MIT ICATMIT ICAT

Airline Industry Recent Trend Update (October 2006)

Prof. R. John HansmanProf. R. John Hansman

With the help of the Faculty and Students of the MIT Global With the help of the Faculty and Students of the MIT Global Industry StudyIndustry Study

rjhans@mit.edurjhans@mit.eduTraffic Source: Sage Analysis courtesy Prof Ian Waitz

MIT ICATMIT ICAT RPK by Region

Scheduled Revenue Passenger-Kilometers by Region

0

200

400

600

800

1000

1200

1400

1970 1980 1990 2000 2010

RPK

(bill

ion)

North America

Europe

Asia andPacificLatin America& CaribbeanMiddle East

Africa

Data source: ICAO, scheduled services of commercial air carriers

MIT ICATMIT ICAT Freight Trends by Region

Freight Tonne-Kilometers by Region

0

10

20

30

40

50

60

1970 1980 1990 2000 2010

FTK

(bill

ion)

North America

Europe

Asia andPacificLatin America& CaribbeanMiddle East

Africa

Data source: ICAO, scheduled services of commercial air carriers

MIT ICATMIT ICAT U.S. Domestic RPMs

20

25

30

35

40

45

50

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Bill

ions

2000 2001 2002 2003 2004 2005 2006

Source: ATA Monthly Passenger Traffic ReportData source: ATA, US member airlines, scheduled mainline service

MIT ICATMIT ICAT

U.S. Domestic Average Load Factor

45.0%

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%19

70

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

Data source: ATA, US member airlines, scheduled mainline service (average of first 9 months for 2006)

MIT ICATMIT ICAT U.S. Domestic ASMs and RPMs

-

100

200

300

400

500

600

700

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

Bill

ions ASMs

RPMs

Data source: ATA, US member airlines, scheduled mainline service (projection based on first 9 months for 2006)

MIT ICATMIT ICAT U.S. Domestic Load Factors

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2000 2001 2002 2003 2004 2005 2006

Source: ATA Monthly Passenger Traffic ReportData source: ATA, US member airlines, scheduled mainline service

MIT ICATMIT ICAT U.S. Average Domestic Yield

10.00

11.00

12.00

13.00

14.00

15.00

16.00

Yiel

d (c

ents

/mile

)

2000 2001 2002 2003 2004 2005 2006

Data source: ATA Monthly Passenger Revenue Report, 7 US major airlines excluding Southwest (WN).

MIT ICATMIT ICAT

0.65%

0.70%

0.75%

0.80%

0.85%

0.90%

0.95%

1.00%

1.05%

80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07

Spending on Air Travel Has Fallen as % of U.S. Economy

Recent Quarters’ Modest Recovery Still $28B Short of Historical Norm

Historical Band

*Four-quarter rolling passenger revenue derived from government filings of U.S. passenger airlines

Syst

emw

ide

Pass

enge

r Rev

enue

as

% o

f Nom

inal

GD

P*

≅ $28B

Sources: ATA, ATA Passenger Airline Cost Index; Bureau of Economic Analysis; U.S. Department of Transportation

MIT ICATMIT ICAT

Historic Yield Trend1995-2006

6

7

8

9

10

11

12

13

14

15

16

Jan-

99

Jul-9

9

Jan-

00

Jul-0

0

Jan-

01

Jul-0

1

Jan-

02

Jul-0

2

Jan-

03

Jul-0

3

Jan-

04

Jul-0

4

2-Ja

n

2-Ju

l

3-Ja

n

3-Ju

l

4-Ja

n

4-Ju

l

5-Ja

n

5-Ju

l

6-Ja

n

6-Ju

l

Janu

ary

July

Yiel

d (c

/mile

)

2000 2001 2002 2003 2004 2005 20061995 1996 1997 1998 1999

Latin

Domestic

Pacific

Atlantic

Data source: ATA Passenger Yield Report, 7 US major airlines excluding Southwest (WN).

MIT ICATMIT ICAT

$(2,500)

$(2,100)

$(1,700)

$(1,300)

$(900)

$(500)

$(100)

$300

2000Q1 2000Q3 2001Q1 2001Q3 2002Q1 2002Q3 2003Q1 2003Q3 2004Q1 2004Q3 2005Q1

Net

Inco

me

(Los

s)

in

mill

ions

AmericanUnitedDeltaNorthwestContinentalSouthwestJetBlueAmerica WestAlaskaATAUS Airways

Airline Profits

9/11 Attacks

-17B

+23B

Data source: Airline quarterly reports, profits and losses including reorganization items including reorganization items

including reorganization items

MIT ICATMIT ICAT

Cargo Operations Remain Profitable

$0

$400

$800

$1,200

$1,600

2000Q1 2000Q3 2001Q1 2001Q3 2002Q1 2002Q3 2003Q1 2003Q3 2004Q1 2004Q3

Net

Inco

me

in m

illio

ns

UPS FedEx

9/11 Attacks

SARSIraq War

West CoastDock Strike

Data source: Companies’ annual reports

MIT ICATMIT ICAT

Market Cap: US Majors, 20-October-2006

Mesa Air0.8%

Frontier Airlines0.8%

Delta Air Lines0.7%

Pinnacle0.5% Midwest Airlines

0.4%

Mesa Air Group, Inc.0.8%

Republic Airways1.8%

Skywest4.5%

AirTran Airways2.6%

Alaska Airlines4.9%

Continental Airlines8.0%

US Airways9.6%

United Air Lines9.6%

American Airlines15.3%

JetBlue Airways5.1%

Southwest Airlines34.4%

Northwest Airlines0.2%

Total Market Cap: $36.6 billionTotal Market Cap: $36.6 billion

Data source: Yahoo Finance.

MIT ICATMIT ICAT

Market Cap: US Majors, 26-May-2005

Pinnacle1.0%

Mesa Air0.9%

United Air Lines0.6%

American West Airlines0.9%

US Airways0.2%

Midwest Airlines0.2%

Midway0.0%

Republic Airways2.0%

Delta Air Lines2.6%

Frontier Airlines2.1%

Northwest Airlines2.2%

Alaska Airlines3.7%

Continental Airlines4.2%

AirTran Airways4.1%

American Airlines9.9%

JetBlue Airways10.9%

Southwest Airlines54.3%

Atlantic Coast Airlines0.2%

Total Market Cap: $21.2 billionTotal Market Cap: $21.2 billion

Data source: Yahoo Finance.

MIT ICATMIT ICAT

Current Market Cap vs. RPM ShareUS Majors (RPMs: July 2006 / Market Cap:

October 20th 2006)

Source: Yahoo! Finance and Bureau of Transportation Statistics

MIT ICATMIT ICAT

US Airline Net Profit Model Best Fit of Undamped Oscillation

Cycle Period = 11.3 yr eFolding Time = 7.9 yr

-20

-15

-10

-5

0

5

10

15

20

25

30

78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12

Bill

ions

Net P

rofit

($)

* American Airlines, Delta Airlines, United Airlines, Northwest, Continental, Southwest, JetBlue, America West, Alaska.** The projection for the full year is computed as 2 times the loss for Q1 & Q2 combined

Estimates from 9 airlines* for Q1 & Q2 2006 and projection** for full year

Data from ATA (www.airlines.org)

Data from airline financial quarterly reports

Projection

MIT ICATMIT ICAT

US Airline Net Profit Model Apparent 1 year phase advance in cycle

-20

-15

-10

-5

0

5

10

15

20

25

30

78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12

Bill

ions

Net

Pro

fit ($

)

* American Airlines, Delta Airlines, United Airlines, Northwest, Continental, Southwest, JetBlue, America West, Alaska.** The projection for the full year is computed as 2 times the profits for Q1 & Q2 combined

Estimates from 9 airlines* for Q1 & Q2 2006 and projection** for full year

Data from ATA (www.airlines.org)

Data from airline financial quarterly reports

Projection

MIT ICATMIT ICAT

Low-Cost Carrier Envy Emergence of LCCs

Source: http://www.etn.nl/lcostair.htm, airline news

Africa (2)1TimeKulula

Europe (60, 3 in 2004)Aer Arann Baboo Fare4U Sun Express Air 2000 Basiq Air German Wings SwedlineAir Baltic Bexx Air Germania Express ThomsonFlyAir Berlin BMI Baby Globespan V BirdAir Finland British European Hapag Lloyd Express Virgin Express Air Luxor Lite BudgetAir Hellas Jet VLM AirlinesAir Polonia Corendon Helvetic Airways VolareWeb Air Scotland Deutsche BA Iceland Express Windjet VolaAir Southwest EasyJet Ryanair Smart WingsAir Wales Evolavia Snalskjutsen Wizz AirAlpi Eagles Excel Airways SnowFlake Airlines HopAzzurra Air Fairline Austria Sterling

Asia/Pacific (20, 8 in 2004)Air Arabia ValuAirAir Asia Virgin Blue Air Deccan Air BlueAthena Air Services Air OneCitilink BackpackersXpressFreedom Air JetstarLion Airways Nok AirOne-Two-Go Pacific BlueSkymark Airlines SkyAsiaSkynet Asia Airways Tiger Airways

Spring

South America (3)BraGolU Air

Canada (7, 1 in 2004)CanJet WestjetHMY Airways ZipJetsGo Airlines Canada WestTango Airlines

USA (19, 4 in 2003/2004)AirTran Spirit AirlinesAllegiant Air Song American West Sun Country AirlinesATA USA 3000 AirlinesFrontier Airlines Vacation ExpressInterstate Jet TedJetBlue Airways Independence AirMidwest Express Virgin USAPan AmericanSoutheast AirlinesSouthwest Airlines

Hi FlyFly MeFly NordicAir Service +Blue1Blue Air

Central WingsDau AirIceland Express

Inter SkyJet 2LTUMeridiana

MonarchMy AirScand JetTransaviaVueling

Aero AsiaAwair

Bangkok AirOrigin Pacific

Spice Jet

Inter continental LCCsAir MadridCondorEast JetLTUMartinairZoom Airlines

Jazeera AirwaysKingfisher

Legend:

New in 2003 / 2004

New in 2005 / 2006

MIT ICATMIT ICAT

Low-Cost Carrier Envy (or not)Emergence of LCCs

Source: http://www.etn.nl/lcostair.htm, airline news

Africa (2)1TimeKulula

Europe (60, 3 in 2004)Aer Arann Baboo Fare4U Sun Express Air 2000 Basiq Air German Wings SwedlineAir Baltic Bexx Air Germania Express ThomsonFlyAir Berlin BMI Baby Globespan V BirdAir Finland British European Hapag Lloyd Express Virgin Express Air Luxor Lite BudgetAir Hellas Jet VLM AirlinesAir Polonia Corendon Helvetic Airways VolareWeb Air Scotland Deutsche BA Iceland Express Windjet VolaAir Southwest EasyJet Ryanair Smart WingsAir Wales Evolavia Snalskjutsen Wizz AirAlpi Eagles Excel Airways SnowFlake Airlines HopAzzurra Air Fairline Austria Sterling

Asia/Pacific (20, 8 in 2004)Air Arabia ValuAirAir Asia Virgin Blue Air Deccan Air BlueAthena Air Services Air OneCitilink BackpackersXpressFreedom Air JetstarLion Airways Nok AirOne-Two-Go Pacific BlueSkymark Airlines SkyAsiaSkynet Asia Airways Tiger Airways

Spring

South America (3)BraGolU Air

Canada (7, 1 in 2004)CanJet WestjetHMY Airways ZipJetsGo Airlines Canada WestTango Airlines

USA (19, 4 in 2003/2004)AirTran Spirit AirlinesAllegiant Air Song American West Sun Country AirlinesATA USA 3000 AirlinesFrontier Airlines Vacation ExpressInterstate Jet TedJetBlue Airways Independence AirMidwest Express Virgin USAPan AmericanSoutheast AirlinesSouthwest Airlines

Hi FlyFly MeFly NordicAir Service +Blue1Blue Air

Central WingsDau AirIceland Express

Inter SkyJet 2LTUMeridiana

MonarchMy AirScand JetTransaviaVueling

Aero AsiaAwair

Bangkok AirOrigin Pacific

Spice Jet

Inter continental LCCsAir MadridCondorEast JetLTUMartinairZoom Airlines

Jazeera AirwaysKingfisher

Legend:

New in 2003 / 2004

New in 2005 / 2006

Not Operating

MIT ICATMIT ICAT

ConsolidationAmerica West - USAirways Merger

MIT ICATMIT ICAT Trends in Fuel Price

Average Crude Oil and Jet Fuel Prices

$0

$10

$20

$30

$40

$50

$60

$70

$80

Jan-

86

Jan-

00

Jan-

88

Jan-

89

Jan-

90

Jan-

91

Jan-

92

Jan-

93

Jan-

94

Jan-

95

Jan-

96

Jan-

97

Jan-

98

Jan-

99

Jan-

00

Jan-

01

Jan-

02

Jan-

03

Jan-

04

Jan-

05

Jan-

06

Cru

de O

il: S

pot P

rice

per B

arre

l

40¢

60¢

80¢

100¢

120¢

140¢

160¢

180¢

200¢

220¢

240¢

Jet Fuel: Price Paid per Gallon

Jet Fuel (R)

Crude Oil (L)

Data source: ATA; U.S. major, national, large regional passenger and cargo airlines; all services (last data point: 10/13/06)

MIT ICATMIT ICAT

Airline Profits Adjusted for Constant Fuel Price

-30

-20

-10

0

10

20

30

40

78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12

Billi

ons

Net

Pro

fit ($

)

US Profit (Fuel Adjusted)

US Profit Fit (Non Adjusted for fuel) Assumptions: Fuel price: 69 c/gallonAdjustment made on the basis of:-difference between actual and assumed fuel price-annual fuel consumption

Projection for full year based on Q1 & Q2 2006

MIT ICATMIT ICAT

Fuel Efficiency Through Increased Load Factor

Fuel Efficiency

20

25

30

35

40

45

50

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

Mile

s pe

r Gal

lon

Revenue Passenger Miles Available Seat Miles

Source: ATA data

MIT ICATMIT ICAT Unit Costs for Labor and Fuel

2.95

2.88

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

1Q19

90

1Q19

91

1Q19

92

1Q19

93

1Q19

94

1Q19

95

1Q19

96

1Q19

97

1Q19

98

1Q19

99

1Q20

00

1Q20

01

1Q20

02

1Q20

03

1Q20

04

1Q20

05

Uni

t Ope

ratin

g C

ost (

c pe

r ava

ilabl

e se

at m

ile)

LaborFuel

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 20051990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 20051990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Data source: ATA U.S. Airline Cost Index, 3rd Quarter 2005.

MIT ICATMIT ICAT

Productivity Improvements Driving Cost ReliefNetwork Restructuring, Work Rules, Human Capital,

Outsourcing, Technology

1,500

1,700

1,900

2,100

2,300

2,500

2,700

1Q19

90

1Q19

91

1Q19

92

1Q19

93

1Q19

94

1Q19

95

1Q19

96

1Q19

97

1Q19

98

1Q19

99

1Q20

00

1Q20

01

1Q20

02

1Q20

03

1Q20

04

1Q20

05

ASM

s (0

00) p

er F

TE

Source: ATA US Airline Cost Index: Major & National Passenger Carriers, Q3 2005

MIT ICATMIT ICAT

Employees Full Time: US Network Carriers 2001-2005

US Network Carrier Employees

0

20,000

40,000

60,000

80,000

100,000

120,000

2001 2002 2003 2004 2005

Empl

oyee

s (F

ull T

ime) American

United

Delta

Northw est

Continental

US Airw ays

Alaska

Source: US DOT

MIT ICATMIT ICAT

Employees Full Time: Low Cost Carriers 2001-2005

Low-Cost Carrier Employees

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2001 2002 2003 2004 2005

Empl

oyee

s (F

ull T

ime)

Southw est

America West

JetBlue

AirTran

ATA

Frontier

IndependenceAirSpirit

Source: US DOT

MIT ICATMIT ICAT Retirement Plan Terminations

Summary of US and United Plan Terminations

($ in billions)

US Airways

United Airlines

Total Termination Liability $7.9 $16.8

Assets $2.9 $7.0

Unfunded Termination Liability $5.0 $9.8

PBGC Guaranteed Portion of Underfunding $2.9 $6.6

Value of Lost Benefits $2.1 $3.2

Lost Benefits as % of Total Term. Liability 26.58% 19.05%

Delta and NWA Chap 11 filings estimated at $16B Liability

Source: Subcommittee on Aviation Hearing on Airline Pensions: Avoiding Further Collapse, also NYT http://www.house.gov/transportation/aviation/06-22-05/06-22-05memo.html

MIT ICATMIT ICAT

MIT ICATMIT ICAT

MIT ICATMIT ICAT

Comair Accident27 - Aug - 2006

MIT ICATMIT ICAT

US Flight Delays US Flight Delays from 1995 to 2006from 1995 to 2006

National delays from 1995 to 2006

0

0.5

1

1.5

2

2.5

3

3.5

Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06

Milli

ons

Del

ays

(in m

in.)

National Delays12 per. Mov. Avg. (National Delays)

Data source: FAA Operational Network (OPSNET)

MIT ICATMIT ICAT

US Flight DelaysUS Flight Delaysfrom 2000 to 2006from 2000 to 2006

National Delays (in minutes)

0

0.5

1

1.5

2

2.5

3

3.5

Jan

Feb Mar Apr

May Jun Ju

l

Aug Sep Oct

Nov Dec

Milli

onD

elay

s (in

min

.)

20062005

2004200320022001

2000

Source: FAA OPSNET data

MIT ICATMIT ICAT

New Delay CauseTSA Power Failure’s

LGA 7/16/06

Hawaii 10/15/06

MIT ICATMIT ICAT

Aviation Remains Perceived TargetExpanding Security Burden

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NO LIQUIDS OR GELS OF ANY KIND WILL BE PERMITTED IN CARRY-ON BAGGAGE. THESE ITEMS MUST BE IN CHECKED BAGGAGE. This includes all beverages, shampoo, suntan lotion, creams, tooth paste, hair gel, and other items of

similar consistency. Read our Permitted and Prohibited Items list

for more information.

MIT ICATMIT ICAT

Flight Cancellationsfrom 1990 to 2006from 1990 to 2006

0

50

100

150

200

250

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Thou

sand

sC

ance

llatio

ns

Projection based on first 6 months of 2006

Source: DOT, Air Travel Consumer Report, http://airconsumer.ost.dot.gov/

MIT ICATMIT ICAT Consumer Complaints

Note: Consumer Complaint Data 1998-2006, OPSNET Data

Air Traffic Controller Staffing

ATO Hiring Forecast vs. Losses

Time to CPC (Certified Professional Controller)Terminal; 8 - 24 monthsEnroute: 36 - 60 Source: Air Traffic Controller Workforce Plan - 2004

MIT ICATMIT ICAT

Projected % Developmental Controllers

From: ATCS Workforce Plan Briefing

MIT ICATMIT ICAT

Controller ContractCongressional 60 day response period ended June 5, 2006

MIT ICATMIT ICAT OEP and NGATS

10 Year PlanFAA

20 Year PlanMulti-AgencyFAA, DOD, CommerceDHS, NASA, DOT, OSTP

MIT ICATMIT ICAT FAA Reauthorization ‘07

FAA Reauthorization bill: deadline Sept. 30, 2007

Funding Modernization (NGATS)

Contributions from the general fund

The “battle” over user fees:Airlines vs Business Aviation

MIT ICATMIT ICAT

Trends in Aircraft Size

80

100

120

140

160

180

200

220

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Ave

rage

sea

ts p

er d

epar

ture

Domestic

International

Total

Data source: Form 41 Traffic data from Bureau of Transportation Statistics (includes Regional Jets and Turboprops)

MIT ICATMIT ICAT A-380

•http://www.airbus.com/

A380 BaselineShrinkStretchER Variants

555 passengers (3 class)

14,800km/8,000nm range

Payload: 330,000lbs over 10,400km/5,600nm

Rolls-Royce Trent 900 engines or GP7200 engines

MIT ICATMIT ICAT

A380 First Flight(4/27/05)

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MIT ICATMIT ICAT A-380 Delays

SELECTED A380 MILESTONE SCHEDULES1

ORIGINAL CURRENT

First flight 12/2005 4/27/2006

First delivery to Singapore Airlines (19 a/c) Early 2006 10/2007

First delivery to Emirates Airlines (43 a/c) 10/2006 8/2008

First freighter delivery (FedEx) 2008 2010

Bad News1:

On Oct 4th Airbus announced a third delay to A380 production prompting airlines to review their orders (no cancellations yet).CEO Christian Streiff resigned after 100 days of tenure on Oct 10th.Cash-flow crisis at EADS puts the development of A350XWB (replacement of A330/A340) on hold.Financial analysts are skeptical that Airbus cost-cutting program Power8 can deliver.Lack of funds to develop the A320 replacement in the coming decade. Differences between the proposed A350XWB and the original A350 for which Airbus has contracts.

Good News2:

Airbus Wake Vortex Steering Group found that 10 nm separation for following the A380 needs to be applied only to light aircraft, with 6 nm for heavy and 8 nm for medium-sized aircraft. (Approximately breakeven on airport seat throughput)

Data source: 1Aviation Week & Space Technology 10/09/2006, 2Air Transport World Daily News 09/292006

MIT ICATMIT ICAT

A 380 Ordersaprox 159 (17 Cargo)

Singapore Airlines (10)

Lufthansa (15)

Emirates (43)

Air France (10)

Qantas (12)

Malaysia Airlines (6)

Virgin Atlantic (6)

International Lease Finance (10)

Kingfisher Airlines (5)

Qatar Airways (2)

Federal Express (10)

Korean Air (5)

Thai Airways (6)

Etihad Airways (4)

China Southern Airlines (5)

Delivery Delays (normal)9 in 2007 vs 25 plan

Wake Vortex Issue ICAO 10 Mile in trail requirement

Source: http://www.aerospace-technology.com/projects/a380/

MIT ICATMIT ICAT

B-787

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-300 (290-330 pax) (3000-3500 nm)

-800 (210-250 pax) (8000-8500 nm)

-900 (250-290 pax) (8600-8800 nm)

MIT ICATMIT ICAT

B 787 Ordersaprox 432 Firm, 30+ Airlines

ANA - All Nippon Airways (30) 300 (20)800

Japan Air Lines. (30) mix

Primaris Airlines (20) 800

Air India (20) 800

ILFC (20) mix

Northwest Airlines (18) 800

Air China (15) 800

China Eastern (15) 800

Air Canada (14)- 14 787

China Southern Airlines (10) 800.

Continental Airlines (10-13) 800

Ethiopian Airlines (10) 800

Garuda Indonesia (10) 800

Korean Air (10) 800

Shanghai Airlines (9) 800

Hainan Airlines (8) 800

LOT Polish Airlines (7) 800

First Choice UK (6) 800

LCAL (6) 800

Shanghai Airlines (6) 800

Blue Panorama (4) 800

Royal Air Maroc (4) 800

Vietnam Airlines (4) 800

Xiamen Airlines (3) 800

Air New Zealand (4) 800

Icelandair (2) 800

Air Pacific (5)

Kenya Airways (6)

QUANTAS (45)

Air Canada (15)

Northwest (18)

Air India (27)Source: http://www.zap16.com/civ%20fact/civ%20boeing%20787.htm and Boeing.com

MIT ICATMIT ICAT

“All New” A350Not your fathers A330

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Source: http://www.airbus.com

250-300 Seats

7500-8800 nm Range

MIT ICATMIT ICAT

Turboprops

ATR 72 DHC-8 Q400

ATR sales 2005/2006:

- Record 90 orders for ATR 42/72 turboprops in 2005

- Sold 46 in the Q1 2006

MIT ICATMIT ICAT

Very Light JetsSmall turbofan aircraft

Aircraft characteristics*Passengers: 4 to 8Acquisition price: $m 1.4 to 3.6Cruise speed: 340 to 390 ktsOperating ceiling: 41,000ft to 45,000ftRange: 1100 to 1750 NMTake off field length: 2200ft to 3400ft

OrdersEclipse: 2300Adam: 75Mustang: 330+

* for twin-engine VLJs (excludes D-Jet)

Eclipse500Eclipse Aviation

MustangCessna

Adam700Adam Aircraft

Safire26Safire Aircraft

D-JetDiamond Aircraft

Phenom-100Embraer

ProJetAvocet Aircraft

HondaJetHonda

Epic LTEpic

Spectrum 33Excel Sport Jet Eviation EV-20

MIT ICATMIT ICAT

Battle for New Nonstop Service between China and the U.S.

The U.S. Department of Transportation will award one new route between China and the U.S. by the end of 2006.

Four U.S. airlines are competing for the route: United, Northwest, American and Continental.

map of world and routes, list of airlines and restriction

Current services: from New York, Chicago and San Francisco.

The U.S. Department of Transportation will award one last route (until 2008) between China and the U.S. by the end of the year.

Four U.S. airlines are competing for the route:

United,Northwest, Continental,American

Contest between airlines to develop support for a particular route.

Northwest AirlinesRoute: Detroit toShanghaiSeats: 335Flight Time: 14 hr. 45 mins.

American AirlinesRoute: Dallas/Ft. Worth to BeijingSeats: 247Flight Time: 14 hr. 30 mins.

Continental AirlinesRoute: Newark, N.J.to ShanghaiSeats: 283Flight Time: 14 hr.

United AirlinesRoute: Washington, D.C. Worth to BeijingSeats: 347Flight Time: 15 hr. 15 mins.

Source: Detroit Free Press 10/18/2006

MIT ICATMIT ICAT

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