When is it still cost effective to own the airplanes for a commercial carrier?

For a modern airline the planning of a fleet composition is fraught with complexity and consists in considering a multitude of variables due to the purpose that they have to meet. Building a successful fleet plan require engineering and commercial knowledge plus a management that is able to review the airline's market positioning and aspirations in order to select the best assets necessary. Fleet planning is a process that considers the needs a carrier is facing, ranging from the very starting up phase, the launch of new route or temporary needs, leads its management to choose a manufacturer and consequently an airplane model that provides the best fits for them with a final view to maximise the company wealth. To acquire the most appropriate liner, and take account of the business plan, modern carrier must focus on three main issues together and at the same time.

The first are the operational necessities that include the existing fleet composition, and how this could influence the decisions based on common costs, the training of pilots, cabin crews and engineering. When an airline operate only one or few aircraft models a lot of costs could be shared with the new assets entering the fleet such as maintenance facilities, with no full time usage, or increasing the negotiating power allowing the management to obtain a lower price for more spare part.

Secondly the decision process should pass through the technical evaluation of the operating costs giving the decision maker an assessment on fuel consumption, performances, number of personnel needed to fly the liner, the specific ground services and all the environmental conditions which the planned routes will face. Different airport facilities with variable conditions and every single country with its own laws and regulations can influence or limit the possibilities in choosing the airplane that should be purchased, for example in India many small regional airport are located amid the mountains requiring a higher climbing rate performances.

Thirdly, the non-technical or operational assessment considers all variables resulting from the market segments with its size, growth and economics, and the level of service provided as the lcc and fsc have different goals to be achieved. The airline development objective and the eventual alliance partnership are also relevant variables since they require the management to anticipate the possible future usage and load factor, when the size of the liner is under question, due to the virtual mergers of operations and the code share flight for sharing costs and revenue.

At the end of the decision process, influenced by any specific considerations, an airline must select which aircraft is the best suited for its needs and at that stage, given the aircraft trading market availability, move onto the purchasing method.