Our airport authority client needed to know whether there was a strong business justification to support a multi-million dollar investment in airfield improvements to accommodate the A380, the first new large aircraft to fly.

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Succeeding in a Turbulent Market - Coming Soon

KRAMER aerotek examined market trends and aircraft deployment on intercontinental routes between the United States and Europe, Asia, and the Middle East to discern where airlines will use the new 555 passenger A380.

Client
Port Authority of New York and New Jersey

Critical Questions

• Will the A380 aircraft be used as a replacement aircraft for the Boeing 747 on intercontinental routes?
• Will the A380 help to restore large volumes of connecting passengers at JFK?
• What are likely air service consequences of not accommodating the A380 at JFK?

Context

• The A380 can carry 555 passengers on a nonstop flight of 8,000 nautical miles, roughly equivalent to the distance from New York to Hong Kong.
• High density markets or major spoke routes represent the best use of this aircraft.
• Consolidated air cargo could also be carried along main traffic routes.
• The new large aircraft have dimensional and engineering requirements that require modifications to most existing airfields and terminals.

Conclusions

• The A380 does not represent a major shift in the way wide body aircraft are currently deployed.
• The A380 will be used in both domestic and foreign high-density markets to:
• Replace other wide body aircraft to achieve higher capacities in growing markets
• Replace aging B-747 aircraft used on long haul routes or high density short haul routes mainly between large Asian cities.
• Consolidate flights in large markets that exhibit marginal load factors.
• Gain market share by offering more seats and stimulating traffic through lower fares.
• Carry high volumes of passengers or cargo along main routes into connecting hubs.
• The analysis concludes that the size of the New York regional market, coupled with the traditional role of JFK as the transatlantic port of entry for foreign flag carriers, provides a compelling argument for use of the A380. The A380, due to its high capacity, provides the opportunity for growth in passenger demand while also addressing issues of increased operational congestion in New York and many of the major European gateways.

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