How all-electric aircraft could impact airline network design
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School of Business |
Bachelor's thesis
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Date
2021
Department
Major/Subject
Mcode
Degree programme
Tieto- ja palvelujohtaminen
Language
en
Pages
21 + 9
Series
Abstract
Flying continues to be the most effective mode when it comes to high-speed, long-distance transportation. Even with the downturn caused by the COVID-19 pandemic, European aviation is expected to fully recover and continue growing from 2023. However, as awareness on climate change increases, so does pressure on the aviation sector. Emissions need to be cut. The first all-electric aircraft are already expected to start operations in the first half of this decade. How do these new types of aircraft fit into the current airline network structure? Airlines have typically three methods to build their network structure: hub-and-spoke, point-to-point or a combination of the two. Previous research shows that traditional airlines tend to prefer the hub-and-spoke model in most cases, as it allows demand consolidation, resulting in lower risks and higher load-factors. However, in situations where fuel costs are high, the choice can drift more towards a point-to-point model. Also, low-cost carriers show that point-to-point networks can be more efficient to operate. The first-generation all-electric aircraft are, depending on the model, expected to hold somewhere between 9 to 20 passengers and have an operating range of 160 to 800 kilometres. The small capacity and range will limit them to short haul operations for years to come. Additionally, electric aircraft are expected to be much more efficient, thus having lower energy costs compared to traditional aircraft. According to the findings of this thesis, the characteristics of all-electric aircraft favour hub-and-spoke networks over point-to-point networks. The small capacity, low operational costs and low environmental impacts are perfectly suited for the high frequency traffic required by a hub-and-spoke network. Moreover, these networks would not directly compete with existing airline networks, but form new regional networks in sparsely populated areas. Electric aircraft are ideal for regional flying, as their low capacity would lead to increased congestion if operated in high-demand markets. Their specifications and low noise- and environmental footprints allow them to serve small regional airports close to population centres. Therefore, it seems likely that electric airline networks could serve as a new high-speed, zero-emission alternative to other transportation methods, like driving or taking the train or a ferry. The potential use of electric aircraft in current airline networks will likely be limited to small scale feeder traffic into major hubs, as they are not capable of replacing most of the current fleet.Description
Thesis advisor
Tinnilä, MarkkuKeywords
airline networks, electric aircraft, hub-and-spoke, point-to-point