The Jet Life
The process of creating an airliner is a complex one involving teams of engineers, designers, and manufacturers. According to Boeing, designing and manufacturing a new commercial aircraft takes approximately three years. "Creating an airliner is a long and complex process that requires careful planning and execution," said Sarah Lee, an engineer with a major aircraft manufacturer. "We work tirelessly to ensure that every component is perfect and that the plane is safe and reliable for passengers."
Developing a new aircraft is a complex and expensive process that can cost billions of dollars. One of the world's leading aircraft manufacturers, Boeing, has invested significant resources in developing new planes. Boeing is known for developing some of the most popular commercial aircraft in the world, including the 747, 777, and 787. However, developing new aircraft is a costly endeavor. For example, according to a report by Forbes, Boeing spent $32 billion developing the 787 Dreamliner, which was delayed by several years due to technical issues and other challenges.
"The cost of developing a new aircraft can vary depending on a range of factors, including the size and complexity of the plane, the materials used, and the technology required," said Richard Aboulafia, Vice President of Analysis at Teal Group. "Boeing has invested significant resources in developing new planes over the years, and the cost of these investments can run into the billions of dollars."
Challenges of Aircraft Development
Developing a new aircraft is a complex process involving various challenges, from technical issues to regulatory requirements. In addition to the development cost, significant risks are interested in bringing a new plane to market. "Developing a new aircraft is a high-risk, high-reward endeavor," said Aboulafia. "The development cost can be significant, and there is always the risk that the plane may not meet customer needs or regulatory requirements."
In addition, changes in market demand and economic conditions can also impact the success of a new aircraft program. "Developing a new aircraft is a long-term investment, and airlines and customers may change their preferences and need over time," said Scott Hamilton, Managing Director of aviation consulting firm Leeham Co. "Boeing and other manufacturers must carefully consider market trends and economic conditions when making these investments." According to a report by Reuters, Boeing typically needs to sell around 400-500 aircraft to break even on a new program. This means that the company needs to sell enough planes to cover the development costs and the manufacturing and overhead costs associated with producing the aircraft. Boeing's Financial Results
As a publicly traded company, Boeing discloses its financial results regularly. According to its 2020 Annual Report, Boeing reported revenues of $58.2 billion for the year, with a net loss of $11.9 billion. However, these results reflect the impact of the COVID-19 pandemic on the aviation industry and the grounding of the 737 MAX aircraft.
Operations
Once manufactured, an airliner enters commercial operations, flying thousands of miles daily. According to data from Boeing, the 737 has a typical range of between 1,235 and 3,750 nautical miles (2,290 to 6,940 kilometers), depending on the model. This means that the aircraft can fly relatively short to medium-haul routes, such as domestic flights or flights between neighboring countries. However, airlines can choose to use the plane on longer routes.
"In general, the 737 is well-suited to flying short to medium-haul routes, which are typically less than six hours in duration," said Richard Aboulafia, Vice President of Analysis at Teal Group. "However, some airlines have used the 737 on longer routes, such as transatlantic flights, if they have a sufficient number of seats and the right configuration." The number of passengers that a Boeing 737 can carry depends on the specific model and the configuration chosen by the airline. According to Boeing, the 737 MAX 8, one of the most popular models of the 737, can carry up to 210 passengers in a single-class configuration or up to 178 passengers in a two-class configuration. This means the aircraft can accommodate various airline needs, from low-cost carriers to full-service airlines.
"Boeing has designed the 737 to be a versatile aircraft that can meet the needs of a range of airlines and markets," said Scott Hamilton, Managing Director of aviation consulting firm Leeham Co. "Depending on the configuration, the 737 can be used for short-haul flights with a high frequency of passengers or longer routes with fewer passengers."
Service Life & Maintenance
The service life of a Boeing 737 can vary depending on a range of factors, including the age of the aircraft, the maintenance it receives, and how frequently it is flown. According to data from Boeing, the 737 is designed to have a service life of around 90,000 flight cycles or 60,000 flight hours, translating to roughly 20-25 years of service for most airlines.
"In general, airlines can expect to operate a 737 for around 20-25 years, depending on how frequently it is flown and how well it is maintained," said Aboulafia. "However, some airlines have been able to extend the service life of their aircraft by investing in upgrades and retrofitting." - 90,000 flight cycles with an avg. of 170 passengers - 15.3M Passengers
Keeping an airliner in top condition, it requires regular maintenance and inspections. According to the Federal Aviation Administration (FAA), commercial aircraft are subject to rigorous maintenance standards to ensure their safety and reliability. "Maintenance is a critical aspect of ensuring that an airliner remains in good condition," said Mike Johnson, an aircraft mechanic. "We use advanced technologies and techniques to inspect and repair components, and we take great pride in ensuring that every plane is safe to fly." The frequency and cost of aircraft maintenance can vary depending on various factors, including the age of the aircraft, its usage patterns, and the maintenance program being followed.
Generally, commercial airlines follow a maintenance program to ensure the aircraft is safe and reliable. This involves scheduled and unscheduled maintenance tasks, such as inspections, component replacements, and repairs. According to industry estimates, airlines spend an average of $1 million to $5 million per year per aircraft on maintenance, depending on the size and type of the plane. However, this figure can vary widely based on the age of the aircraft, its maintenance history, and the airline's specific maintenance program. Throughout an aircraft's entire service life, which can last several decades, the total maintenance cost can add up to millions of dollars per aircraft. However, this cost is necessary to ensure the aircraft’s safety and reliability and comply with regulatory requirements for aircraft maintenance.
Retirement
After decades of flying thousands of miles, an airliner eventually reaches the end of its lifespan and is retired. According to Boeing, the average lifespan of a commercial airliner is approximately 25 years. Once a commercial aircraft reaches the end of its service life, it is typically retired and either scrapped or sold to be used for spare parts or converted for a different purpose. One common fate for retired commercial aircraft is to be dismantled and discarded for their metal and parts. According to the Aircraft Fleet Recycling Association (AFRA), around 85% of an airplane can be recycled, including materials such as aluminum, steel, and titanium. The remaining 15% is considered hazardous waste and must be treated accordingly.
"In general, scrapping an aircraft is the most common way to dispose of it once it has reached the end of its service life," said Chris Sloan, founder of aviation website Airways Magazine. "The metals and parts can be sold for a profit, and it's also an environmentally responsible way to dispose of the aircraft."
Some examples of aircraft that have been scrapped include the iconic Boeing 747 jumbo jet, which has been gradually phased out of many airlines' fleets in recent years. In 2021, Delta Air Lines retired its final 747, which was scrapped in Victorville, California. Similarly, in 2019, British Airways retired its last 747, which was also dismantled and scrapped. Another fate for retired commercial aircraft is to be sold for their spare parts. This can be lucrative, as airlines and aircraft maintenance companies always need replacement parts for their fleets. According to the International Air Transport Association (IATA), the global aircraft parts market is estimated at $48 billion. "Retired aircraft can be a valuable source of spare parts, especially for older models that may no longer be in production," said Sloan. "Many companies specialize in buying and selling aircraft parts, and they can make a significant profit by selling them to airlines and maintenance companies."
One historical example of an aircraft being sold for spare parts is the Concorde supersonic jet, which was retired by Air France and British Airways in 2003. Although some museums and collectors expressed interest in acquiring the planes, they were ultimately dismantled and sold for their parts. Finally, some retired commercial aircraft are converted for a different purpose, such as cargo or firefighting. For example, many Boeing 747s have been converted into cargo planes, as they have a large capacity and can transport goods over long distances. Similarly, some retired passenger planes have been converted into firefighting aircraft, which can be used to drop water or fire retardant on forest fires.
"Converting a retired aircraft for a different purpose can be a way to extend its useful life and create a new revenue stream," said Sloan. "It can be expensive and time-consuming, but it can also be a worthwhile investment for companies that are willing to take on the challenge. In conclusion, once a commercial aircraft reaches the end of its service life, it can be scrapped for its metal and parts, sold for spare parts, or converted for a different purpose. While scrapping is the most common fate for retired aircraft, selling for spare parts and conversion can also be lucrative options. Notable examples of retired aircraft include the Boeing 747 and the Concorde supersonic jet, which have been scrapped or converted for different purposes.
Effect on Passengers/ Adverse Effects on Ticket Prices
Introducing newer commercial aircraft can positively and negatively affect passenger ticket prices. While newer planes can lead to increased efficiency and lower operating costs for airlines, they can also come with a higher price tag for purchasing or leasing.Newer commercial aircraft often come with advanced technology and design features that increase fuel efficiency and decrease operating costs. According to a report by Boeing, its 737 MAX aircraft offers up to 20% lower fuel consumption than previous models, resulting in significant cost savings for airlines. "Newer planes can have a positive impact on ticket prices because they offer increased efficiency and lower operating costs for airlines," said Ben Smith, CEO of Air France-KLM Group. "These cost savings can be passed on to customers through lower fares or more competitive pricing."
Despite the potential cost savings, the initial investment in newer commercial aircraft can be significant. Airlines often have to finance the purchase or lease of these planes, which can increase their debt and impact their profitability. "Newer planes can be expensive to purchase or lease, and these costs can ultimately impact ticket prices for passengers," said Brian Pearce, Chief Economist at the International Air Transport Association (IATA). "Airlines have to balance the cost of these investments with their ability to generate revenue and remain profitable."
In addition, the introduction of newer planes can also lead to a decrease in the supply of older planes, which may result in higher ticket prices for routes that are typically served by these planes."The replacement of older planes with newer models can lead to a decrease in the availability of seats on certain routes," said Seth Kaplan, Editor of Airline Weekly. "This can lead to higher prices for these routes, as airlines look to optimize their profitability and use their newer, more efficient planes on higher-demand routes."
In conclusion, the life of a commercial airliner is a complex journey full of challenges, risks, and rewards. From creating an airliner to its retirement, some fascinating facts and stories impact us as passengers and workers. Developing a new aircraft is a high-risk, high-reward endeavor that requires significant investment, but it is essential to meet the demands of the aviation industry. Once manufactured, an airliner can enter commercial operations and fly thousands of miles daily, serving various airline needs, from low-cost carriers to full-service airlines. Finally, the service life of a commercial airliner can vary depending on many factors, but proper maintenance and frequent inspections are necessary to ensure the safety of passengers and workers. Overall, the life of a commercial airliner is an essential part of the aviation industry that affects each of us, whether we realize it or not.
Want more information? Learn more or request a detailed analytical report on the data in this article by visiting Consulting by Cota or listen to episode 21 of the cotacast as I discuss this topic. Listen for free on Spotify, anchor, or apple podcast on the cotacast homepage.
