Value analysis is a powerful tool used by aircraft manufactures to compare their aircrafts with other aircraft competitors, it address the technical specification that relate to performance the aircraft with respect with price or value, by creating a base line that split he area of analysis to Attractive and Disappointment.

1. Head To Head Analysis
A320 Family VS B737NG
Value Analysis
Attractive
RELATIVE VALUE
Disappointment
AIRCRAFT PRICE
By : Mohammed Salem Awad
Aviation Researcher
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2. Head To Head Analysis
A320 Family VS B737NG
Value Analysis
By : Mohammed Salem Awad
Aviation Researcher
Introduction:
Generally most of airlines companies in third world countries found too hard to
evaluate commercial aircraft's, due to the complexity of aviation industry and its
optimizations programs especially linear program which implemented in the network
of the airline also the high techniques that possess by aircraft manufacture and
modern sales approach that deliver by their sale forces and their pretend of
manufacturing the best commercial aircraft's – products in the world either Airbus
Industries or Boeing Group, as both aircraft's of these parties have an excellent
characteristics that cannot be differentiated and consequently most of small airlines
refer to third party to evaluate their fleets, which normally a consultant company
specialize in aviation as Sabre Solutions that implemented statistical tools and
analysis in their approaches of evaluation as Value Analysis, Cost per Trip vs Cost
per Seat Matrix, and Profit vs Market Opportunity Matrix. While the issue of
selecting the right aircraft is a main effective parameter for successful airline, as each
market has its own characteristics that reflects/ impact by positive or negative signals
on airline network study for the aircraft specification that have different business
model as corporate airline, private and taxi air, legacy airline, low cost airlines, and
other Mega air carriers and accordingly the aircraft's are diversified and differentiated
to be short range and long range, some has
small capacity while the others have larger ATTRACTIVE
RELATIVE VALUES
one. Finally the new technology play a
major role to reduce the manufacturing cost
for aircraft which reflected by studying the
DISAPPOINTMENT
technical specifications of the aircraft and
their relations with their price and values in
market which is addressing by a so-called AIRCRAFT PRICE
Value analysis for A320 and B737-NG
families. Figure No. ( 1 )
Aircraft Performance Factors
Each aircraft characterize by its own performance factors especially the technical one
that we can develop the evaluation studies as :
1- Aircraft Configuration
2- Aircraft Speed
3- Mean Takeoff Weight
4- Maximum Payload Range( Kilometers).
5- Maximum Payload Range( Kilograms).
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3. Table No. 1 1 ‫جدول رقم‬
Commercial Aircraft of the World Buyers'guide
Dimensions Landing gear Accommodation Weights Fule FAR field lengthsat Speeds Cruise Payload-range
Aircraft Span(m) Track Max seating : Ramp Standard gross weight (m) kt/Mach Performance Max payload-
Type Langth(m) Wheelbase No./pitchcm/ Take -off Optional ISA,+20Cs.1. V2 Speed(kt) load-range
Height(m) Turn radius abreast Landing (lit) ISA,5,000ft VAT Altitude(ft) Max fule
Wingarea(m2) (m) Hold vol m/3 Zero-fuel ISA,at20C.5000ft VNO/M MO Fule consumption(kg/h) kg
/sweep(.) compartments Ops empty _________________ VNE/MNE ___________________ km
(1/4chord) Press diff bars (kg) Take-off Landing Max cruise
Longrange
A300-600R
44.84 9.6 375/71/9 171.400 68.150 2.290 1.550 153 480 456 40.330
54.08 18.6 116/3 170.500 73.000 2.700 1.550 136 31.000 35.000 6.190
16.53 34 .56 140.000 4.700 1.750 335/0.82 5.120 4.300 26.300
260/28 130.000 nla 1.750 395/0.88 8.800
89.600
A310-300
43.90 9.6 280/76/9 150.900 61.070 2.290 1.480 156 484 458 32.950
46.66 15.2 79.9/3 150.000 68.270 2.44 1.680 138 35.000 37.000 6.900
15.81 31.4 .56 123.000 2.960 1.680 360/0.84 4.690 3730 21.100
219/28 113.000 3.650 1.680 420/0.90 9.600
80.000
757-200
38.05 7.32 239/74/6 109.300 42.320 1.880 1.415 154 502 459 26.350
47.32 18.29 50.7/2 108.800 2.110 1.415 132 31.000 39.000 6.150
13.56 36.6 .58 89.800 2.650 1.595 350/0.86 4.800 2.805 17.440
181/25 83.400 3.350 1.595 n/a 8.760
57.067
767-200
47.60 9.30 220/84/8 143.800 63.215 1770 1465 142 491 458 32.025
48.50 19.70 111.4/3 175.543 1.920 1465 136 39.000 39.000 5.910
15.90 39.3 .58 129.276 2.255 1660 360/0.86 5.350 3.780 10.570
283/31.5 117.936 2.470 1660 n.a 11.335
83.462
As it shown in table one, the relation between the aircraft price and other technical
characteristics ( Relative Values – multiplication of these characteristics after
filtration ) are addressed in this study.
Value Analysis:
AIRCRAFT AIRCRAFT
One of the most effective methods to select
PRICE FACTOR and evaluate the aircraft's is Value Analysis,
where it power is to link the technical
characteristics of the aircraft with it price
and consequently develop Basic Line
Reference ( line fit – using regression
Coefficient Of
Correlation analysis ) that split the area into two parts
i.e ( Attractive Region and Disappointment
Region)
No
As indicated in figure ( 1 ).
Yes
As the Aircraft Characteristics by speed,
R > 80 % Rejected capacity , MTOW, Capability range in
terms or distance and weight should have a
direct relations with its price. But not with
fuel consumption as it will reflects a
Accepted negative impact on the analysis, as the
differentiation should be with a less fuel
consumption and not with the high one.
And that relation usually address by
Flow Chart (1) Coefficient of Correlation for Aircraft
)
Characteristics and its price according to the
following sequence:
Coefficient Of Correlation:
The importance of this coefficient is in defining the effective factors that have impact
on the value analysis. Simply it is a mathematical formula that explicit the relation
between two set of data in terms of percentage ( % ) as this will define how far are
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4. related. While 80 % and above the ideal level to accept that data to included in the
analysis. In the context of the statistical analysis normally we use R - coefficient of
determination ( squaring of R ) to raise the fairness of the analysis and avoid negative
values.
Figure No. 2
The Analysis:
By implementing all the previous steps and study most of the characteristics of World
Fleet of Boeing Groups and Airbus Industries as it it shown in figure ( 2 ), the figures
shows Three Groups but unfortunately the coefficient of determination is to poor to
accept as it is i.e 12.5%, since we includes all the world fleet and not targeted a
certain family, and if we refer again to the the three groups, we will note that the last
group contains A320 and B737 families.
So by re-analysis the last group data ( targeting the last group ), we will find a
relation between Aircraft relative factors and Aircraft price that may reach to 95% and
accordingly we can apply minimum least square analysis to find the best line fit to
create a Reference Line as it is indicate by figure no. ( 3 ), Witch split the area into
two parts of these
aircraft's Airbus and
Boeing.
Consequently we can
define which the best
aircraft and according
to the figure no. (3)
we will find that
A320 own more
favorite relative value
than B737-800 and
with less purchasing
value than B737-800
while if we compare
Figure No. ( 3 )
A320 with B737-700
we will find that the
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5. price of B737-700 is less than A320 but don’t reach to technical relative values of
A320, so by referring to the prices of both aircraft's, we will find the B737-700 does
not reflect a good position of A320 due the difference in prices which may support to
re-position the aircraft for a good level.
Summary:
Value Analysis define clearly the effective and favorite technical factors of aircraft's
and its relation to its prices by splitting the area of the graph for two main regions
according to the aircraft sampling used and its related category so the first region –
Attractive – which characterize by a lower price and high effective factors while the
second region – Disappointment – which characters by a high price and less effective
factors. That obviously clear by the comparison between A320 and B737-800. Also
the analysis can be improve by giving more certain different weights as aircraft
capacity, speed of aircraft, and MTOW. All these weight factors will impacts the final
results to enhance the decision to purchase the right aircraft.
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