Does the elephant need a superjumbo?

Mumbai: Since Airbus A380 entered service, the aviation environment has changed dramatically for the worse. Operational costs, led by fuel prices, have multiplied. World aviation is now seeing some of its toughest times yet. To make matters worse, a financial gloom has descended over the world. In India, as yet Kingfisher Airlines’ order for five of these birds remains on schedule — even though the airline has pushed back deliveries of the long-haul A340 aircraft.
Praful Patel, the union civil aviation minister, welcomed the aircraft in Hyderabad and interestingly enough, wished that Air India too will buy some.
John J Leahy, chief operating officer-customers, Airbus, was not one to miss the chance and made a sales pitch to Air India following Patel’s comment. “We think the A380 is the ideal aircraft for a market like India with a huge population,” he said.
But is it? Aviation industry experts say that for the A380 to find more takers here, the market would have to develop a strong hub, on the lines of Dubai or Singapore, where traffic from various parts would come in and get distributed. The challenge, they say, is in making sure that the 500+ seats (in a conservative two/three class configuration — in all-economy, this aircraft can fly up to 852 passengers!) can be filled
Mark Martin, an aviation analyst with consultancy firm KPMG, told DNA Money, “The success of an aircraft like the A380 would depend on the economics and the economy. In India, it is not so much the airport adaptability issues which were talked about earlier as much as the viability in being able to fill a decent number of seats, which is what should dictate the decision for airlines.”
Boeing believes that the future would be more about connecting more destinations, or in aviation parlance, point-to-point.
Airbus, on the other hand, believes in the hub and spoke model, where all traffic will flow through large hubs. Analysts say the potential depends on the way the market develops.
29/10/08 Nirmal John/Daily News & Analysis

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Categories: Foreign Oct 2008, Indian Aviation- In General Oct 2008, New Oct 2008