*Airbus to LAX: Take your time

Los Angeles International Airport might not be so late in accommodating those huge Airbus A380 jets. With the European consortium that owns Airbus warning of further delays in delivering the superjumbo jet - they're now talking at least 2008 - perhaps LAX can better handle the big planes. A $576 million overhaul of the Tom Bradley International Terminal, which begins in January, includes renovating the boarding areas to deal with the 550+ passengers on the A380, which will be the largest commercial airliner. It had been scheduled to start service at LAX next year. As it now stands, a dozen or so planes are supposed to be delivered in 2008, 25 in 2009 and 45 in 2010. But problems with the plane are so serious that customers are getting antsy. The LAX renovation is supposed to be completed in March 2010.

*Boeing cheers: William Trent at Stock Market Beat notes that by the time Airbus gets its act together, there may be only limited demand for the super-jumbo jets (aside from overnight services and a few international routes). Trent says that Boeing's smaller 787 Dreamliner is more in tune with what carriers are looking for.

The only most successful US airline, Southwest (LUV) earned its success by offering non-stop flights from smaller airports. Rejional jets could open point-to-point non-stop service to an even larger number of even smaller airports - paving the way for the next Southwest. Smaller jets can be loaded and unloaded quickly, saving precious time for passengers and precious money for the operator - who can keep the jets flying (earning money) rather than sitting on the ground (costing money). Smaller airports allow passengers to pass more quickly through security, further saving time. Plus, greater point-to-point service to more markets means they also save time by not having to connect through hubs. Lacking the dramatic potential of larger jets, regional jets are likely to be avoided by terrorists. We don’t have any skin in this game, but if we had to place a bet, we would pick Embraer to win, Boeing to place and Airbus to show.


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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
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