Airbus Industrie has emerged the winner in a major competition between aircraft manufacturers to sell new long-haul jetliners to Air Mauritius. After careful deliberation, the airline decided to purchase three Airbus A340-300s, rather than the rival Boeing 777 or McDonnell Douglas MD-11.
In addition, Air Mauritius is to acquire two A340-300s on operating leases from US aircraft lessor International Lease Finance Corporation (ILFC). It also has options to purchase another four A340s from the European manufacturer.
In an astute move the airline – which is headed by Chairman and Chief Executive Officer Sir Harry Tirvengadum – has opted to modernise its long-haul fleet through a mix of long-term finance leasing and medium-term operating leasing. It believes this strategy will provide it with state-of-art jetliners and fleet flexibility, without putting excessive pressure on its balance sheet.
The Air Mauritius team which evaluated the different aircraft types included Ranjit Appa, the airline’s Technical Director and Special Advisor to the Chairman, and Vinod Chidambaram, its Director of Planning and Information Systems.
The total value of the three A340s to be bought by Air Mauritius is put at around US$300 million, including spare parts and training. All the A340s will be powered by CFM56-5C engines made by CFM International, the Snecma/General Electric joint venture.
Air Mauritius is one of Africa’s best run and most profitable carriers and is regarded as a reliable and prestigious customer by aircraft manufacturers and financiers. The airline’s selection of the A340 may influence the future equipment decisions of other airlines in the region, particularly those operating Boeing 747SP aircraft such as South African Airways and Air Namibia. Much will depend on the performance of the A340 when it enters service with Air Mauritius.
Losing the Air Mauritius deal was a blow for Boeing which is keen to expand the international customer base for its new 777 twinjet. The next battleground in Africa for the major aircraft manufacturers could well be Ethiopia. Ethiopian Airlines has been evaluating the A340, Boeing 777 and MD-11 for some time as it prepares to eventually replace its Boeing 767s.
So, why did Air Mauritius reject the Boeing 777 and MD-11, and choose the Airbus A340 instead? There are several key factors which led to this important decision. Perhaps the most crucial of these were the ‘ETOPS’ factor, aircraft availability and cost considerations. The two strongest contenders in the race were the A340 and 777.
Although Air Mauritius does not doubt the safety of the twin-engined Boeing 777, it decided that the four-engined A340 was better suited to its own mainly long-range, over-water operations to destinations such as Europe and Australia.
Since the introduction of modern widebody twinjets like the Airbus A310 and Boeing 767 there has been a heated debate about the safety of extended, long-range operations (ETOPS) over water using twin-engined aircraft. Despite the relatively low number of in-flight shutdowns of modern aero-engines, some airlines prefer to operate four-engined aircraft over large stretches of water, which gives them an extra safety margin.
The imminent introduction of even bigger and longer-range twinjets – namely the Airbus A330 and Boeing 777 – has rekindled the ETOPS controversy, especially as the manufacturers are asking the certifying airworthiness authorities to permit these new aircraft to perform ETOPS operations from day one.
The A340 is the longest range aircraft in the world and the largest ever built by Airbus Industrie. It has specifically been designed to be profitable on long ‘thin’ routes. Air Mauritius has chosen the A340-300, a bigger model which has a range of 7,150 nautical miles (13,200km) and will seat 12 passengers in First Class, 35 in Business Class and 235 in Economy Class.
Timing was a crucial factor for Air Mauritius. Unlike the Boeing 777 which is still being built the A340 entered airline service this year with Air France and Lufthansa. The first 777 is not due for delivery until May, 1995 (to the US carrier, United Airlines).
Air Mauritius wants to reduce its operating costs by phasing out the Boeing 747SPs it leases from South African Airways. It will acquire its first A340 from ILFC in April, 1994, and one directly from Airbus in November, 1994. The second ILFC aircraft is due for delivery in April, 1995, while the remaining two from Airbus are due for delivery in April, 1997, and April, 1998.
The financial costs of waiting until the Boeing 777 was available were said to be considerable. In addition, the airline concluded that the projected operating costs and efficiency of the A340 were superior to that of the 777. Following an extensive flight test programme, Airbus proudly contends that the A340 will either meet or exceed its guarantees in terms of payload, range and take-off performance.