Professional Statement: Airbus A340-500/600 Product Life Cycle and Nacelle Components Final Report
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N “The Forecast International Data (March 2007), assumes Airbus will be unable (ed. Author used unavailable) to further improve the A340-500/600 and yet history has seen the opposite and the example I would use is the A300 which first entered service in the early 1970s and production is only now ceasing.” ow, it is true that the A300 was delivered from 1974 through 2007. The original A300 was designed for high capacity, short-to-medium haul routes. Over time, it was gradually evolved to larger capacity, longer range, with many different engine combinations, and in included a very successful production line freighter variant. The A340-500/600 was designed for a very different market; very long range international sectors. There is little prospect for further improvement of the aircraft unless Airbus is willing to spend billions on a new wing and new engines which might close the performance gap with its principal rival, the Boeing 777LR. Airbus is in NO position to invest such sums, considering the near financial disaster of the A380 development, problems with the A400M military transport, and significant spending on the A350XWB. The inability to effect such improvements is borne out in the recent order battle with the B777 which Boeing securing 137 firm orders in 2007/2008 while Airbus booked a total of 10 net over the same two years. AIRLINES DON’T EXPECT ANY FURTHER IMPROVEMENT. Even with a short production run, one might expect the A340-500/600 to operate for more than 20 years after production cessation. The Lockheed L-1011 ended production in 1981 and a few are still in operation worldwide 26 years later. Yet, the economics of the A340-500/600 indicate a much shorter service life than other wide bodies. For one thing, there is no A340-500/600 in freighter operations and future potential for conversion to cargo is limited by its relatively high fuel consumption and maintenance burden, and the near-term availability of the A340’s twin engine “sister” the A330-200F. Generally speaking, wide bodies of all kinds, including first generation types Lockheed L-1011, DC-10-10/30, Boeing 747-100/200/300, Airbus A300 and A310 have had their operational lives extended by their shift to the all freight market. Wide body conversions were until very recently, at an all time record. Nearly all MD-11s, just fewer than 200 to be exact, have been converted to cargo service or will soon be so. And while even the MD-11CF and Fs will be replaced by newer twin-engined wide body freighters including but not limited to the B777F and A330F, MD-11s are expected to remain in service for at least another 10-20 years partly because of the unique payload niche the MD-11 occupies (See chart below). However, such is not expected to be the case with the A340-500/600. Firstly, the expected fleet size is far too small on a historical level for conversion consideration. Second, fuel burn and high average maintenance make it woefully inadequate when considering options. An A340-500/600 freighter would have operating costs near that of the 747-400 but a payload capability closer to the MD-11. It is, therefore, not logical to think that the A340-500/600 will migrate to freight service at any time in its life. 
Source: Bloomberg Investments, November 2006. If the A340-500/600 had better payload and fuel consumption performance, it might have a future along the lines of the MD-11 mentioned above. MD-11 residual value history (AirClaims) is on the next page. Directory: casefiles casefiles -> Advent Systems V. Unisys Corp. (3rd Cir. 1991) (Weis) advent systems ltd V. Unisys corp casefiles -> Apple Computer V. Microsoft (9th Cir. 1994) (Rymer) apple computer, inc V. Microsoft corporation Download 2.54 Mb. Share with your friends:
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