Aircraft Asset Assessment

Market Presence As a member of the A320 family, technology is not an issue for the A318. Technical obsolescence will not feature for many years or at least until the A320 family is upgraded or replaced. The interior of the A318, providing a wider diameter than the competition, is already proving to be a...

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Market Presence

As a member of the A320 family, technology is not an issue for the A318. Technical obsolescence will not feature for many years or at least until the A320 family is upgraded or replaced. The interior of the A318, providing a wider diameter than the competition, is already proving to be a winner on other members of the A320 family. On a 100 seater, such an advantageous interior arrangement will further enhance passenger perceptions. The high gross weight A318s are now a match for the B737-600, something that was lacking with the original payload/range objectives. However, a 100 seater usually flies shorter sectors such that flight times are likely to approximate an hour. The difference in MTOWs has a significant effect on range capability. While structural changes are unlikely to be necessary to accommodate higher gross weights on a post production basis, there may be some operating empty weight implications.

The PW6000 is essentially an all new engine but has suffered from delayed certification. An all-new engine usually encounters teething problems, potentially impacting reliability but the considerable redesign represented a major delay. To compensate for other teething problems that may occur with an all-new engine, launch customers normally receive guarantees and penalty payments to counteract any operational deficiencies. In the years following service entry, new engines tend to feature better fuel efficiency. The lack of commonality with the other members of the A320 family may, however, see the CFM56 favored.

Market Outlook

Stretches to regional jets have impinged on the markets to be served by the A318. The appetite for the A318, B737-600 and B717 stems from the efficient application of scarce resources. The A318 and competitors straddle the two market segments. The aircraft is too small for the larger airlines as it fails to make best use of expensive cost items such as mainline pilots. Conversely, the A318 is too large for regional carriers who may be dependent on code-sharing agreements and operate on routes with thinner traffic, insufficient to support the more capital intensive 100 seaters. The market for the 100 seater may yet emerge as the larger operators become more streamlined in their operational structures sufficient to operate smaller aircraft economically.