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2.2 The relationship between financial documentations

NOTE: this activity should take approximately 20 minutes to complete

Choose one airline strategy from below and consider the factors that an airline will use to determine fleet acquisition strategy and fleet management. Consider the circumstances between purchasing and leasing in each scenario.

  • Short-haul LCC
  • Long-haul LCC
  • Long-haul FSC
  • FSC operating both short-haul and long-haul routes

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Manufacturing aircraft is a complex process and the manufacturers typically only produce to order. They do not produce airframes and then look for customers. Manufacturing backlogs can influence fleet planning and management. Airlines looking to rapidly expand may prefer to lease or purchase second-hand if the large manufacturers have a backlog of orders.

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