AVIA essay 5
Meyers Kevin
AVIA 110
Inst. Paul Vandette
February 9, 2015
Essay 5
There are many things that influence the orders of aircraft orders and deliveries. It can be summed up in one word, economics. World and domestic business push the industry for aircraft orders in different ways. Passenger travel is what most people think of when they think of air travel. Another side is air freight and the ability move commodities has influenced future outlooks. Also, with the senior fleet, companies are trying to replace their aging, out of production aircraft. Manufacturers use old forecasts, analyses those forecasts and compares them to those of commercial aviation, in order to determine future market outlook. With Boeing and Airbus delivering about 2000 aircraft a year, it is still not enough to keep up with the backlog of orders.
Boeing has projected a 3.2% Airline growth in the next 20 years. Driven by that growth, a 5% annual increase in passenger traffic along with a 5% increase in air freight traffic. Boeing believes that the industry will need 35000 new aircraft by 2032. About a third of that will be to replace aging fleet. These numbers only indicate that the skies will only get busier.
Maurice J. Gallagher, Jr., CEO Allegiant Travel Co.: "The next five years will be all about increasing automation and decreasing labor cost. The industry is already implementing mobile boarding passes, bag drops, even self-boarding. These processes will become more prevalent and significantly reduce the number of employees the customer needs to interact with."
Basically a manufacturing company’s order backlog shows what the company has in store for the near future. It’s basically indicates future income. It takes into account the work the company will complete. The order backlog is also very important because investors use it to judge the demand for a company’s product. Even though the company has a strong order book, the decreasing trend creates concerns.
Commercial carrier
AVIA 110
Inst. Paul Vandette
February 9, 2015
Essay 5
There are many things that influence the orders of aircraft orders and deliveries. It can be summed up in one word, economics. World and domestic business push the industry for aircraft orders in different ways. Passenger travel is what most people think of when they think of air travel. Another side is air freight and the ability move commodities has influenced future outlooks. Also, with the senior fleet, companies are trying to replace their aging, out of production aircraft. Manufacturers use old forecasts, analyses those forecasts and compares them to those of commercial aviation, in order to determine future market outlook. With Boeing and Airbus delivering about 2000 aircraft a year, it is still not enough to keep up with the backlog of orders.
Boeing has projected a 3.2% Airline growth in the next 20 years. Driven by that growth, a 5% annual increase in passenger traffic along with a 5% increase in air freight traffic. Boeing believes that the industry will need 35000 new aircraft by 2032. About a third of that will be to replace aging fleet. These numbers only indicate that the skies will only get busier.
Maurice J. Gallagher, Jr., CEO Allegiant Travel Co.: "The next five years will be all about increasing automation and decreasing labor cost. The industry is already implementing mobile boarding passes, bag drops, even self-boarding. These processes will become more prevalent and significantly reduce the number of employees the customer needs to interact with."
Basically a manufacturing company’s order backlog shows what the company has in store for the near future. It’s basically indicates future income. It takes into account the work the company will complete. The order backlog is also very important because investors use it to judge the demand for a company’s product. Even though the company has a strong order book, the decreasing trend creates concerns.
Commercial carrier