CA BIN R E TROFITS
CLASS
considerations
aircraftinteriorsinternational.com
068 MARCH 2020
“ROI depends on how
much value an airline
places on brand integrity”
is straightforward, and refurbished material is used for
the retrofit (which also lowers investment costs), then
a five- or six-year lease period is reasonable.”
David Kelly, VP of marketing at HAECO Americas
suggests that the ROI calculation is a little more flexible
than that, and really depends on how much value an
airline places on its brand integrity, and the potential
revenue of premium cabin installations.
“When a premium economy class cabin is introduced
you can easily see an ROI in 18 months or less. It depends
on the particular operation and the particular airline,”
says Kelly. “Airlines are looking to have ROIs for their
projects in less than two years.”
Schulz says that ROI depends on the impact the
leased aircraft will have on customers’ expectations of
the airline.
“Overall the question is directly related to the level of
comfort that the passenger experience department of an
airline aspires to,” she explains. “A fresh, state-of-the-art
cabin is like the business card of an airline. Passengers
have a lot of time to enjoy the cabin and its atmosphere
during their journey on board. The better they feel, the
higher the chances the airline will win them as loyal
customers and be able to differentiate themselves from
their competition.”
IATA’s retrofit guidelines give
the example of fitting a premium
economy (PY) cabin, which could
require removal of an existing
galley complex and installation
of a new galley complex at
a slightly different location.
The organisation estimates a
12-16 month lead time for the
development of the required
engineering and integration
kit for the new location, while
a customised new PY seat
development programme could
run 24-36 months from the time
of contracting.
“These are the types of highlevel
schedule and cost drivers
that need to be considered
initially by the project team
and management to decide if
compromising by modifying
existing galleys and utilising
currently available and certified
PY seat products might be
worth pursuing to meet overall
programme goals and budgets,”
say the guidelines.
IATA recommends starting
the process by evaluating
the key elements driving the
retrofit initiative. For the PY
seat, while an airline might like
to have a unique product, it
could be best to use an existing,
certified product and add
customer-specified branding
and feature selections. Further
considerations can be the
modification’s effects on aircraft
weight or CG, which may affect
range and performance; whether
it requires any electrical system
modifications or a review of
electrical load analysis (ELA);
and any required changes in
procedures and locations
of safety equipment.
You can read
the full story behind
Virgin Atlantic’s swift
A330-200 retrofits
on our website
RIGHT: JUST A FEW OF THE
GROUNDED B737 MAX
AIRCRAFT IDLING AT BOEING
FIELD IN SEATTLE.
PHOTO: SOUNDERBRUCE
/aircraftinteriorsinternational.com