The Concorde Saga
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Case Code: BSTR084 Case Length: 13 Pages Period: 1976 - 2003 Pub Date: 2004 Teaching Note: Available |
Price: Rs.400 Organization: British Airways, Air France Industry: Airlines, Countries : France, UK Themes: Differentiation |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
The Concorde Experience
Flying the Concorde was a unique and thrilling experience. Because it flew at a height greater than subsonic jets, people were flown to what was called 'the edge of space'. They actually flew to the edge of the stratosphere, where conditions were very different from what they were lower in the atmosphere, closer to earth.
People who flew Concorde waxed rhapsodically about the sky, which make out the curvature of the earth and the line dividing day and night as the earth rotated. These were experiences that were normally available only to military pilots and astronauts. But the Concorde brought these 'out-of-the-world' experiences within the reach of common people. Another unique aspect of the Concorde was its speed. Passengers recounted their thrill at breaking the sound barrier and the sonic boom. The speed at which Concorde flew also transported people to their destinations twice as fast as subsonic aircraft. "Arrive before you leave" was a punch line used by Concorde....
The Problems With Concorde
Despite its many advantages, Concorde did not really catch on in a popular way. One of the important reasons for this was the exorbitant prices of Concorde tickets, which made it the exclusive privilege of the rich. A one way ticket from London to New York on the Concorde cost about $5000.
An analyst said he could fly 10 trips between the same two places for that same amount, on a subsonic aircraft. A round trip was anywhere between $ 8000 and $ 12000. The price of Concorde travel impeded its popularity, and because it was not very popular, the cost per unit remained high. It was universally accepted that Concorde was a fuel thirsty jet. It was designed in the 1960s, when there was no dearth of fuel and environmental issues had not really come into focus. However, the 1970s saw increasing tension in the oil producing countries of the Middle East. Fuel shortages and restrictions had far reaching effects on the western countries and people began realizing the importance and uncertainty of the fuel situation...
The Crash and its Fallouts
The AF Concorde crashed just a few minutes after takeoff from the Paris airport on its way to New York. The reason for the crash was analyzed as a tire burst at the time of take off, which pierced the engine located under the left wing, setting it on fire and leading to failure. Without sufficient thrust to enable it to climb, the plane veered sharply to the left, lost altitude, and crashed.
The 100 passengers, 9 crew members onboard the flight and 4 people on the ground were killed. Concorde was not the first aircraft to be involved in a crash. However, the Concorde crash had far more serious implications than the crashes of any other aircraft because the reason for the crash was directly traced to the design of the plane. Unlike most commercial jets, the Concorde's rear tires were located directly below the wing fuel tanks, and in close proximity to the engines. Two of the four tires under each wing of the aircraft were positioned just in front of the area where the engines sucked in air. Concorde also had a history of tire blowouts. It was noted that Concorde jets suffered a series of tire blowouts in early service life, including two in 1979, one in 1980 and one in 1981 at airports in the United States...
Conclusion
The withdrawal of the Concorde fleet ended an important chapter in airline history. Experts said that, this was probably the first time in aviation history when flight became slower rather than faster. The Concorde did not succeed because the market was not ready for commercial supersonic travel. No doubt there were people willing to pay huge amounts to travel faster than the speed of sound but, these small numbers did not have the capacity to justify the costs incurred in maintaining the Concorde. A project of Concorde's scale required more widespread acceptability and use to justify its operation. However, analysts felt that, although the Concorde would not operate in future, there could be a market for a project on a much smaller scale (like a 10-seater plane), providing supersonic travel to a select few customers who were willing to pay the price. There was also speculation that a successor to Concorde could be operational by around 2030...
Exhibits
Exhibit I: Supersonic Travel
Exhibit II: Concorde in Brief
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