Low cost long-haul airline progress hampered by widebody prices and availability

The low cost long-haul movement is a bit like a bottle of sparkling wine ready to be cracked open. The wire collar of market access is turning as a result of progressive liberalisation, while the foil cover of high widebody prices and lack of availability of aircraft could be starting to peel away. Once Airbus and Boeing get on top of their widebody production issues, the low cost long-haul bottle could be well and truly shaken and ready to burst forth spectacularly. Oil prices and the state of the global economy will, however, ultimately determine the amount of fizz. [1761 words]

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This report contains the following subheadings:

• Long haul aircraft prices down in 2009, and could fall further in 2010: The foil is coming off
• Widebody prices not depressed enough yet for Ryanair
• Success in Asia: Longhaul success proves LCCs can go anywhere: AirAsia X
• Jetstar’s long haul aspirations affected by B787 delay
• Economic downturn takes toll: Air Berlin moving away from long-haul operations
• Long haul makes “absolutely no sense” in the current environment: NIKI
• Outlook: Big potential for the brave

This report contains the following charts and tables:

• Constant age market values: B767-300ER and A330-300
• Value changes peak to trough
• Year-on-year value changes: constant age B767-300ER and A330-300
• AirAsia and AirAsia X: model and operational differences
• AirAsia X sector length breakdown (frequency of city pairs by sector length (km)): Sep-2009
• Low cost long-haul airlines fleets and configurations: AirAsia X, Viva Macau, Jetstar and (now defunct) Oasis Hong Kong and Zoom