Aviation Economics
In India - Airlines are ordering 100's of aircrafts, ticket prices surged, people are thinking to avoid pricy tickets, due to jobs. We are not in recession. How are the calculations made for count of aircrafts to buy? Europe - their economy ain't better than India currently, why do they need more aircrafts? Care to explain the math of survival/profit??
Well more and more people are flying these days and new airports come up which also require more planes and not to mention all those cargo planes for your 2 day shipping needs.
Moreover it takes time to build a jet and there are like only 2 large players in the market - Boeing and Airbus so you need to setup a multi year plan and timeline for order and delivery.
Coy Denver
Stealth
9 months ago
Read about red ocean strategy.
Airline business is cut throat competition business. Companies will do anything to kill market share of others.
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