational are protected and provide a guard objectivity in all the processes (Caves 1984 12).

The problem of fleet rollover remains such that some of the earlier A320s are being displaced by subsequent examples, leading to some problems in placing the former. The move towards fleet commonality is to the advantage of the airline, but with the sustained emphasis on yield improvement, the type can be viewed as too large. The capacity of the airline is also perhaps more suited to the needs of more mainstream carriers, the very operators who are not in a mood to increase capacity. The inferior performance of the -100 in any event is not adding much value for operators.

Compared to the B757, rentals are slightly higher, but the benefits of fleet commonality can make up for some of the differential. The next quarter is not expected to see any real improvement due to a traditionally weak ...