fleet planing (AVIATION)

fleet planing (AVIATION)
Questions to be addressed:

City Investments requires a structured, professional report which will recommend changes to the fleet following a merger between AA and US. The report should focus on aircraft of more than approximately 100 seats – in other words it should exclude consideration of types built by Bombardier and Embraer. The report should begin by providing a general comparison between the two fleets (numbers of aircraft, manufacturers, engine suppliers, proportion of standard – bodies and wide bodies, and seat configurations). It should then address the following questions:

1. What are the prospects for traffic growth for the new airline formed from a merger of AA and US? Would any post-merger rationalization of routes influence growth prospects?
2. What appear to be the current commitments for additional aircraft (orders and deliveries) and how will these plans influence the future fleet composition?
3. How do these commitments match with likely retirements of older aircraft and any need for additional aircraft to provide for growth?
4. Are there any obvious synergies between the two fleets, are there any obvious mismatches?
5. Are there any obvious benefits that could arise from rationalization (although any new merged company would continue to have multiple hubs)?
6. Are there any categories of aircraft that are already quite old and will need replacing where a joint order could be beneficial?
The conclusions of the report should provide a summary of a set of recommendations for:
“Changes to the fleet following a merger between AA and US”
It can be assumed that there is likely to be some network rationalization and in the medium term the two airlines will be integrated under a single brand.

 
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