The Commercial Viability of Ultra Long-Haul Operations. Evidence from Qantas' Perth-London Service


Master's Thesis, 2019

124 Pages, Grade: GPA 4.0


Abstract or Introduction

In the past 15 years, various ultra long-haul routes were operated by airlines from different regions across the globe. Between 2004 and 2013, the majority of ultra long-haul routes were axed mainly due to the increase in jet fuel prices. Despite negative developments in the past, current airlines still operate or intend to operate ultra long-haul routes while other airlines and various experts highly question the feasibility of cost-intensive services.

Can ultra long-haul flights be profitable at all? Due to the lack of clear academic evidence, the author Linus Benjamin Bauer aims to enhance and update the current debate, whether ultra long-haul flights in general are either commercially viable or not.

Key findings from Bauer’s comprehensive analysis and developed revenue-cost model conclude that due to the improvement of fuel-efficient long-range aircraft such as the Boeing 787 Dreamliner and Airbus A350, ultra long-haul operations nowadays may prove to be resilient. The cost advantages of such cost-intensive operations may be slight compared to one-stop services. However, ultra long-haul routes are likely to make up for it in market positioning by targeting premium customer segments with lower price sensitivity, one of the main drivers of the profitability of the 21st century airline business.

Details

Title
The Commercial Viability of Ultra Long-Haul Operations. Evidence from Qantas' Perth-London Service
College
City University London  (School of Mathematics and Engineering)
Course
Air Transport Management
Grade
GPA 4.0
Author
Year
2019
Pages
124
Catalog Number
V469332
ISBN (eBook)
9783668987135
ISBN (Book)
9783668987142
Language
English
Notes
Master's Thesis awarded with distinction from City University of London.
Tags
aviation, air transport, qantas, emirates, singapore airlines, airline business, airline economics, aviation management, air transport management, perth, london, heathrow, revenue cost model, revenue management, controlling, profitability, economic viability, commercial viability, project sunrise, boeing, boeing 787, airbus a350, ultra long range operations, airline operations, ultra long haul
Quote paper
Linus Benjamin Bauer (Author), 2019, The Commercial Viability of Ultra Long-Haul Operations. Evidence from Qantas' Perth-London Service, Munich, GRIN Verlag, https://www.grin.com/document/469332

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