The Economics Of Airplane Models

March 20, 2015 in Daily Bulletin

Scott Mayerowitz explained the importance of model airplanes in the airline industry:

  • Models of commercial airplanes – typically between one and two feet long – are used to initiate sales conversations or close deals.
  • They can pique the interest of the buyer. Executives will go in to make a sale with high quality models of the planes they’re trying to sell.
  • They’ll then leave the planes with the potential target as they’re more memorable than simple business cards, and unlike other gifts, usually are displayed prominently instead of locked in a closet.
  • Airbus, one of the two leading aircraft manufacturers, took in orders for about 1,500 airplanes last year and ordered 30,000 models of its aircraft.
  • The models first became popular after World War 2 when companies tried to encourage travelers to try flying on an airplane.
  • The models – often with an interior cut out – helped potential passengers understand what the flying experience would be like.
  • One major company sells models costing up to $1,500 each. All in all it sells 15,000 models, generating revenues of $10 million a year.

Read more about the practice, see some photos showing how the models are made, and find out other details here.

Source: Associated Press