## 4 Case Study Results
### The Core Elements of AeroLogic's Business Model
#### 4.4.1 AeroLogic's Freighter Aircraft Type and Fleet Requirements  
In the global air cargo industry, there are certain drivers of each airline's dedicated freighter fleet strategy. Global shipping trends, noise and emission standards, aircraft reliability, and how the fleet fits into the airline's business model are of fundamental importance. Importantly, airlines plan their aircraft fleet in terms of years and even decades ahead. Key selection requirements include the evaluated aircraft's mission, flexibility of new or used aircraft, fleet commonality, engine and parts availability, and whether the aircraft satisfies all regulatory requirements [119]. Other key factors considered include the aircraft design density, access door dimensions, fuselage cross-section and aircraft weights [120; 121], payload/range performance, and freighter operating costs, including fuel and capital costs [122]. After an intense review of its requirements--which included aircraft capacity, fuel consumption, environmental friendliness, market availability, and aircraft range--AeroLogic selected the Boeing 777-200 LRF aircraft [123]. Aimed at the large freighter market and launched in May 2005 on the back of the newly-available Boeing 777-200 LR airframe/engine combination [124], the Boeing 777-200 LRF aircraft has a revenue payload capability of 112 tons (102 metric tons) [125]. The economics of the aircraft are extremely favourable with cargo density identical to the Boeing B747-400F, and 18% lower fuel burn than the Boeing B747-400F. The Boeing B777-200 LRF freighter aircraft can carry its full cargo load over a range of 9070 kilometres [126], which enables non-stop flights from AeroLogic's home base at Leipzig/Halle Airport, Germany, to key Asian growth markets, thereby reducing the elapsed time of shipments [127]. AeroLogic [115; 128] also states that due to its ultramodern technology, the aircraft is not only reliable and cost-efficient, but also low-maintenance and low-emission. AeroLogic originally placed an order for 11 Boeing B777-200 LRF aircraft that were due to be delivered by the end of 2012 [94; 104]. However, the company scaled back its fleet plans due to declining world air cargo volumes and decided to deploy a fleet of eight Boeing B777-200 LRFs instead [129]. The first of AeroLogic's eight brand-new Boeing 777-200 LRF freighters arrived at Leipzig/Halle Airport on 13 May 2009. The aircraft was the first Boeing 777-200 LRF freighter aircraft registered in Germany. AeroLogic's second aircraft was delivered in July 2009, with the third and fourth aircraft delivered in December 2009. The remaining four aircraft were delivered to Aerologic in 2010 [130]. Following the delivery of its first aircraft, AeroLogic was required to complete a certification process and acquire its operating license from Germany's Federal Office for Civil Aviation. This was followed by tests and training courses in the areas of maintenance and ground operations, as well as flight operations, prior to the planned launch of AeroLogic's scheduled services on 29 June 2009. At the time of the present study, AeroLogic had a fleet of ten Boeing B777-200 LRF aircraft. The key specification of AeroLogic's Boeing B777-200 LRF aircraft are presented in Table 3.  
An airline can purchase aircraft outright or acquire them through rental (leasing) agreements [132; 46]. The AeroLogic joint venture partners will lease, rather than purchase, their fleet of eight Boeing B777-200 LRF freighter aircraft [133; 134]. On 28 January 2008, Boeing Commercial Airplanes announced that Deucallion Capital VII, a company advised and managed by DVB Bank AG, had purchased eight Boeing B777-200 LRF freighter aircraft for lease to AeroLogic. The aircraft order was valued at around $USD 2 billion at list prices [135]. DVB lent $USD 600 million for the aircraft pre-delivery payments. The aircraft have been