OPIM 5894 ADVANCED PROJECT MANAGEMENTAIRBUS 3XX: DEVELOPING THE WORLD’S LARGEST JET

Team 3

Richard Buskey

Vijay Gadigeppa

Jonathan Koenig

Daniel Mahzonni

Prashant Mishra

Jonathan Weiss

http://users.business.uconn.edu/snair/opim5894.html

Demand Projections

Airbus 3XX: developing the world’s Largest Commercial Jet

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A3XX planes sold per year 588 VLA Passenger Aircraft total over the

next 20 years 30 VLA Aircraft per year

Prof. Suresh Nair, University of Connecticut

Airbus 3XX: developing the world’s Largest Commercial Jet

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Group Assumptions Estimated annual growth in passenger traffic (in

the form of seats) will be ~5% Capacity is 4 planes per month All probable orders will be filled 50% of potential orders will be filled Only 747-400 have the potential to be replaced

by A3XXX Average of 905 with Airbus numbers Fixed 330 with Boeing numbers (due to lack of

data)Prof. Suresh Nair, University of Connecticut

Airbus 3XX: developing the world’s Largest Commercial Jet

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Sensitivity

Prof. Suresh Nair, University of Connecticut

Airbus 3XX: developing the world’s Largest Commercial Jet

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Variation Explanation - Assumptions Airbus

Increase in frequency of flights and new routes would not account for growing demand (e.g., people do not want to leave or arrive at 3 AM)

Asian market will account for almost half of VLA passenger fleet (with six of the top ten airports being in Asia)

New routes would not solve the problem of growth in large markets such as Asia Only 10 major new airports were scheduled to open within the

next 10 years and only 18 airports had approved plans for growth Retirements of planes is based on fleet age and composition

Prof. Suresh Nair, University of Connecticut

Airbus 3XX: developing the world’s Largest Commercial Jet

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Variation Explanation - Assumptions Boeing

More frequent point-to-point routes using medium-sized, long-range aircraft (777 or A340) would absorb growth (Southwest Airlines as business model)

4,000 regional jets (as opposed to VLAs), many of which accounted for by 9% expected growth in China “60% of the airlines that bought the 1,000 or so 747s

we’ve sold bought them for their range, not for their capacity”

747-400 would be sufficient for most airlines

Prof. Suresh Nair, University of Connecticut

Airbus 3XX: developing the world’s Largest Commercial Jet

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Questions?

Prof. Suresh Nair, University of Connecticut