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Fleet Planning: The Aircraft Selection Process

The Hub-and-Spoke System

The Prederegulation Era

As the hubs become increasingly congested and slot limitations more constraining, there is a natural tendency to schedule larger aircraft rather than smaller ones through the hub, especially during periods of peak activity.

Before deregulation, the airlines constituted a fairly stable business, and fleet decisions were much simpler, usually based on technical considerations.

With deregulation, the established airlines had to find ways to reduce the operating costs associated with aircraft already in their inventory that were not as efficient as the newer generation of equipment

1-)FACTORS IN FLEET PLANNING

There are many factors; the price of fuel, the availability and price of used aircraft, route structure, labor costs…All are even more important than before in today’s deregulated environment.

One of the most difficult decisions airline managements must make is whether to buy new or used aircraft and what type.

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