Expansion of Aircraft Fleet Report - Michele Pang

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United Global Air:
Expansion of Aircraft Fleet
Report
Writers:
Omar Sandoval
Edgar Gonzalez
Michele Pang
Phillip Smith
November 17th, 2014
Table of Contents
Illustrations .................................................................................................................................................... i
Abstract ........................................................................................................................................................ ii
Final Report ................................................................................................................................................. 1
Introduction…………………………………………………………………………………………………………………………….1
Topics of Discussion………………………………………………………....…………………………………………………..2
Efficiency……………………………………………………………………………………………………………………2
Cost……………………………………………………………………………………………………………………………..5
Maintenance……………………………………………………………………………………………………………..8
Features……………………………………………………………………………………………………………………10
Conclusion…………………………………………………………………………………………………………………………………………13
Appendix A…………………………………………………………………………………………………………………..…….…………….15
Appendix B…………………………………………………………………………………………………………………………….………....16
Appendix C………………………………………………………………………………………………………………………………………..17
Glossary………………………………………………………………………………………………………………………………………………18
Works Cited……………………………………………………………………………………………………………………………………….21
List of Illustrations
Figures
Figure 1.1 Boeing 787-9 Dreamliner..………………………………….………………..…………………..2
Figure 1.2 Airbus 350-900 XMB……………………………………………………………………………2
Figure 2 GE Engine for 787-9……………………………………………………………………………...3
Figure 3 Rolls Royce Trent Engine…………………………………………………...…………….………4
Figure 4 Dreamliner Pricing…........................................................................................................................................5
Figure 5 Dreamliner Battery after fire………………………………………………………………………6
Figure 6 787-9 Dreamliner Composure……………………………………………………………………..8
Figure 7 Airbus plane in maintenance ……………………………………………………………………..10
Figure 8 787-9 Passenger Cabin............................................................................................................................…...10
Figure 9 Advanced Cabin features displayed for the Airbus A350………………………………...……….12
Figure 10 Airbus A350-900 Business Class………………………………………………………………13
i
Abstract
“United Global Air:
Expansion of Aircraft Fleet Report”
Prepared by:
Omar Sandoval
Edgar Gonzalez
Michele Pang
Phillip Smith
The company is faced with a problem regarding old aircraft that is still in use. This aircraft is now
outdated and is no longer as efficient and desired as it used to be. Due to the normal wear and tear
and high mileage of our current fleet of aircrafts, our maintenance cost has been consistently
increasing. This is severely impacting our company’s profit margin. Our group has established this
proposal to create a solution for this ongoing problem. A report has been created comparing various
company and the top two commercial passenger aircrafts that fit the needs of United Global Airlines
(UGA) have been investigated. In this report we will analyze and compare the specifications of both
planes, and what they each have to offer to UGA. The chosen aircraft will be based on factors
including but to fuel cost, maintenance cost, and cabin space and airplane features. A final decision
will be made for the optimum aircraft and the report will be presented to the Board of Executives
for final review.
ii
Final Report
Introduction
Optimizing profit is one of the company’s top priorities along with
customer safety and satisfaction. In the recent years these standards have
fallen because of the underperforming aircraft fleet we are currently using.
Our aircraft fleet is boosting the costs of maintenance upkeep while they
are falling in rank of efficiency due to new models of planes being
developed. This problem results in a deficit downward spiral of both
revenue and efficiency. If it is not fixed soon, this problem will cause a
rapid downfall in the profit margin, company stock value, and customer
satisfaction. In this report we offer a solution to this problem with
descriptive and informative data on the top aircraft we have chosen. The
top two aircraft under investigation are the Boeing Dreamliner 787-9 (fig
1.1) and the Airbus A350-900 extra wide body (XWB) (see fig. 1.2).
1
Boeing Dreamliner 787-9
Airbus 350-900 XWB
Topics of Discussion
The topics chosen for review have been researched carefully by every
member in our group. These topics where chosen because they fit the
company needs. The aircrafts will be compared simultaneously in a side by
side comparison under each topic. A conclusion will end the investigation
of the planes with a front-runner selection ready to be taken into
consideration by the Board of Executives.
o Efficiency
The Dreamliner 787-9 will be leaner on the fuel consumption compared to
the current aircraft fleet we presently have. These new jets have a lighter
gross weight due to the increased use of more carbon-fiber parts replacing
previously metal parts. In doing so this also adds strength to the aircraft's
2
overall structural integrity. The Dreamliner can be fitted with fuel efficient
and quieter engines such as the GEnx engines from General Electric (787)
(see fig. 2). With features
on these engines such as
having ½ as many
moving parts yet more
compression/thrust as
our current engines, as
much as 23:1, less fuel is
burned. Also, the new
Figure 2 GE Engine for 787-9
engines will have turbine fan blades made of a ceramic composite material.
Ceramic can endure temperatures up to 2102 degrees Fahrenheit. The
altered wingtips to imitate an Eagles wing also increase the gliding and
cruising ability of the aircraft." According to the website Findthebest.com,
it will allow the aircraft to “…Fly to Los Angeles - LAX (2144.6 nautical
miles away), using 25.2% of its maximum range.” from JFK. That is over
10% more than what wide-body passenger fleet can provide. Advanced
3
gearboxes to improve the thrust and consequently, fuel efficiency are
provided by elite
manufacturing companies such
as Pratt & Whitney.
The Airbus A350 is built to
compete with the rising
demands of a more fuel
efficient aircraft, According to
airbus. A Rolls Royce Trent
Figure 3 Rolls Royce Trent Engine.
XWB engine will be outfitted on the new fleet. These engines are lighter in
weight and burn fuel more efficiently. The engines will also be able to save
up to 25% more fuel per passenger than its competitors (Norris). Various
mechanical parts within the engine are being retrofitted with lighter
weighing parts made from “...Single crystal materials...” according to Guy
Norris of Aviation Week & Space Technology.
o Cost
When thinking about the most advance airplane in today’s market you have
to include about how much technology you want the aircraft to have. The
4
787-9 Boeing Dreamliner has a list price of
257.1 million dollars as shown on figure 4.
The asking price is very misleading since
various reports have stated that Boeing does
not charge the price it suggest but they
charge around $117 million(Fontevecchia).
An airline never pays the list price when
buying an airplane but given the advantages
that such airplane gives, you would think that
it would be understandable for them to
charge such price. It is estimated that to
Figure 4 Figure 4 Dreamliner
Pricing
build one of these planes it costs around $232 million (Ausick), Boeing is
losing about $115 million on each plane that sells. When the aircraft was
beginning to be flown regularly the aircraft suffered a small incident were
5
the battery caught on fire which caused a setback to the company (see
fig.5). The Federal Aviation Administration (FAA) grounded all the
airplanes in the United
Sates that luckily
Boeing was able to
resolve as soon as
possible by fixing the
battery problem which
the FAA gave them
Figure 5 Dreamliner Battery after fire.
the green light to continue operating their aircraft. After the fire incident it
Boeing had to make a comeback since the 787-9 was becoming unwanted
with all the negative news. Boeing then had a reason to lower their costs on
the Dreamliner so it would attract future clients (Fontevecchia). Since their
small incident they have gotten better and have improve the Dreamliner
battery so they won’t have similar problems in the future. Airbus which is
very competitive to Boeing has to offer the Airbus A350-900 XWB (Extra
Wide Body) with a list price of $295.2 million (“News”). Airbus promise
that the payment will be well invested since in the long-term “the plane will
6
fly further for less, to help offset the high cost of buying the aircraft”
(Glennie). This means that by investing in this aircraft, the price will
decrease since the aircraft is fuel efficient it helps offset the cost in the
future since flying will become cheaper. The airbus which began flying in
2013 two years after the Boeing Dreamliner was made available to fly had
been received well by the consumer and by the airlines company, unlike the
Dreamliner the Airbus has not experienced any problems but they have
also not been flown for longer period like the Dreamliner has had. Airbus
has made it clear that they are very confident in their aircraft and it will live
up to its standards. This is the perfect time to invest in the Dreamliner
since they has demonstrated to be the best airplanes in the market at a
discounted rate and have also have been very fats in the problems the
aircraft had endured in its short life. Airbus has stated that their aircraft will
provide a better profit in the long term eve tough not many aircrafts are
been flown as of right know. At a long term companies like Delta, United
Continental and Southwest will invest on these two companies which can
cause a price hike so right know would be the best time to invest on one of
these aircrafts.
7
 Maintenance
Since our goal is to have a fleet of aircrafts that can carry the job in a long
term solution, so we can avoid having to replace our future aircraft we have
to find the best plane that can carry that job. In order to do this we made
extensively research on both the Dreamliner 787-9 and the Airbus 350-900
XMB. The Airbus which is made of carbon composites, titanium and other
materiel that not only are friendly to the environment but are more durable
has stated that they offer a lower airframe maintenance cost than the
Figure 6 787-9 Dreamliner Composure
8
Boeing Dreamliner (Miller) see fig. 6. Parts for the new aircraft are being
made to be accessible with ease in case of needed repairs. Both selections
of planes tackle the problem of maintenance duration and cost very easily.
Though they both show great qualities, Airbus claims to have a much
better plan for maintenance than Boeing does. Airbus has set a plan to be
checked with an interval system see fig.6. 53% of the A350-900’s frame
consists of a very durable carbon fiber reinforced plastic, along with
another 14% of it that is titanium. This allows Airbus to extend their
current checkup of 6 years on the A330 aircraft from 6 to 12 years on the
A350 because of the material longevity. During this 12 year checkups they
schedule small inspections at 36 month cycles. This extension in the
intervals has freed up an annual amount of 4,700 hours to use for normal
flight instead of being grounded. The A350 is also said to include a number
of new programs to regulate and inspect itself for any faults in the
infrastructure and flight systems (Seidenman). Boeings Dreamliner also
offers a majority of its structure made of carbon fiber but no maintenance
plans have been released. Though the plans are not set yet, it is expected
that they are similar to Airbus’ due to their similar infrastructure (see fig. 7).
9
Figure 7 Airbus plane under major maintenance.
 Features
The Dreamliner will have an
advanced air circulation system that
refreshes the cabin with new air
every few minutes, via gaseous
vapor exchanges. (Only) The cabin
Fig. 8 Improved seating in the 787-9 area will be able to be arranged into
Dreamliner.
many seating configurations, depending on the airlines specifications.
Better Wi-Fi accessibility, and ambient lights add to the passengers
experience within flight and the use of In Flight Entertainment (IFE)
system. Airline companies such as Virgin have already purchased these
aircraft and even have one named “Birthday Girl”. Birthday Girl’s cabin is
equipped with “The biggest windows of any commercial aircraft, dimmable
10
at the touch of a button. A brighter cabin equipped with mood lighting and
more overhead space is one of the many new features in the new passenger
cabins of the Dreamliner 787-9 (fig.9). The aircraft is 224 feet long with a
comfortable seating capacity of up to 290 passengers. It can carry over 10%
more passengers than its predecessor aircrafts, the 787-8 Dreamliner
(Boeing). The cabin design also allows for larger windows, more spacious
appearance and even twin aisles in the cabin. The advanced design in the
engines as well as the use of more carbon fiber has also aided in the
reduction of engine and turbulence noise. That dramatically reduces cabin
noise pollution and improves overall flight experience among the
passengers.
While the Dreamliner has many features for the customer, Airbus’
A350 offers a variety of improvements in the passenger cabins. Many of
the features the A350 has are also available on the 787 but there are some
like IPod connections, moveable chairs, window darkeners, and a CD
player. The Cabin inside the Airbus A350-900 display near-vertical walls
that also give more overhead luggage space (CNN). Airbus, boast an incabin LED illumination system that can display over 16 million mood
11
inducing lighting scenarios. Inflight
entertainment systems will be installed
under the floorboards of the aircraft,
rather than traditionally under the
passenger’s seats. More room for
Figure 9 Advanced Cabin features displayed
for the Airbus A350.
economical flights will also improve
customer satisfaction. USA Today reported that the new Airbus A350 will
also have 18 inches of seating capacity per seat to its passengers. The extra
commodities offered by the A350 are decent but they are not something
that could greatly influence the decision. Overall, both aircraft are very
similar in the passenger cabins. Both have very prestigious business classes
and comfortable spacious economy classes (see fig. 10). The factor of
features offered does not favor any side means that this factor will not be
considered with such scrutiny.
12
Figure 10 Airbus A350-900 Business class.
Conclusion
To conclude both aircrafts meaning the Boeing Dreamliner 787-9
and the Airbus 350-900 XWB have proven to be engineering marvels and
have shown what they can do in form of their technological advancements
to their manufacturer Boeing and Airbus (Basu). The completion between
these companies has been fairly close in terms of what they have to offer to
all the airlines companies.
The most important concern is how these two aircraft can help with the
growth of UGA. There are many points of discussion but the most impart
ones we believe will matter the most are fuel efficiency, cost, maintenance
and the advantages of owning one of these airplanes. The team has looked
13
closely into both aircraft with a profound analysis. Both the Airbus A350900 XMB and Boeing Dreamliner 787-9 are astounding planes that would
provide benefit to Urban Global Airlines. Unfortunately only one can be
chosen to replace our current unprofitable and withering fleet. With cost
and efficiency being two of the primary factors in the final decision, there
is a clear advantage to the Dreamliner 787-9. The Airbus offers great prices
and efficient designs but Boeing continuously showed that their model was
superior and how they take care of problems when these tend to rise. The
final choice that will be taken to the Board of Executives to update the
current aircraft fleet, is the Boeing Dreamliner 787-9 aircraft
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Appendix A
15
Appendix B
16
Appendix C
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Glossary________________________________________________
1. Ambient Light: The light surrounding an environment or subject.
2. Air circulation system: Pressurized air for the cabin in today's jetliners
comes from the compressor stages in the aircraft's jet engines.
Moving through the compressor, the outside air gets very hot as it
becomes pressurized. The portion drawn off for the passenger cabin
is first cooled by heat exchangers in the engine struts and then, after
flowing through ducting in the wing, is further cooled by the main air
conditioning units
3. Carbon Fiber: An extremely strong, thin fiber, consisting of long,
chainlike molecules of pure carbon that are made by charring
synthetic fibers such as rayon in the absence of oxygen. Carbon fibers
are used in high strength composite materials in aircraft, automobiles,
architectural structures, and in other applications where light
materials capable of withstanding high stress are required.
4. Ceramic: of or relating to the manufacture of any product (as
earthenware, porcelain, or brick) made essentially from a nonmetallic
mineral (as clay) by firing at a high temperature.
18
5. Cruising: (of a motor vehicle or aircraft) travel smoothly at a
moderate or economical speed.
6. Deficit: An excess of expenditure over revenue
7. Fuel efficiency: Fuel efficiency is a form of thermal efficiency,
meaning the efficiency of a process that converts chemical potential
energy contained in a carrier fuel into kinetic energy or work.
8. Gearbox: a set of gears with its casing, especially in a motor vehicle;
the transmission.
9. Gross Weight: The total weight of an aircraft when fully loaded
sometimes referred to as takeoff weight.
10.
General Electric GEnx: The General Electric GEnx (General
Electric Next-generation) is an advanced dual rotor, axial flow, highbypass turbofan jet engine in production by GE Aviation for the
Boeing 787 and 747-8. The GEnx is intended to replace the CF6 in
GE's product line.
11.
Nautical Miles: a unit used in measuring distances at sea, equal
to approximately 2,025 yards (1,852 m).
19
12.
Profit margin: the percentage of profit realized by a business
per dollar of sales.
13.
Rolls-Royce Trent: is a family of three spool, high bypass
turbofan aircraft engines manufactured by Rolls-Royce plc. All are
developments of the RB211 with thrust ratings of 53,000 to 95,000
pounds-force (240 to 420 kN).
14.
Turbine Fan Blades: A turbine blade is the individual
component which makes up the turbine section of a gas turbine. The
blades are responsible for extracting energy from the high
temperature, high pressure gas produced by the combustor. The
turbine blades are often the limiting component of gas turbines. To
survive in this difficult environment, turbine blades often use exotic
materials like super alloys and many different methods of cooling,
such as internal air channels, boundary layer cooling, and thermal
barrier coatings.
15.
Wi-Fi: A facility allowing computers, smartphones, or other
devices to connect to the Internet or communicate with one another
wirelessly within a particular area.
20
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