Airline profits - Volume I - Issue 1 - February 2015

Page 1

Volume I—Issue 1

A Magazine for Aviation Leaders & Influencers

www.airlineprofits.com

FEATURED

Can we re-inspire the industry with the Spirit of Kitty Hawk? More articles inside...

42 Consecutive Years of Profits: How Do Southwest Airlines Do It?

Release date: February 2015

Is the Bombardier CSeries Still a Game Changer?

Is the Airline Community Looking At the Right Profitability Drivers?



Volume I—Issue 1

February 2015

Airline Profits

Contents 6

Editorial : Let’s Make It Happen!

12

Profile: A Brief Visit With Your Editor

18

Perspective: Is the Air lin e Com m un ity

Looking at the Right Profitability Drivers?

24

Performance: 42 Con secutive Y ea r s of Pr ofits : How Does Southwest Airlines Do It?

32

Philosophy: Ca n W e Re -inspire the Industry

With the Spirit of Kitty Hawk?

36

Product: Is the B om ba r dier CSe r ies Still a Game Changer?

www.airlineprofits.com

3


HEAD OF PROGRAMS:

Kofi Sonokpon

All rights reserved. No part of this publication may be reproduced, duplicated, stored in any retrieval system or transmitted in any form by any means without prior written permission of the Publishers.

kofi.sonokpon@airlineprofits.com

Airline Profits is r elea sed bi-monthly in February, April, June, August, October and December.

PUBLISHED BY: Airline Profits Publications

CP 53506 CSP Norgate Saint-Laurent, QC, Canada

H4L 5J9 info@airlineprofits.com

Airline Profits is a v a ila ble in m u ltip le fo r m a ts: o nline, m o bile, digital and print. The online and mobile version are free to all aviation and non-aviation subscribers. Digital and print formats are chargeable based on an annual subscription. For more information about the various subscription packages offered, visit www.airlineprofits.com Airline Profits is a tr a d em a r k of M a ck so n Av ia tio n.

©2015 Airline Profits ISSN 2368-7800 (Print) ISSN 2368-7819 (Online)

www.airlineprofits.com SPECIAL CREDITS:

Lorne Bromley ● Nathalie Nyangono ● Naomi & Johanna Sonokpon



Airline Profits

February 2015

Volume I—Issue 1

Editorial Let’s Make It Happen!

"If God had wanted men to fly, He would have given them wings." Now, before you start laughing out loud, it would be worthwhile to remind yourself that this statement captured in essence the state of mind of the vast majority of people when the Wright brothers were working relentlessly to get their first flying machine off the ground.

There is much to say about the ignorance wrapped up in such a statement, but let's stay on course. As you of course know, history has a stubborn tendency to repeat itself, despite all the rich lessons learned it brings along. While the majority of people were concerned about the so-called limitations of mankind, Wilbur and Orville Wright were focused on how they could tap the

6

Given the tremendous value airlines contribute collectively to the world economy, what is preventing the industry from generating more revenues and becoming sustainably profitable? vast, powerful and endless potential of the human mind in order to innovate and create. While many of their contemporaries could only see what mankind doesn't

www.airlineprofits.com

have, the Wright brothers focused on what mankind does have, that could be

exploited to best advantage.

While many saw impossi-


Photo Credit: Envato Photodune

bilities, they sensed a world of endless possibilities. The fact that no one had ever flown a powered, heavier than air machine before them, was the very reason why they should make it happen, to open a new window of opportunities for humanity. And they did.

Airline Profits

Today, just about a century later, it seems that the scarcity mentality that prevailed in the 1900s has permeated the airline industry, rendering it mostly unprofitable. The recent wave of profits reported since 2010 seems to be just an exception and not the rule. Airline business appears to be a synonym for

February 2015

huge losses, while the proponents, meaning the airlines, seem to enjoy the game of fare competition and battle for slots and capacity. The mentality of abundance, which will undoubtedly turn the tides and render the industry more stable and profita-

Volume I—Issue 1


Airline Profits

February 2015

Volume I—Issue 1

Editorial profitable, can only come into play if current and future aviation leaders consider a world of possibilities and of frank cooperation, instead of focusing on constraints and limitations.

It does take a different kind of leadership, which implies a new vision and the courage to ask the following key question: Given the tremendous value airlines contribute collectively to the world economy, what is preventing the industry from generating more revenues and becoming sustainably profitable? The tendency has been to blame it on fuel price, economic outlook and the cyclical nature of the business, etc.

8

This is widely accepted as the norm. However, it is high time for airline leaders to come together and ask the challenging so-what question: How can we make it happen, despite all of the known shortcomings and constraints of the airline business?

The purpose of Airline Profits is to raise that kind of awareness among aviation leaders and influencers in order to promote a more profitable airline industry. If you are reading this, we do anticipate that you have a passion for aviation, so we invite you to join the

It is high time for airline leaders to come together and ask the challenging so-what question: How can we make it happen, despite all of the known shortcomings and constraints of the airline business? Referring back to the Wright brothers, it is was this type of so-what or why-not questioning that drove them to their outstanding accomplishment.

www.airlineprofits.com

movement and spread the word. Kofi Kofi Sonokpon, MBA editor@airlineprofits.com


Formula for Success

“My formula for success is:

Vision + Determination + Adversity + Perseverance = Success.” — Kofi Sonokpon

Airline Profits

February 2015

Volume I—Issue 1


“ None of us, acting alone, can

achieve success. ― Nelson Mandela

Airline Profits

www.airlineprofits.com

@AirlineProfits



Airline Profits

February 2015

Volume I—Issue 1

Profile A Brief Visit With Your Editor

Dear reader, Many thanks for subscribing to Airline Profits. Beyond my public profile you may have read on LinkedIn, I owe you a brief introduction so that you get to know me better. As reported in THE im POSSIBLE FLIGHT, my first non-fiction book, I was four

years old when my father offered me a toy airplane. Little did he know, I suppose, how that gift would influence me later on. Some 19 years later against any anticipation, I landed my first job as a trainee with Air Afrique, a multinational airline; a precursor of airline alliances as we know them today. Needless to say I instantly fell in love with the fascinating world of aviation and became determined to make a sig-

12

I am convinced that this magazine is the fruit of my passion and my burning desire to see a sustained and profitable airline industry in my lifetime.

nificant contribution to pushing the industry forward. Whether I have remained faithful to that purpose or not, I am sure time will tell. However, I am convinced that this

www.airlineprofits.com

magazine is the fruit of my passion and my burning desire to see a sus-

tained and profitable airline industry in my life-

time.


Since then, I have had the privilege to meet and work with some of the best minds in the aviation industry from all continents, be it in person, online or offline. I have either directly or indirectly dealt with major aircraft and equipment manufacturers, airlines and suppliers. I have also had the privilege to lead the coordination of effort in the framework of large scope initiatives, which resulted in significant cost savings for the industry. However, deep inside me, I knew that my best contribution was yet to come.

Kofi Sonokpon. Editor & Head of Programs, Airline Pro fi ts magazine Photo Credit: Magenta

Some six years after my first assignment as an avionics engineering trainee at Air Afrique and with much struggle, I completed a master of business administration (MBA) degree in international aviation from the John Molson School of Business at Concordia University in Montreal (Quebec), Canada.

Airline Profits

February 2015

My commitment to continuously improve myself in order to become more useful to myself and to others has driven me to learn more about inventors and leaders of the past and the present. In the process, I have written and published several non-fiction and business books and I have inspired young people to follow sound leadership and success principles.

(continued on page 14)

Volume I—Issue 1


Airline Profits

February 2015

Volume I—Issue 1

Profile It is certainly no misstatement of fact, if I said that everything I have achieved so far and everything I shall achieve in the future, I owe directly or indirectly to aviation. Hence my passion for this industry that literally gave wings to men so they can fly as high and as far as possible. Today, some 14 years later, I have gladly taken on the challenge to launch Airline Profits, the first aviation magazine devoted to promoting a more profitable airline business. I am deeply convinced that the industry deserves to get a fair share of the huge contribution it has been making to the global economy for over a century. That would entail more and better opportunities for aviation workers and an

14

even stronger contribution to the world economy. It is possible to achieve that distant milestone, yet this cannot be done single -handedly. Therefore, I would like to seize this unique opportunity and ask for your support.

As you will notice by going to the website, there are different subscription packages available, so you can choose the one that best suits your needs. And it only takes on average three (3) minutes or so of your precious time to sign up. As a leader or an influencer, your subscrip-

Everything I have achieved so far and everything I shall achieve in the future, I owe directly or indirectly to aviation. Hence my passion for this industry that literally gave wings to men so they can fly as high and as far as possible. In case you have not done so yet, all you need to do is simply go to

www.airlineprofits.com and sign up for Airline

Profits.

www.airlineprofits.com

tion to Airline Profits is important and does mean a lot for the future of the aviation. Once you have done so, would you mind recommending the publication to others?


Vision

“Having a vision is like having a clear destination in mind. Without that,

you may wander and run out of gas on your way to success.”

— Kofi Sonokpon

Airline Profits

February 2015

Volume I—Issue 1


“ The secret of success is constancy

of purpose. ― Benjamin Disraeli

Airline Profits

www.airlineprofits.com

@AirlineProfits



Airline Profits

February 2015

Volume I—Issue 1

Perspective Profits Outlook: Is the Airline Community Looking at the Right Profitability Drivers?

It was December 10, 2014 when Tony Tyler, the Director General of IATA, the trade association representing some 200 airlines worldwide, announced the good news everybody was expecting. The renowned body not only anticipated a better financial performance for 2014: a US $19.9 billion instead of the 18.0 billion initially predicted, but

also an even greater increase to $25 billion in airline profits for 2015. The main reason behind this optimistic projection is the fact that the price of crude oil is going down, thus lowering the cost of jet fuel, which represents some 26% of airline operating costs. Another important factor mentioned was the perceived economic recovery after a steep downturn. The good news quickly

18

Given the price elasticity of demand for air transport, this means that more people would likely travel, therefore airlines would be able to generate more revenues.

spread around the globe thanks to several media outlets posting optimistic headlines about airline profits going up. But, this is not all. The announcement by IATA also con-

www.airlineprofits.com

tained other good news: passengers would also benefit from lower air-

fares in 2015. Given the price elasticity of demand

for air transport, this


Photo Credit: Envato Photodune

means that more people would likely travel, therefore airlines would be able to generate more revenues.

stronger demand could well mean slightly higher prices, this is not necessarily true for air travel. The vast majority of trav-

passengers, provided it has enough capacity to meet the demand, hence the popularity of low cost carriers (LCC) and ultralow cost carriers (ULCC).

Now while a stronger

ellers, who travel for lei-

economy generally im-

sure are attracted by

As a result, airline busi-

plies that consumers

cheap airfares. So the air-

ness has grown into a

would be willing to spend

line that can offer cheaper

battlefield on fares. A pre-

more money, thus a

fares would like entice

ferred strategy is to

Airline Profits

February 2015

Volume I—Issue 1


Airline Profits

February 2015

Volume I—Issue 1

Perspective match fares as much as possible. Major carriers who could not lower their fare below their breakeven point, have since founded their LCC subsidiaries in order to protect their market share.

And while airline revenues may indeed increase thanks to stronger demand for air travel as a result of lower fuel cost, the ability to charge reasonable airfares in order to get a higher yield and thus maintain a lower breakeven point is extremely limited, as far as airline business is concerned. Still according to IATA, the current average yield is around $7 per passenger and the average profit margin is less than 4%.

20

Now, let's refer to the basic profitability equation: profit = revenue costs. Whereas the anticipation of lower unit cost or cost per available seat mile or kilometer (CASM or CASK) is welcomed as great news, airlines have very limited room to increase their unit revenue

lity to generate higher unit revenue as well as its ability to control unit costs. In conclusion, it is worthwhile for aviation leaders and influencers to ask individually and collectively the following important and vital question: is the

A crude fact remains though that for a business to thrive and sustain profits, it has to have control over its ability to generate higher unit revenue as well as its ability to control unit costs. or revenue per seat mile or kilometer (RASM or RASK). A crude fact remains though that for a business to thrive and sustain profits, it has to have control over its abi-

www.airlineprofits.com

airline community focusing on the right drivers when it comes to ways to increase and sustain profits?


Determination

“A key component for success is Determination, because effectiveness

lies not in our dreams or words, but in our actions.”

— Kofi Sonokpon

Airline Profits

February 2015

Volume I—Issue 1


“ Gratitude is not only the greatest of virtues, but the parent of all the others.

― Sir Winston Churchill

Airline Profits

www.airlineprofits.com

@AirlineProfits


Data analytics in real time from information streaming through sensors connected to aircraft mechanical and electronic components is producing opportunities for new products and services. For industrial manufacturers of physical assets, new revenue streams from the Internet of Things is revolutionizing the industry. Our research shows that airlines can become more profitable and cut costs by integrating digital transformation and data analytics into all their business functions. Airlines that traditionally operate on razor thin profit margins are extracting new revenue models from data analytics integration. For more information and access to comprehensive reports on data integration in the airline and MRO industries, simply visit our website.

www.thedataminingcompany.com


Airline Profits

February 2015

Volume I—Issue 1

Performance 42 Consecutive Years of Profits:

How Do Southwest Airlines Do It? Gary Kelly, current President and CEO of Southwest Airlines has clearly established by his own track record that he was indeed the right man for the job. He definitely met the tall challenge of finding a suitable successor to the legendary Founder and Chairman Emeritus, Herb Kelleher. For over four decades now, Southwest ÂŽ has turned in

profits every single year. Tough competition? Hostile environment? Deregulation? Technical Issues? Lack of slots? Oil price fluctuations? Economic downturns? 9/11? Depression? And you name it. They have successfully met them all. At this point, the right question to ask is not "how did they do it?" but rather "how do they do it?" In an industry where

24

In an industry where huge losses and bankruptcies are frequently reported in the news, Southwest Airlines (SWA) has managed to post profits for 42 consecutive years. And they are likely to keep that going. huge losses and bankruptcies are frequently reported in the news, Southwest Airlines (SWA) has managed to post profits for 42 consecutive years. And they are likely to keep

www.airlineprofits.com

that going. Is this pure magic? Is this due to luck? Is this some accounting gimmick? All these questions have a single and well deserved answer: a big "NO".


October 13 2014. Southwest Airlines Celebrates Love Field's Freedom To Fly. Southwest Airlines CEO Gary Kelly closes the airc raft door on the first non-stop flight out of Dallas Love Field. The Wright Amendment ended on Monday, Oct. 13 2014, allowing non-stop flights to anywhere in the U.S. from Dallas Love Field. Photo Credit: Stephen M. Keller, 2014

How do they make it hap-

seems to indicate that

pen every single time?

Southwest Airline has

How are they able to pull

purposefully set yearly

it off? These are valid and

profitability as a clear

important questions that

goal. Such a solid and sus-

other players in the indus-

tained performance is cer-

try should be asking.

tainly not due to chance.

While the purpose of eve-

Moreover, this seems to

ry business should be to

have passed the stage of

make money, everything

an art, SouthwestÂŽ is gi-

Airline Profits

February 2015

ving the impression to have cracked the code to airline profitability. The Dallas, TX based company, listed on the New York Stock Exchange (NYSE) as LUV, could well boast about mastering the science of airline profits. As curious onlookers, we might as well wonder: what is behind

Volume I—Issue 1


Airline Profits

February 2015

Volume I—Issue 1

Performance their outstanding success? Is this due to their business model? Is it because they are in the right market with the right product at the right time? Is it because they are just luckier than every other airline?

The answer to all that is once again a big and resounding "NO". Researchers Jim Collins and Morten T. Hansen discussed that in their bestselling book: Great by Choice – Uncertainty, Chaos, and Luck – Why Some Thrive Despite Them All. But then what is it that is making them so successful and that seems to set them clearly apart from the crowd? An answer to that question was given a while ago by Herb Kelleher and was related by Kevin and

26

Jackie Freiberg of the San Diego Consulting Group in their national bestseller: NUTS! - Crazy Recipes for Business and Personal Success. While most companies including airlines profess to put their customers or shareholders first,

the same way. In other words, they make it a strongpoint to find and hire the right people and put them in the right seats. Gary Kelly is reported to take pride in the fact that not a single employee of Southwest Airlines has been furloughed since the foundation of

Southwest Airlines is one of the rare companies that openly say and do put their employees first...they make it a strongpoint to find and hire the right people and put them in the right seats. "They hire for attitude and train for skill". Any leader who truly un-

the company nearly 44 years ago.

derstands something

They also seem to understand that the way you treat your employees has a direct bearing on how

about human nature would definitely proceed

www.airlineprofits.com


September 15 2014. Southwest Heart One. Southwest Airlines Unveils New Look with Heart. Photo Credit: Stephen M. Keller

they would treat your customers. Any company, like Southwest® that truly put their employees first, in practi-

cal terms and not as a mere catch phrase, also embraces the paramount necessity of creating and maintaining a strong win-

win organizational culAirline Profits

ture. The founders or leaders of such companies espouse the basic principle that the aggregate mindset of a given organization can only be the amplified, sum total of the mindset of each member of that organization. Airline Profits, being the

February 2015

first aviation magazine devoted to promoting a more profitable airline industry, we hope that more airline leaders would show their boldness by making it a point to appropriate some best practices from Southwest® and commit to implementing them in their own organizations. And why not

Volume I—Issue 1


February 3 2014 Southwest Airlines Announces 15 New Non-Stop Destinations from Dallas Love Field Gary Kelly, Southwest Airlines Chairman, President and CEO, announces new non-stop destinations from Dallas Love Field.

challenge themselves to outperform Southwest Airlines? It is a fact that we can always learn something from those who are doing better than us as well as those who are doing worse than us.

As far as airline business is concerned, Southwest Airlines have clearly and strongly established themselves as a leader and role model that any air carrier that is serious about making sustained profits should emulate.

As far as airline business is concerned, Southwest Airlines have clearly and strongly established themselves as a leader and role model that any air carrier that is serious about making sustained profits should emulate. 28

www.airlineprofits.com


Adversity

“Adversity is essential for success, because that is when you are tested

to find out whether you are serious about your desire and truly committed to turning that into reality.” — Kofi Sonokpon

Airline Profits

February 2015

Volume I—Issue 1


“ Men are rich only as they give. He who gives great service gets great rewards.

― Elbert Hubbard

Airline Profits

www.airlineprofits.com

@AirlineProfits



Airline Profits

February 2015

Volume I—Issue 1

Philosophy Can We Re-inspire the Industry With the Spirit of Kitty Hawk?

For those who are familiar with the history of aviation, the name Kitty Hawk, North Carolina is invariably and strongly linked to that of the Wright brothers. That was the closest town to Kill Devil Hills, the strategic location where Orville and Wilbur Wright had chosen to conduct their hazardous flight experiments. On December 17, 1903,

after making their first controlled, powered flights, the two brothers were reported to have gone to Kitty Hawk to send a telegraph to their father (one of the early skeptics) about their success. What got them started and more importantly, what kept them going for many years? After many so-called failures, they finally succeeded, despite the lack of support and

32

Orville and Wilbur Wright were courageous and determined enough to start and achieve something new. Even though they were obviously not qualified to do so: it would be worthwhile to point out that they were bicycle mechanics . the skepticism of the majority who said "it cannot be done, because it had never been done before." It has been reported that not a single media reporter was there to cover the

www.airlineprofits.com

very first airshow, organized by the two brothers. Today, over a century later and with larger commercial aircraft types like the Boeing 747, the Airbus


Photo Credit: Envato Photodune

A380, the Embraer ERJ and the much awaited Bombardier Cseries, we may tend to neglect the significance of the spirit that prevailed at Kitty Hawk.

has shortened distances, created tremendous economic value and more importantly forged lasting relationships that simply could not have existed.

they were obviously not qualified to do so: it would be worthwhile to point out that they were bicycle mechanics and not

aerodynamics engineers. The Wright brothers experienced a major breakthrough that has significantly transformed the way we live and work,

Airline Profits

Orville and Wilbur Wright were courageous and determined enough to start and achieve something new. Even though

February 2015

In spite of the fact that no

one had done something like this before. Despite the lack of qualifications

Volume I—Issue 1


Airline Profits

February 2015

Volume I—Issue 1

Philosophy and support, amidst the criticism and skepticism, the only thing that counted for the Wright brothers was the fact that they wanted to do it, they knew it was on them and they were determined to make it happen. The airline business is only a by-product of that courage, determination and perseverance in the face of tremendous challenges and adverse conditions.

For anyone familiar with the airline business, the lack of profitability is a major challenge facing the industry. Hundreds of millions of dollars, if not billions in losses are reported each year. The well -known exception is Southwest Airlines, a company that embodies the Spirit of Kitty Hawk.

34

SouthwestÂŽ has proven beyond any doubts, over the last 42 years, that it is indeed possible for an airline to turn in profits every single year. Many books have been written about Southwest Airlines and the type of leadership and culture,

specifically dedicated to promoting a more profitable airline industry, we have one key question and that is: can we reinspire the industry with the can-do Spirit of Kitty Hawk? In other words, is it possible to achieve and sustain profitability, regardless of constraints

The well-known exception is Southwest Airlines (SWA), a company that tends to embody the Spirit of Kitty Hawk. SouthwestÂŽ has proven beyond any doubts, over the last 42 years, that it is indeed possible for an airline to turn in profits every single year. which prevails within the company. The attempt here is not to revisit what

was discussed in literature. However, as Airline

Profits, the first magazine

www.airlineprofits.com

inherent to airline business? If Southwest Airlines can consistently turn in profit, why can't the rest of the industry do the same?


Perseverance

“The keyword for success is Perseverance, because Quitters never win and

Winners never quit!” — Kofi Sonokpon

Airline Profits

February 2015

Volume I—Issue 1


Airline Profits

February 2015

Volume I—Issue 1

Product Is the Bombardier CSeries Still a Game Changer?

While the airline industry and the general public have welcomed the good news of oil price and airfares going down, an important question is surfacing, namely: is the Bombardier CSeries still a game changer? As Airline Profits is on a mission to promote a more profitable airline industry, this is a pertinent question that we would like to

weigh in on. Back in March 2005, the board of director of Bombardier granted authority to launch the clean sheet design aircraft program and offer the CSeries to customers. The market reacted favorably to the idea of introducing a new generation aircraft. The intent was to fill the gap between larger airliners (150 plus seaters) and smaller aircraft with less

36

The very promising, fuel efficient and environmental friendlier CSeries appeared to respond well to the challenge airlines have, to constantly seek ways to minimize their jet fuel and overall operating costs. than 100 seats. The very promising, fuel efficient and environmental friendlier Competitive Continental Connector better known as the CSeries appeared to respond well to

www.airlineprofits.com

the challenge airlines have, to constantly seek ways to minimize their jet fuel and overall operating costs. Smartly positioned as a game changer, the CSeries


The CSeries airliner flying in a clear sky, above the clouds. Photo Credit: Bombardier

was also going to offer some significant advantage in terms of aircraft maintenance costs. At the launch of the program, Bombardier projected a target 15% reduction in overall operating costs. Simply put, on one hand, this new aircraft was going to give Bombardier,

Airline Profits

the Montreal-based airframe manufacturer, a distinctive advantage over Embraer, its direct competitor in the commercial aircraft segment. On the other hand, the company appeared to be strategically expanding beyond the now crowded regional aircraft market, into an uncharted and promising

February 2015

niche that Boeing and Airbus, the big players had left void. The rather reactive responses from the other airframers to counter the perceived threat posed by Bombardier was a strong signal that if left alone, the CSeries was indeed going to change the game signifi-

Volume I—Issue 1


Airline Profits

February 2015

Volume I—Issue 1

Product cantly. For instance, the plans by Airbus and Boeing to re-engine some existing aircraft models seemed more like a hastened, quick response to a surprise competitive attack.

Today, February 2015, about 10 years since the official launch of the then highly praised program, the CSeries has gone from the concept and design phases into production and advanced flight test stages. Like any other new aircraft program, the entry into service (EIS) of the Com petitive Continental Connector has met with and been delayed by several unforeseen events. It is almost five years late over its initially planned EIS date of 2010. While the drop in oil price

38

and the possibility of airfares going down as well as the anticipation of airline profits reaching a record US$25 billion this year are extensively reported in many headlines, airline leaders and influencers would do well not to be sidetracked by the delays experienced by the CSeries

costs and thus in overall operating costs? If an objective and redeeming answer is an unequivocal "YES", then, the Bombardier long haul aircraft is still a game changer despite the response from its competitors. Therefore, the temp-

Will the CSeries increase potential savings in jet fuel costs, maintenance costs and thus in overall operating costs? If an objective and redeeming answer is an unequivocal "YES", then the CSeries is still a game changer. program, but rather focus on the following essential question. Will the CSeries increase potential savings in jet fuel costs, maintenance

www.airlineprofits.com

tation of using lower oil price as a rationale to justify keeping fuel-guzzler airplanes longer in their fleet and delaying the acquisition of more fuelefficient aircraft like the


The CSeries airliner flying in a clear sky, above the clouds. Photo Credit: Bombardier

the CSeries, simply does not make any economic sense and would prove to be a short-sighted strategy in the long run. As we all know, airlines have no control over the price of oil. For instance, oil price has more than doubled over the last decade (going from $40 per barrel in 2004 to over $100 about seven years later). And no one can guarantee that the current lower pricing will remain at that level for long.

With recent updates about the solid progress of its flight test program, which resumed last year, pessimistic headlines in the news are a good indication

The temptation of using lower oil price as a rationale to justify keeping fuel-guzzler airplanes longer in their fleet and delaying the acquisition of more fuel-efficient aircraft like the CSeries, would prove to be a short-sighted strategy in the long run. that the market is anxiously waiting to welcome the prestigious, game-changing CSeries airliner into service. So, Bombardier: make it happen. www.airlineprofits.com

39


“ To speak gratitude is courteous and pleasant, to enact gratitude

is generous and noble, but to live gratitude is to touch Heaven. ― Johannes A. Gaertner

Airline Profits

www.airlineprofits.com

@AirlineProfits


You can also access to this form online at www.airlineprofits.com/speaking

Speaking Engagement—RFQ YES. I understand that this is not a speaking agreement, but a request for quote to help us make a booking decision.

Select the program(s) you are interested in:

Specify your contact information below:

The 4 Step Formula for Personal & Business Success

Mrs.

Achieve More & Faster Results With Your Team

First Name

The 4 Pillars of Effective and Enduring Leadership

Last Name

3 Fundamental Strategies to Sustained Profitability

Get Your Team to Deliver Beyond Expectations On Becoming An Effective Leader

Ms.

Mr.

Dr.

PhD.

Email Title School or Institution

The 6-Word Criteria to Identify True Talents

City/Town

An Introduction to International Aviation

Province/State

Essentials to Managing Aviation Projects

Phone

Preliminary details about your group:

Preliminary details about your event:

Anticipated Group Size

Tentative Date 1 (DD/MM/YY) 20-40 Morning

Afternoon

500 or More Opening Keynote

40-60

60-80

80-100

Evening Other:

Closing Keynote Anticipated Budget per Participant (Fee + Expenses)

1/2 Day Workshop

1 Day Workshop

$100 or Less

$100—150

$150—200

Tentative Date 2 (DD/MM/YY) $200 or More Morning Opening Keynote

1/2 Day Workshop

Airline Profits

Afternoon

Other:

Evening Closing Keynote

1 Day Workshop

Signature

Date (DD/MM/YY)

Please return a scan or a picture (PNG or JPEG) of this signed form to us via email to speaking@airlineprofits.com . You will receive a response via email within 24-72 hours.

Conference & Training Programs

www.airlineprofits.com



Have you enjoyed your copy of Airline Profits? The next issue will be even more informative and interesting to read. If you have not done so yet, sign up today by simply visiting

www.airlineprofits.com


www.airlineprofits.com


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.