The outcomes of the aircraft appraisal model indicate that switching to A320neos on lease (Option 2) might be beneficial. The fuel consumption of the A320neo aircraft is lower than that of the current A320-200 aircraft (2,234 kg vs 2,988 kg per sector). As a result, this option could offer a large benefit (NPV of USD 31 million) through lower fuel consumption and thus lower fuel costs. At the same time, a fuel reduction means a lower emissions impact (about USD 2 million benefit). It can be concluded that keeping the current A320-200 (NPV of USD 8.9 million) is less profitable than replacing it with a leased A320neo (NPV of USD 31 million) for Airline A, but better than a B737-800 (NPV USD 4.3 million). The option to lease the A320neos appears to be preferred in most cases, considering the impact of noise and NOx cost, due to the large benefit of NPV USD 25 million compared to the A320 and an approximately 29 million difference compared with the B737-800.
The authors would like to express our gratitude to Mr Larry Gary, Mr Mads Neumann, Mr James MacFarlane, and all Maitland members for their valuable suggestions and support to our research. In addition, we are appreciative of our colleagues and friends, Mr Berkcan Uyan, Mr Hao Cai, Mr Martin Stramszki, and Mr Miquel Barbany, for their support to our work. The authors are solely responsible for any remaining omissions and errors.
Miyoshi, C. and Torrell, P. (2019), "Flying Economy – The Economic Impact of New Propulsion Technology: A Cost-Benefit Analysis of the Geared Turbo Fan Engine on the London Heathrow and Frankfurt Route", Airline Economics in Europe (Advances in Airline Economics, Vol. 8), Emerald Publishing Limited, pp. 201-228. https://doi.org/10.1108/S2212-160920190000008009Download as .RIS
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