Aircraft manufacturers are in the midst of a massive wave of new model rollouts. For the most part, these next-generation airplanes are touted for offering big fuel efficiency gains over their predecessors.
However, in some cases, the improved performance of new airplane models is opening up huge, new business opportunities. That’s the case for Hawaiian Holdings (NASDAQ:HA), thanks to the improved range of Airbus‘ (NASDAQOTH:EADSY) A321neo. The even greater range of the Airbus A321LR could have a similar transformative impact at JetBlue Airways (NASDAQ:JBLU).
Hawaiian Airlines bets on the A321neo
For decades, Hawaiian Airlines has relied on wide-body aircraft for all of its routes to the U.S. mainland, and more recently, its international flights. Several other airlines use narrow-body planes like the current-generation A321 for West Coast-Hawaii flights. However, those planes can’t always make the trip to Hawaii when fully loaded.

Today, Hawaiian Airlines uses wide-body aircraft for all of its mainland flights. Image source: Wikimedia Commons.
The A321neo’s superior fuel efficiency gives it hundreds of miles of additional range, allowing it to comfortably reach Hawaii from any West Coast city. That’s why Hawaiian Airlines ordered 16 A321neos from Airbus in 2013.
Hawaiian Airlines believes that the A321neo will provide the lowest unit costs of any airplane for West Coast-Hawaii flights. As the A321neo replaces less efficient widebodies on West Coast routes, the company will become an even more formidable competitor there.
Due to its smaller size (relative to
Article source: http://www.fool.com/investing/2016/09/25/new-aircraft-technology-could-transform-these-2-ai.aspx

