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 14 Appendix A 15 Appendix B 16 Appendix C 17 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. 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