World Commercial Aircraft Capacity & Growth

SUMMARY

Record Orders for New Aircraft to Boost Fleet Expansion

Due to increasing passenger traffic and the liberalisation of international services, the world airline market is investing in fleet expansion to increase seating capacity and offer improved efficiency. Accordingly, Airbus and Boeing have received record orders for new airplanes in 2005 from airlines all over the world, which have almost doubled their total orders. Such large orders indicate a rapid increase in seat capacity in the near future. A significant number of deliveries however, will be utilised for fleet renewal as many airplanes are in need of replacement. Approximately 42 per cent of the deliveries between 2006 and 2010 will be dedicated to fleet modernisation, which will result in increased efficiency and safety that will bring next-generation airplanes.

The Frost & Sullivan research service examines the global airline market, segmenting it into single-aisle, twin-aisle and very large jets. The study analyses major industry challenges, market drivers and restraints as well as potential threats faced by market participants along with a comprehensive analysis of the market.

Fleet Modernisation to Assist Cost Reduction and Increase Efficiencies

While growing passenger air traffic drives the world airline market, increasing competitiveness and soaring fuel prices are affecting the profitability of airlines. The worldwide emergence of low-cost carriers challenges traditional airlines and this situation is escalated by increasing customer awareness of the product-value relation triggered by the cost effectiveness of low-cost airlines.

"High pressure on cost-savings reinforces the need for fleet renewal that will enable airlines to reduce their operating expenses, particularly on fuel as new-generation aircraft can improve efficiency by up to 30 per cent", remarks the analyst of the research service. "Early fleet renewal will assist airlines in creating cost efficiencies, thus enabling them to remain competitive." Additionally, airlines are heading towards larger participation of leased aircraft in their fleets, which will help forge closer relationships between leasing companies and airlines, thus resulting in long-term partnerships.

Economical Business Models Required to Increase Revenues in the Global Airline Market

Single-aisle jets, which are utilised for regional and domestic short-haul flights, dominate the air traffic in most countries. Hub-and-spoke networks of international air traffic are also likely to continue accelerating the need for small-sized airplanes. Additionally, growing emphasis on international mobility is expected to boost demand for twin-aisle airplanes, which are used on long-haul international and inter-continental routes. In comparison, very large jets will be used only between major international hubs in Asia Pacific, Europe and North America.

With airlines eager to reduce costs and offer improved efficiency, adopting viable business models will be pivotal to increasing revenue potential and combating reducing profit margins. Passengers are becoming increasingly price-sensitive and traditional airlines will be compelled to focus on creating efficiencies and reducing costs to compete with low-cost carriers. "Hence, all airlines should develop a strategy to restructure their fleets, adopt efficient fleet management and operate new aircraft to lower maintenance and fuel costs", remarks the analyst.

TABLE OF CONTENTS

• 1. Executive Summary
  • 1. Summary
    • 1. Overview
• 2. Introduction
  • 1. Introduction to the Research Service
    • 1. Research Service Scope
• 3. Airline Market Specifics and Current Trends
  • 1. Introduction to the Research Service
    • 1. Introduction
    • 2. Fleet Replacement
    • 3. Increased Safety and Noise Reduction
    • 4. Increasing Role of Leasing Companies
    • 5. More Demanding Passengers
    • 6. Increased Efficiency in Airport Management
    • 7. Airlines Consolidation
    • 8. Low Cost Airlines Development
• 4. World Fleet Development
  • 1. World Current Fleet
    • 1. Overview
    • 2. North America
    • 3. Europe
    • 4. Asia Pacific
    • 5. Middle East
    • 6. Africa and Latin America
  • 2. World Fleet Division by Aircraft Size
    • 1. Overview
  • 3. World Current Aircraft Orders
    • 1. Breakdown by Region
    • 2. Breakdown by Platform
  • 4. World Seat Capacity
    • 1. Existing Capacity
    • 2. Additional Future Capacity
  • 5. World Fleet Growth
    • 1. Fleet General Growth
    • 2. Single-Aisle Fleet Growth
    • 3. Twin-Aisle Fleet Growth
    • 4. Very Large Jets Fleet Growth
• 5. Regional Analysis
  • 1. Europe
    • 1. Existing Fleet and Current Orders
    • 2. Existing and Future Additional Seat Capacity
    • 3. Fleet Growth
    • 4. Single-Aisle Fleet Growth
    • 5. Twin-Aisle Fleet Growth
    • 6. Very Large Jets Fleet Growth
  • 2. North America
    • 1. Existing Fleet and Current Orders
    • 2. Existing and Future Additional Seat Capacity
    • 3. Fleet Growth
    • 4. Single-Aisle Fleet Growth
    • 5. Twin-Aisle Fleet Growth
    • 6. Very Large Jets Fleet Growth
  • 3. Latin America
    • 1. Existing Fleet and Current Orders
    • 2. Existing and Future Additional Seat Capacity
    • 3. Fleet Growth
    • 4. Single-Aisle Fleet Growth
    • 5. Twin-Aisle Fleet Growth
    • 6. Large Jets Fleet Growth
  • 4. Middle East
    • 1. Existing Fleet and Current Orders
    • 2. Existing and Future Additional Seat Capacity
    • 3. Fleet Growth
    • 4. Single-Aisle Fleet Growth
    • 5. Twin-Aisle Fleet Growth
    • 6. Very Large Jets Fleet Growth
  • 5. Asia Pacific
    • 1. Existing Fleet and Current Orders
    • 2. Existing and Future Additional Seat Capacity
    • 3. Fleet Growth
    • 4. Single-Aisle Fleet Growth
    • 5. Twin-Aisle Fleet Growth
    • 6. Very Large Jets Fleet Growth
  • 6. Africa
    • 1. Existing Fleet and Current Orders
    • 2. Existing and Future Additional Seat Capacity
    • 3. Fleet Growth
    • 4. Single-Aisle Fleet Growth
    • 5. Twin-Aisle Fleet Growth
    • 6. Very Large Jets Fleet Growth
• 6. Airbus versus Boeing
  • 1. World Fleet
    • 1. Airbus versus Boeing Existing Fleet and Current Orders
    • 2. Airbus versus Boeing Existing Fleet and Current Orders from Regional Perspective
    • 3. Airbus Fleet
    • 4. Boeing Fleet
    • 5. Airbus Current Orders
    • 6. Boeing Current Orders
• 7. Frost & Sullivan Awards for Global Commercial Aircraft Capacity and Growth
  • 1. Fleet Development Awards 2006
    • 1. Award Description
    • 2. Research Methodology
    • 3. Measurement Criteria
    • 4. World Major Carrier
    • 5. World Low-Cost Carrier
    • 6. Europe
    • 7. North America
    • 8. Latin America
    • 9. Asia Pacific
    • 10. Middle East
    • 11. Africa
  • 2. Fleet Optimisation Award 2006
    • 1. Award Description
    • 2. Research Methodology
    • 3. Measurement Criteria
    • 4. Fleet Optimisation Award