Royal Aeronautical Society Heathrow Branch January 2020 Lecture -
"The Commercial Viability of Ultra Long-Haul Operations: Evidence from Qantas’ Perth-London Service"
by Linus Benjamin Bauer MRAeS, Senior Consultant, PROLOGIS


ABSTRACT:
In the past 15 years, various ultra long-haul routes were operated by airlines from different regions across the globe. Between 2004 and 2013, the majority of ultra long-haul routes were axed mainly due to very high operational costs making it impossible for ultra long-haul operators to break-even. Despite the negative developments in the past, current airlines such as Qantas and Singapore Airlines still operate or intend to operate ultra long-haul routes with the current generation of more fuel-efficient aircraft such as the Boeing 787-9 and Airbus A350-900(ULR) while other airlines and various experts from the aviation industry highly question the feasibility of these cost-intensive services.

Due to the lack of clear academic evidence, the guest lecturer and author, Linus Benjamin Bauer aims to enhance and update the current debate in the aviation industry, whether ultra long-haul flights, in general, are either commercially viable or not. He will present the first-ever produced academic evidence at this RAeS Heathrow Branch lecture, with the help of a specifically designed revenue-cost model testing the commercial and economical feasibility of ultra long-haul services.

As a foundation for the development of a revenue-cost model, a detailed market analysis of Qantas’ current ultra long-haul service between Perth and London with reliable data and accurate assumptions was conducted by the author. Additionally, a sensitivity and risk analysis were conducted to support the validity of results from the revenue-cost model.


ABOUT THE SPEAKER:
Linus Bauer MRAeS has been working in the aviation industry for over six years. The German-born aviation professional has worked for several airline companies, including SkyWork Airlines, Etihad Airways and Singapore Airlines.

In 2019, he graduated with a Master of Science degree in Air Transport Management from the City, University of London and was honoured with the Outstanding Academic Achievement Award personally by HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and CEO of Emirates, in Dubai.

Linus Bauer is currently working as an independent aviation consultant and doing his PhD degree in Air Transport Management. Since August 2019, the recent graduate is also a Visiting Lecturer in Air Transport Management at the City, University of London.