Is it possible for ultra long-haul operations to be commercially viable and profitable? In “The Commercial Viability of Ultra Long-Haul Operations. – Evidence from Qantas’ Perth-London Service“, Linus Bauer is providing valuable academic evidence and finally putting an end to the ongoing debate about the viability of such operations. This publication fills the gap in the academic literature regarding ultra long-haul operations. The book has been published at GRIN Publishing in May 2019.
Between 2004 and 2013, the majority of formerly existing ultra long-haul routes were axed mainly due to higher jet fuel prices and fuel inefficient aircraft such as the Airbus A340-500. Despite negative developments in the past, current airlines still operate or intend to operate ultra long-haul routes while other airlines highly question the feasibility of cost-intensive services. By conducting a detailed market analysis and developing a revenue-cost model, Linus Bauer examines in his book “The Commercial Viability of Ultra Long-Haul Operations” possibilities and limits for airlines on the current ultra long-haul market.
New revenue-cost model allows pre-simulation of ultra long-haul operations
While there is no universally accepted definition for what is considered to be an ultra long-haul flight, the term ultra long-haul refers to flights of 14.5 hours or more. The requirements of a minimum of four cockpit crew members and a minimum layover of two nights can be used as additional features of an ultra long-haul flight. Key findings from Bauer’s comprehensive analysis conclude that ultra long-haul routes such as Perth-London Heathrow nowadays may prove to be resilient, driven by the current generation of fuel-efficient aircraft. While the cost advantages of ultra long-haul services may be slight compared to one-stop services, ultra long-haul routes are likely to make up for it in market positioning by targeting the rising premium customer segments with lower price sensitivity, one of the main drivers of the profitability of the 21st century airline business. In “The Commercial Viability of Ultra Long-Haul Operations“, Linus Bauer gives valuable insights on how the profitability of today”s ultra long-haul business can be achieved.
About the author
Linus Bauer has been working in the aviation industry since 2011. He has worked for airlines including Etihad and Singapore Airlines. He graduated from the City University of London with an MSc in Air Transport Management and was honored with a prize for his outstanding academic achievements by HH Sheikh Al Maktoum, CEO of Emirates. Bauer is currently working as an aviation consultant.
The book has been released at GRIN Publishing in May 2019 (ISBN)
Direct link: https://www.grin.com/document/469332/
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Keywords:ultra long-haul flight, market analysis, airline business, Qantas, Singapore Airlines, airline strategy