Flying Different….. The Boeing 787 Dreamliner
In a few more weeks, air travel would be revolutionized by the arrival of the Boeing 787 Dreamliner aircraft. After nearly three years of delay, the aircraft’s maiden passenger flight would be operated by All Nippon Airways, (ANA) from Tokyo to Hong Kong. The reason behind all the buzz of this aircraft is due to the major technological advancement in the production and operation of aircrafts.
The Boeing 787 Official Website
As quoted from the article, “It’s the first of a new generation of aircraft that despite more than three years of delay holds the promise to fly faster, farther and with more fuel efficiency and passenger comfort than predecessors.” (Los Angeles Time, 2011)
Those wishing to get insights regarding the new aircraft can follow this link.
The major improvement of the aircraft makes it a lucrative investment for airlines from all around the world. This ties into the component of finance that was discussed in class.
When companies decide on their investment decisions, they will certainly turn to the concept of time value of money. (TMV) The fact that investing in such a huge sum of money requires careful weighing of the returns that can be reaped. The analysis that was done by the airline definitely indicated that investing in the money now would be better off putting it in the bank and earning interest. (Considering the cost savings and revenue that is derived) Thus, the investment was made by ANA.
Video that explains the basic concept behind the time value of money (TVM)
With more and more companies investing in Boeing 787, it would become the future face of passenger aircrafts.
Article Source: Hennigan, W.j. “Boeing 787 Dreamliner the First of a New Generation of Aircraft.” Los Angeles Times [Los Angeles] 1 Oct. 2011. Los Angeles Times – California, National and World News – Latimes.com. Los Angeles Times, 1 Oct. 2011. Web. 04 Oct. 2011. <http://www.latimes.com/business/la-fi-cover-jet-revolution-20111002,0,7915062.story>.
Picture Source: Source of ANA Boeing 787 Dreamliner Picture