January 19, 2005

BEEN DONE SEEN 'BOUT EVERYTHING:

Airbus: master of the sky, or white elephant? (ALASTAIR DALTON, 1/19/05, The Scotsman)

THE European aviation industry staked its future on the world’s largest passenger plane yesterday as Airbus unveiled its 555-seat A380 superjumbo in a glittering ceremony in France.

However, while Tony Blair, the Prime Minister, joined European leaders to underline the importance of the Toulouse ceremony, rivals claimed they were backing a white elephant. [...]

[M]ajor changes will be required to enable airports to handle the aircraft, such as larger boarding and baggage areas, and wider taxiways.

BAA is spending £450 million on modifications to Heathrow airport, which is likely to accommodate the most A380 flights. Some 60,000 A380 take-offs and landings a year are expected there by 2016, enabling nearly ten million more passengers to fly to and from the airport with no increase in numbers of flights.

Only 60 airports worldwide are expected to be capable of handling the superjumbo by 2010, many of them serving routes between Europe and Asia, Australia and the Americas. A spokesman for BAA, which also runs Edinburgh and Glasgow airports, said the A380 was unlikely to serve Scotland for the foreseeable future because of a lack of passenger demand for such large planes. [...]

A total of 149 A380s have been ordered but the total must top 250 for Airbus to cover its costs. United States rivals, Boeing, believe there is no market for such large aircraft and predict future aviation demand will be focused instead on smaller planes that can directly connect smaller airports.


It seems pretty safe to say that none will never land in the U.S..

Posted by Orrin Judd at January 19, 2005 9:50 AM
Comments

It seems pretty safe to say that none will never land in the U.S..

____

From your keyboard to God's ears.

Posted by: erp at January 19, 2005 10:53 AM

They'll have to get gates at least in New York to have any chance of viability, the same way Air France and BOAC did with the Concorde 30 years ago. But if the Port Authority is smart, they'll make the Euros foot the full bill for any terminal redesigns or runway widenings.

But other than Kennedy Airport, it's hard to see where this plane makes economic sense under the current conditions in the United States. Perhaps on the New York-Los Angeles route, but you've got to have at least 500 people at a time wanting to go to the same destination, and the only other way that's done is to fly a whole bunch of people from a big city to a transfer hub, or from one hub to another. Nobody runs 747s on short-route flights now, and no ones going to buy an A380 to serve as the airborne version of the Times Square-Grand Central shuttle.

Posted by: John at January 19, 2005 11:24 AM

JFK and LAX already have construction projects underway to support A-380.

My bet is the 380 will be like the Concorde. It will be marginally operationally profitable, and not repay a dime of R&D costs.

Posted by: Jeff Guinn at January 19, 2005 11:40 AM

Bin laden must be drooling. Damned if I'd want to fly in one.

Long before 9/11 I decided I preferred Manchester NH to Boston; Bologna to Rome or Milan etc.

Picture this: debarking with 800 passengers and getting your luggage, then schlepping to ground transportation. Oy!

However if they were to offer sleepers to Singapore, Australia or China I'd consider it. That would make feasible one or two lifetime trips ... total.

Posted by: Genecis at January 19, 2005 11:48 AM

Much as I'd like to see a Euro boondoggle, I think it will be rescued by growth in travel. Passenger-miles will quadruple over the next thirty years.

Posted by: pj at January 19, 2005 12:00 PM

The problem for Airbus is that the hub system is failing. Boeing is right to concentrate on smaller jets to support non-hub based travel. Moreover, even if the A380 gets the hub to hub market, airlines will still need spoke to hub jets.

Posted by: Annoying Old Guy at January 19, 2005 12:16 PM

A buddy in the worldwide freight forwarding biz tells me FedEx apparetnly wants more than a few of them -- stripped down for cargo of course.

Posted by: John Resnick at January 19, 2005 12:53 PM

Agree with the above that this thing seems to big and appears to be going against the tide of smaller, more direct flights. It will probably take govt subsidiaries or other actions by the EU to make this thing even operate.

PJ - you may be right about the increase in passenger miles. However, with the growth of the internet/videoconferencing/webcams there is growing pressure on restricting business travel. And while personal travel will increase how many people will want to deal with 550 other passengers on their vacation flight?

Posted by: AWW at January 19, 2005 12:57 PM

I travel monthly, and pay a premium to travel point to point whenever possible. The fewer connections, the fewer opportunities for cancellations, delays, lost luggage, lost time in aiports, airport meals, etc.

I believe this is the future, and a big reason that Southwest is propering. Every time SW puts on a flight between two "secondary" cities (e.g., Norfolk to Jacksonville) the major hubs (Charlotte, Atlanta, D.C & Phila in this example)take another hit. The A380 does not fit into this picture.

And yes the thought of 550-800 fellow passengers, with their carry-ons, luggage, infants, and germs is the stuff of nightmares.

Posted by: curt at January 19, 2005 1:22 PM

I travel monthly, and pay a premium to travel point to point whenever possible. The fewer connections, the fewer opportunities for cancellations, delays, lost luggage, lost time in aiports, airport meals, etc.

I believe this is the future, and a big reason that Southwest is propering. Every time SW puts on a flight between two "secondary" cities (e.g., Norfolk to Jacksonville) the major hubs (Charlotte, Atlanta, D.C & Phila in this example)take another hit. The A380 does not fit into this picture.

And yes the thought of 550-800 fellow passengers, with their carry-ons, luggage, infants, and germs is the stuff of nightmares.

Posted by: curt at January 19, 2005 1:23 PM

550? 800? surely you jest. When they get these bad boys going in full cattle car layout (and that is the only way you will see them unless you are a top exec in full expense account mode) there will be close to a 1000.

Imagine this: the Hadj run (where the A380 will get the most use). More than a thousand hadjis screaming, cursing, praying, trying to milk the goats they are carrying with them. The stench will be unimaginable. No stewardesses in miniskirts, security guards with AK-47s wearing wraparound shades and chewing toothpicks. Something Dante never described.

How long to load the plane for international flight? "Show up at the terminal at least 4 hours before scheduled depatrure." Get off the beast? an hour? Your bags and customs with the 1000 others?

This is why All-Nippon turned them down for domestic Jappanese use.

Posted by: Robert Schwartz at January 19, 2005 1:34 PM

As for Robert Schwartz's description— Or think the train trip east in the movie "Dr. Zhivago". This is something only a dedicated Euro could come up with. "Airbus" needs to change its name to "Aircattlecar".

Posted by: Raoul Ortega at January 19, 2005 2:24 PM

AOG:

Try traveling between medium size cities like Rochester, NY, and Milwaukee, WI.

A point-point system will leave at least 2/3 of the US without air travel.

Posted by: Jeff Guinn at January 19, 2005 2:27 PM

Jeff --

The airlines did not put together their hub/spoke systems as a way to serve "at least 2/3 of the U.S." -- they did it to try to monopolize the individual markets.

The day either Milwaukee or Rochester NY finds itself without any air service is the day I lease a couple of 737s and start a new airline.

Posted by: curt at January 19, 2005 3:15 PM

How many northern Illinoians prefer to fly out of Milwaukee than make the trek to O'Hare?

I would if I lived up there.

But I have ORD and Midway to choose from.

Posted by: Sandy P at January 19, 2005 4:02 PM

There are many paths to success, some more odious than others. See the folowing from National Review's "The Corner":

AIRBUS MARKETING [Andrew Stuttaford]

From the Scotsman:

"TSUNAMI-struck Thailand has been told by the European Commission that it must buy six A380 Airbus aircraft if it wants to escape the tariffs against its fishing industry. While millions of Europeans are sending aid to Thailand to help its recovery, trade authorities in Brussels are demanding that Thai Airlines, its national carrier, pays £1.3 billion to buy its double-decker aircraft."

Uplifting, no?

Posted by: LUCIFEROUS at January 19, 2005 4:09 PM

Boeing's strategy here may have something to do with this :
Long Tail Economics

Or maybe they're just losing their nerve. The 707 and 747 were both bet-the-company undertakings, the 777 less so.

Posted by: joe shropshire at January 19, 2005 4:36 PM

curt, check out the cities that already (and for the past 20 years) haven't had service.

Maybe none as big as Milwaukee, but real places that people live in and do business in.

Deregulation was Carter's worst mistake.

It turns out a free market in airline tickets is worse than a regulated one.

Posted by: Harry Eagar at January 19, 2005 6:09 PM

AWW - The Internet will increase travel, for the same reasons computers increased the use of paper. They're complements, not substitutes.

Posted by: pj at January 19, 2005 6:17 PM

Harry --

I'm pleased that I haven't been subsidizing air service for the past 20 years to any airport that has lacked service over that period.

Hundreds of cities have lost passenger train service as well; I'm OK with that too.

Posted by: curt at January 19, 2005 6:36 PM

Having lived in northern IL (5 minutes drive to Wisconsin), I would routinely fly ex O'Hare, Midway, or Milwaukee depending on price.

Posted by: Chris Durnell at January 19, 2005 6:59 PM

Curt:

Very few people in Rochester NY on any given day, or even in a week, want to fly to Milwaukee, but enough want to go to the rest of the world to warrant several DC-9s a day to DTW.

And enough people from the rest of the world want to go to Milwaukee that it justifies several DC-9s/day from DTW.

Hence the hub and spoke system.

BTW--the internet works the same way, for the same reasons.

Posted by: Jeff Guinn at January 19, 2005 8:44 PM

Glad to see the Scotsman article made it here.
The Corner, over at NRO, has coinded the greatest parody of this bunch; Weaselbus and the W380.
My American Airlines Captain friends and relatives surely do agree, and AA flies other Weaselbus aircraft.
Mike

Posted by: Mike Daley at January 19, 2005 9:36 PM

Glad to see the Scotsman article made it here.
The Corner, over at NRO, has coined the greatest parody of this bunch; Weaselbus and the W380.
My American Airlines Captain friends and relatives surely do agree, and AA flies other Weaselbus aircraft.
Mike

Posted by: Mike Daley at January 19, 2005 9:38 PM

curt, it sounds as if you think your flight tickets have been paying their own way.

The subsidies have come from nitwits who bought airline common stock.

I suppose the free traders are going to explain how an economic segment that has generated net losses over 75 years is working, but I haven't seen them try.

Posted by: Harry Eagar at January 20, 2005 11:36 PM
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