Source: McCartney, Scott."Last Rites for a Boeing747." wsj.com, https://www.wsj.com/articles/last-rites-for-a-boeing-747-1528291568, posted6/6/2018.

Only 180 of the original Boeing747s, dubbed the Queen of theSkies, remain in passenger service. Boeing built more than1,500 of them but the 24 orders that still remain on the books are all freighters. Delta andUnited, the last U.S. airlines flying thegiant, both retired the 747 in 2018 toArizona's SonoranDesert, between Phoenix and Tucson.It's an ideal place to store airplaneslong-term, and about 120 aircraft are parked therenow, scattered across the desert floor. The dry air prevents majorcorrosion, so their parts can be used to help keep other planes flying. About50% of the retirees are stripped and sold for scrap. But some end up working for air carriers inAfrica, Asia and SouthAmerica, for whom buying a used aircraft is a lot more affordable than buyingnew, even though they are lessfuel-efficient.

The 747 revolutionized international air travel in1970, bringing affordable tickets to the masses and making it far easier to jet between continents. At thetime, aircraft design was more focused on supersonic planes such asEurope's 100-seat Concorde. Not fully believing in the passenger potential for a whale of aplane, Boeing designed the 747 with a distinctive bubble top for the cockpit so that when used to carryfreight, containers could be loaded right up to the nose of the plane. The 747 became the most identifiable plane in theskies, and a symbol of American engineering and manufacturing prowess in the 1970s and 1980s.

But its 4 engines led to theplane's descent from passenger airline service.Two-engine jets burn less fuel yet grew to closely match the747's carrying capacity. United had 374 seats on its recently retired747s; its 777s carry 366 passengers and burn25% less fuel. Airbus has also struggled with its4-engine A380 superjumbo. Over the past 12years, only 223 A380s have been delivered. No airline other than Emirates has placed an A380 order for over 2 years.

Many airlines are moving to a business model that focuses on connecting more cities directly withsmaller, morefuel-efficient planes, rather than funneling passengers through a few large hubs. As we state in thetext: "Products are born. They live and theydie."

Critical Thinking Questions

1. The 747 appears where on the product life cycle curve in Chapter2?

A.

Maturity

B.

Growth

C.

Introduction

D.

Decline

2. Why have Delta and other airlines abandoned the 747 for passengerflights?

A.

It burns a lot of fuel.

B.

Itdoesn't fit thecity-to-city business model.

C.

It has 4 engines.

D.

All of the above.

3. Retired airplanes

A.

end up working for airlines thatcan't afford new planes.

B.

are often sold for scrap.

C.

often end up in the Arizona desert.

D.

All of the above.

4. The 747 changed the airline business model in the 1970s and 1980s by

A.

carrying a large number of passengers economically.

B.

replacing the popular Concorde.

C.

charging a premium for flying in luxury.

D.

lowering fuel cost.