Article Review
The article, Fleet Analysis: Fleet composition, replenishment plans and the impact on the pre-owned market 2016 is written by AIN Business Aviation.
Brief Summary
The article examines and analyses various aspects of fractional fleets, owned and operated fleets, and aftermarket fleet sales (pre-owned market impact of the aftermarket sales). It encompasses a detailed analysis of fleets from the key fractional ownership programs in the world as well as owned and operated charter providers. Furthermore, the article analyses the replenishment strategies of the two fleet components and the effects of fleet sustenance on pre-owned markets. The author reiterates that fractional ownership was expected to end about nine years ago. However, this did not happen. The hurry to abandon the program that was witnessed that time was not driven by the need to downsize, but by the perception that repurchase provisions were the only way shareholders could generate quick money. As a result, the shares offer returns at a relatively higher rate, thereby attracting numerous investors (“AIN Business Aviation” par. 20). Decreasing residual values have brought about sticker shockwave for many owners exit programs. Nonetheless, fractional ownership remains the optimal choice for individuals looking for enhanced safety and service consistency. This article also describes the effectiveness of the O&O fleets, especially when compared to the fractional fleets and the charter management operators. It also analyses the actions taken by fractional programs to maintain the relevance and efficiency of their fleets as well as capitalizing on the residual values of the owners’ aircrafts when they exit the fleets (“AIN Business Aviation” par. 20).
Detailed Analysis
Primarily, the author sets out the argumentative steps in a manner that is easy to comprehend. For instance, in the case of fractional programs, he states that it remains an optimal choice for organizations looking for safety and service consistency and gives examples of the actions or activities that different fleet programs are employing to ensure the effectiveness and success of their business models. Executive Airshare, for instance, purchases mainly new aircrafts for its fleet because their operational costs are low and they have fewer maintenance activities. The companies are, therefore, able to get optimum values from their fleets. The author insists that it is not reasonable and profitable to use a pre-owned fleet (“AIN Business Aviation” par. 20). The assertion is widely based on the fact that it would require frequent maintenance works and more crew. This is one of the key reasons why most successful airlines to capitalize on new equipment. Additionally, the anther examines another fractional program called Flexijet. The program also uses new aircrafts that are fitted with attractive interiors such as entertainment systems, customized seating, among others (“AIN Business Aviation” par. 28).
Moreover, the author uses suitable evidence to back his arguments. For instance, he supports most of his points with quotes from individuals who are directly involved in the different business forms discussed in the article. Furthermore, the author has provided different business quotes to prove and underline the importance of using new aircrafts. For instance, he quoted a manager from PlaneSense who said that “Our current strategy is to dispose of aircraft at the 10-year mark, and we went to that [age] after we became comfortable with the maintainability and dispatch reliability of the aircraft.” The article also exhibits results of and extensive research that is supported by evidence (“AIN Business Aviation” par. 35).
Finally, the author uses logical and practical arguments in most sections of the article. Specifically, he provides reasonable arguments that are backed by strong evidence, thereby ensuring that readers are not confused when reading the article. Each argument builds on the previous ones to provide a logical flow. The author also supports his perspectives with clear explanations and evidence. For instance, he provides a clear explanation of the reason why companies are still using the fractional program. He suggests that they use the program because it leads to high safety levels and consistency in services (“AIN Business Aviation” par. 37).
Works Cited
AIN Business Aviation. “Fleet Analysis: Fleet composition, replenishment plans and the impact on the pre-owned market 2016.”Ainonline. AIN Business Aviation. March 28, 2016. Web. January 24, 2016.
