American Airlines is one of the many carriers around the world to turn away from the Airbus A380 superjumbo.
he end is near for the Airbus A380 superjumbo jet. Here's how it went from airline status symbol to reject in just 10 years"The reality is that we don't just funnel all of our traffic into one hub," he said."We operate out of nine different hubs in the US and because of that there's no single hub where you can pool 500 people's worth of demand every single day and go make that work.
Raja added,"if you could do it, you'd do it on a few routes but not enough to go buy the 20 or 30 or 40 airplanes you would need in order to justify having the infrastructure of an airplane like that."When airlines buy planes, the investment reaches far beyond the aircraft itself. "The first issue would be whenever we buy airplanes, especially a new airplane type is the amount of infrastructure it takes to go and support it," Raja said."You need to have a dedicated pool of pilots, a pilot training regime, fixed maintenance, a maintenance program around it, a certain amount of spare parts."
"All of that is a huge degree of fixed cost so want to have that scale over a number of units," Raja added.An American Airlines executive reveals why its exposure to the grounding of the Boeing 737 Max has been limitedAt the end of the day, the A380's cost, infrastructure needs, and pressure to generate passenger demand make the plane too much of a risk.
"It's hard to see a place where you're worth it taking that kind of expense with that kind of demand and even if the yields are alright you can take a good market and make it negative pretty fast," Raja said.
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