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AEROSPACE NEWS

Airlines Order Aircraft Years Ahead To Secure Delivery Slots

Key Takeaways
  • Airlines order aircraft years in advance to secure delivery slots.
  • Long production backlogs force airlines to wait up to 12 years for new jets.
  • Airlines can adjust orders or exercise options for additional aircraft.
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Strategic Implications

This trend may indicate that airlines are prioritizing future capacity over current needs, which could suggest a shift in industry dynamics. The practice of buying delivery slots as assets may become more prevalent, potentially altering the competitive landscape of commercial aviation.

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What Happened

Carriers Invest In Future Capacity Amid Long Production Backlogs

Airlines are ordering aircraft years in advance to secure delivery slots, despite not needing them immediately. This strategy is driven by long production backlogs, which can take up to 12 years to fulfill. According to the International Air Transport Association (IATA), the current order backlog of 17,000 airplanes is equivalent to almost 60% of the entire active global fleet. Airlines like Alaska and Lufthansa are taking advantage of options to adjust their orders or secure additional aircraft, as reported by Simple Flying.

Source

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JUMPSEAT
AEROSPACE NEWS
JUMPSEAT
AEROSPACE NEWS

Airlines Order Aircraft Years Ahead To Secure Delivery Slots

Sponsored by: Jumpseat Solutions
Key Takeaways
  • Airlines order aircraft years in advance to secure delivery slots.
  • Long production backlogs force airlines to wait up to 12 years for new jets.
  • Airlines can adjust orders or exercise options for additional aircraft.
Sign in to view key takeaways Get full access to in-depth analysis and key takeaways.
Sign In
Silver membership required Upgrade to Silver to access Key Takeaways.
Upgrade
Strategic Implications

This trend may indicate that airlines are prioritizing future capacity over current needs, which could suggest a shift in industry dynamics. The practice of buying delivery slots as assets may become more prevalent, potentially altering the competitive landscape of commercial aviation.

Sign in to view strategic implications Get full access to strategic analysis and expert insights.
Sign In
Silver membership required Upgrade to Silver to access Strategic Implications.
Upgrade

What Happened

Carriers Invest In Future Capacity Amid Long Production Backlogs

Airlines are ordering aircraft years in advance to secure delivery slots, despite not needing them immediately. This strategy is driven by long production backlogs, which can take up to 12 years to fulfill. According to the International Air Transport Association (IATA), the current order backlog of 17,000 airplanes is equivalent to almost 60% of the entire active global fleet. Airlines like Alaska and Lufthansa are taking advantage of options to adjust their orders or secure additional aircraft, as reported by Simple Flying.

Source

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