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Online Airline Management Simulation
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Author Topic: New Aircraft Costs  (Read 2393 times)

Offline mark320

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New Aircraft Costs
« on: November 04, 2014, 09:09:57 AM »
Salutations all,


Is there some reason why Airbus pricing does not seem to tally anywhere close to reality? A NEO is cheaper than a CEO, an A330 costs not much more than an A321 CEO and an A350-800 costs more than an A380.


List prices are available online and the current in game pricing can spoil strategies.

http://www.airbus.com/presscentre/pressreleases/press-release-detail/detail/new-airbus-aircraft-list-prices-for-2014/

Regards,

Mark320

Offline Mr.HP

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Re: New Aircraft Costs
« Reply #1 on: November 04, 2014, 09:44:07 AM »
Price of A/C is dynamic based on how popular the A/C is

http://www.airwaysim.com/forum/index.php/topic,26356.msg319668.html#msg319668

A380 got few orders, so their price is quite cheap compared to other models

NEO is cheaper, as Airbus hasn't delivered any NEO yet

Not many A330 are in ordered, so price is lowered a bit

Offline gazzz0x2z

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Re: New Aircraft Costs
« Reply #2 on: November 04, 2014, 10:06:13 AM »
The new price dynamic has some twists, I think, as used planes do not follow the "new" trend, and planes to come do not follow the family trends. The A158 price went down only after it came to market, event though the A148s sold badly, and noone preordered the A158 until the very last months. Same - in the reverse - for the NEO/MAX families.

Needs some balancing, I think. But it's a good base. I like the functionality overall.

Offline mark320

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  • Posts: 101
Re: New Aircraft Costs
« Reply #3 on: November 04, 2014, 11:07:00 AM »
While supply and demand are natural economic drivers, it has to be realistic and balanced or else there is a risk of abusing of the system. What one can see from this system is that larger airlines in the game can potentially over-order aircraft such as the A350 thus artificially inflate the price for smaller airlines and then leasing them out when delivered, leaving no option but to lease from these airlines which have now taken over all delivery slots, years into the game.

It looks far off from 5-10% quoted, so much so that for example an A350-800 costs 24% more than the Airbus price list as reference while an A380 costs 29% less than reference.

http://www.airwaysim.com/game/Aircraft/New
http://www.airbus.com/presscentre/pressreleases/press-release-detail/detail/new-airbus-aircraft-list-prices-for-2014/

As one can see, only maintaining proportionality can a pricing system be fair. Larger airlines will get volume discounts anyway.

Regards, 

Offline schro

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Re: New Aircraft Costs
« Reply #4 on: November 04, 2014, 01:52:46 PM »
The problem with the nuts pricing in my opinion is that pricing is based upon historical list price instead of historical sale price of planes. 50 years ago at the dawn of the jet age, the difference between list price and sale price was very small. In the current day, list price runs about double of the list price of a plane, and that's before considering discounts. For example, it is believed that delta paid 40-50m per 739 that they ordered (100plane order) and 110m per a330-300 (10 plane order). If you compare that price to list, you'll see the point I'm making.

Offline mark320

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Re: New Aircraft Costs
« Reply #5 on: November 04, 2014, 05:58:56 PM »
You are right Schro, however I do not think it is the right mechanism. Discounts run in the order of 30-40% of list prices but inflating the prices because a model is popular defeats the purpose in my opinion. The game aims to mimic reality and it is offered as a management tool, so what I am proposing is a realistic mechanism.

List prices should be just that, and possibly linked with real life prices and inflation. Discounts then should be heftier according number ordered and "likeability" e.g. an A380 lists at 400M at the moment, an order of 10 will yield a 10% discount and if the model is not selling then a further discount according to the airframe slot date is added like 1% per week away starting from, say, 6 months (24%). So if order 10 A380s and one of the frames will be a white tail within 3 months I will get a discount of 10% +12%=22% off list: 88M discount for THAT frame but not for the others.

In that way one can risk ordering at empty slots to get a discounts instead of bulk ordering. This would help small airlines buy the heavy metal (carbon)!

Having said this, I would not have a clue how difficult this is to programme!

Regards,

Offline mark320

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Re: New Aircraft Costs
« Reply #6 on: December 17, 2014, 09:16:15 AM »
there we have it, A350 production line jammed for 2 years, fuel costs sky high and the big airlines who had increased the aircraft price in the first place are now on the market with " This aircraft has a relatively expensive selling price and you should consider before purchasing it.
We estimate the fair price to be between...." and what a premium it  >:(

 

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