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May 19, 2006
Can Airbus Catch Up?
From a post on the competition between Airbus and Boeing.
A lot has changed over the past twelve months. The price of fuel has spiraled and the need for fuel efficiency has morphed from being important to critical in terms of airline operations. Fuel surcharges have ameliorated some of the pain. But, as pointed by Air France’s CEO, sudden fuel price shocks cannot be handled easily since airfares are already contracted. Airline operations are based around a similar business model to that of supermarkets. The customer pays cash while the supplier holds off paying vendors for 120 days or more. This is a great model when business is stable because the middle man (airline or supermarket) builds up a cash mountain. Since airfares are paid in advance of the flight, any item (like fuel) that costs a lot more at the time of service delivery really eats into that mountain quickly.
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Posted on May 19, 2006 07:41 PM by Air Fr115.
Filed in Travel Blog under air france.
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really nice information about air france.
Posted by: travel to india at January 25, 2007 06:00 AM
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Posted by: mariana sanchez at June 28, 2006 07:56 PM
New blog from Air France Mexico : http://airfrance.typepad.com/
Posted by: mariana sanchez at June 28, 2006 07:55 PM
