Aircrafts selection of fleet planning enables an airline to match its capacity

        The returns arising from any business are the determining factor for its undertaking. Airlines operate in a highly competitive environment with key players adopting complex strategies. It is therefore rational for a new airline to monitor its operational costs in order to attain market niche. This being so, profitability and efficiency play a key role in the selection of the best combination of carriers to be used in the new airline.  The operation costs of each aircraft are done and profitability attributes attained.  From this analysis, it is clear that for the airline to operate efficiently and attain a sense of profitability, A320 has to be selected for its operations.  The profitability attributed to this carrier arises from operation economies and other relevant costs. This selection will enable the airline to be competitive and attain a niche in the market.  Profitability and efficiency are vital in enhancing the sustainability of this airline in an industry highly dominated by large carrier players.  An analysis of costs and revenue attributed to each carrier is done below, which forms the basis of the determination of the best aircraft to be used by this airline.

        From the analysis of the data presented above, the profitability that the airline will attain will be as a result of maximizing the utilization of Airbus A320. This will keep the operational costs down and increase revenue in the projected 10 year period. A320 has a higher carrying capacity than CRJ100. Its costs of maintenance and fuel costs are also higher.  The efficiency and profitability of operating A320 are higher than that of the Bombardier CRJ100.  Therefore, taking this into consideration, I propose to the COO that the airline should to use A320 in its undertakings as opposed to CRJ100.   Flight frequency determines the profitability of the aircraft.  This will have a bearing on the total costs of operations as well as environmental impacts of the airline.  Data obtained from the International Air Transport Association (IATA) showed that the revenue passenger kilometers (RPK) for the year ended 2017 rose by 7.6% [1]. The data shows that more than 4 billion passengers used air transport in that period with the number expected to rise. This increasing air travel poses a threat to environmental conservation bearing in mind the carbon steps left by each flight. The social conflict arising from aircraft’s noise will also be reduced and this will reduce significant costs associated with litigations and community resistance. It is therefore important to consider selecting the number of flights taken by an aircraft when determining the profitability and efficiency of the carriers,

        The rationale behind the selection of the carrier is on its profitability as well as carrying capacity, which are higher. CRJ100 has a carrying capacity of 90 passengers and makes2778   flights per year.  This translates to about 200,000 passengers annually.  Airbus A320, on the other hand, makes 1471 flights annually, with a seat capacity of 170.  The bigger carrying capacity for the airbus will enable mass movement of passengers, hence result in higher revenues. The operating economies of Airbus A320 are taken into considerations, which forms the basis of its selection. Efficiency dictates that the aircraft with lower operating costs and that with lower flight frequency be considered more for operations.  The global economies of operation are derived from environmental protection [2]. Therefore, the social wealth of the airline will be attained by lowering the number of flights made by its airline in the 10 year period and beyond.  It is on this basis that I propose to the chief operating officer the deployment of Airbus A320 by this airline for it to achieve its profitability as well as corporate social gains.

        The profitability that arises from implementing this project will be realized from the evaluation of revenues derived from the operation of the selected aircraft. The projected revenue for Airbus A320 is 18,312,329 in the 10 year period. This data illustrates that using A320 in the airline will result to more value and profitability than using CRJ100. This projected profit will be vital in developmental aspects of the airline in its 10-year plan and beyond.  This will enable the airline to meet its projected customer base of 373,721 passengers per flight per carrier in the projected 10 years period.

References of fleet planning enables an airline to match its capacity