Volume II—Issue 8
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Profit Sharing: A Double-edged Sword for American Airlines? More articles inside...
Will Air France Maintain the Course to Profits after De Juniac?
Edition: April-May 2016
Is Ethiopian Airlines Rapid Delta Ordered up to 125 CSeries: Growth under Control? Can Bombardier Shout Victory?
Volume II—Issue 8
April-May 2016
Airline Profits
Contents 6
Editorial: W ill Air Fr ance M aintain th e Co ur se to Profits after De Juniac?
12
Profile: Panam a’s Copa Airlines: What Did the Airline Profits Sustainability Index Reveal?
18
Perspective: Is Eth io pian Air lines Rapid Gr o w th under Control?
24
Performance: Co uld Cath ay Pacific Regain Its
Record Level of Profitability?
30
Paradigm: Pr o fit Sh ar ing: A Double-Edged Sword for American Airlines?
36
Platform: Delta Or der ed th e Lar gest Fleet o f CSer ies: Can Bombardier Shout Victory?
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3
HEAD OF PROGRAMS: Kofi Sonokpon kofi.sonokpon@airlineprofits.com PUBLISHED BY: Airline Profits Publications CP 53506 CSP Norgate
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Airline Profits
April-May 2016
Volume II—Issue 8
Editorial Will Air France Maintain the Course to Profits after De Juniac? Kofi Sonokpon editor@airlineprofits.com
Despite a further decline in revenues, Air France ended 2015 on a positive financial performance, for the first time since 2010. In this edition of Airline Profits, we are reviewing what can be deemed a long and painful walk back to profitability, especially in the light of the selection of Alexandre de Juniac as the next CEO and Director General of IATA.
Scarce Profits Prior to 2015, the last time Air France posted profits was back in 2010. Even then, net profits were higher than the operating results. Operationally speaking, the airline had barely broken even.
Otherwise, over the last decade,
Over the past decade, Air France was profitable only in 2006 and 2007, with decent average margins above 5 and 3% respectively for operating and net profits, higher than the airline industry average.
the French flag carrier was profitable only in 2006 and 2007,
Revenue Fluctuations
Considering the labour agitations
with decent average margins
Revenues at Air France have con-
Air France has experienced over
above 5 and 3% respectively for
sistently fluctuated since 2006
operating
profits,
and reached the lowest point in
which were higher than the air-
2015. However, the variation ap-
line industry average.
pears to be contained between a
and
net
minima of 28 billion and a maxima of 35 billion US dollars.
6
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the past recent years and especially in 2015, posting such high revenues is certainly commendable.
Roll out of an Air France Airbus A380. Photo Credit: Air France
First Recovery Attempt
French airline with a cumulative
Second Recovery Attempt
Before going further, let’s point
of loss of more than 3 billion US
The second attempt to rebound
out that the decline in profits
dollars. However in 2010, Air
began when Alexandre de Juniac
France was able to bounce back
joined Air France as CEO in 2013.
began in 2007, after two years of positive results.
into profits with 161 million US dollars, despite a very low operating margin below 1%.. Then
The following year, the airline was able to narrow the loss significantly and almost broke even.
The year 2008 proved to be very
followed another free fall for the
challenging for the airline indus-
next three years into 2013. Over
In 2015, the Paris-based carrier
try as a whole and Air France
that period, the airline lost in ex-
finally turned the page and end-
was no exception. The free fall
cess of 5 billion US dollars.
ed the year with close to a billion US dollars in operating profits
continued into 2009 for the
and 140 million in net profits.
Airline Profits
April-May 2016
Volume II—Issue 8
Airline Profits
April-May 2016
Volume II—Issue 8
Editorial
Summary The positive financial results that Air France posted in 2015 seemed
to suggest that the French flag carrier has emerged from a long period marked with persistent losses. And compared to the preceding two years, the turnaround appears to be the result of a methodical restructuring plan, which started in 2013.
8
The second attempt to rebound began when Alexandre de Juniac joined Air France as CEO in 2013. The following year, the airline was able to narrow the loss significantly. Now, considering the fact that
one might well wonder if the
Alexandre de Juniac, the initiator
French airline will sustain the
of that restructuring will soon be
momentum toward more posi-
leaving Air France to head IATA,
tive results.
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Airline Profits
April-May 2016
Volume II—Issue 8
“ The quality of a leader is reflected in the standards they set for themselves. ― Ray Kroc
Airline Profits
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Available in Kindle Book on Amazon
Airline Profits
April-May 2016
Volume II—Issue 8
Profile Panama’s Copa Airlines: What Did the Airline Profits Sustainability Index Reveal?
In the February edition of Airline Profits, we presented our first review of Air China based on the Airline Profits Sustainability Index (APSI). This is an integrated metric, which takes into account three dimensions: People, Performance and Agility. In this edition, we are presenting another airline review on the basis of the APSI: that of Copa Airlines. Our analysis covered a period of 10 years, starting 2006 through 2015. We have also considered pieces of information available on Copa Airlines’s website and other reputable sources such as Flightglobal at the time our review was conducted.
Based on the data available as of April 2016, our analysis revealed that on a scale of 1 to 10, Copa Airlines has an Airline Profits Sustainability Index of 9.1.
Based on the data available as of April 2016, our analysis revealed that on a scale of 1 to 10, Copa Airlines has an Airline Profits Sustainability Index of 9.1.
Creation and History Founded almost 72 years ago in
June 1944 as Com pania PanaIn the next few lines, we are going to offer a breakdown of this rating. However, let’s begin with a brief overview of the company by highlighting some key facts.
12
mena de Aviacion (COPA) in Span-
The airline was initiated by local investors from Panama in partnership
with
Pan
American
World Airways (PAWA).
ish, Copa Airlines started opera-
Following a period of domestic
tions more than three years later
flights, the airline began interna-
in August 1947.
tional flights about 23 years later.
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A Copa Airlines Boeing 737. Photo Credit: Copa Airlines
As of June 2015, Copa Airlines
Copa Airlines operates a dual
Ownership,
Subsidiaries
and
became a member of Star Alli-
fleet of 85 aircraft in-service com-
Alliances
ance.
posed of: 73 Boeing 737 and 12
Copa Airlines’ equity is almost
Embraer 190. The current in-
entirely held by Copa Holdings.
service fleet has an average age
A member of Star Alliance,
Business Model, Network and
of 6.1 years. The airline also has
Copa Airlines currently has less
Fleet
73 aircraft on order.
than 10 codeshare agreements in
Copa Airlines currently serves 73
place.
destinations across the Americas,
The airline also has Copa Airlines
of which South America and
Colombia as its subsidiary.
North America account respectively for 81 and 19 percent. CONTINUED...
Airline Profits
April-May 2016
Volume II—Issue 8
Airline Profits
April-May 2016
Volume II—Issue 8
Profile Leadership, People and Operations
Performance Index The Airline Profits Performance
Copa Airlines is currently led by Pedro Heilbron, in the role of President. And as of 2015, the airline employed over 9,000 people. Headquartered in Panama City, Copa Airlines uses Panama City
Index is based on a scale of 1 to 10. Copa Airlines has a very
high Performance Index of 9.4.
Copa Airlines was profitable ten years out of ten. In addition to that, the airline has posted very high operating and net profit margins.
Five factors were considered in
With a high Agility and very
our calculation.
high Performance and People
The Performance Index has a 40% weight in the overall APSI.
indices, our primary recommendation is that Copa Airlines
Tocumen International Airport as
would do well to maintain the
its main operational base.
performance discipline they have Agility Index
Airline
Profits
Sustainability
achieve over time.
The Airline Profits Agility Index
Profile
is based on a scale of 1 to 10. Co-
As mentioned at the beginning of
pa Airlines has a high Agility
this review, our analysis covered
Index of 8.7. Fifteen factors were
a 10-year period ranging from
considered in our calculation.
profiles and ultimately the first
2006 to 2015.
The Agility Index has a 15%
Airline Profits ranking based on
weight in the overall APSI.
the APSI in a future edition of
If you like this article and are curious in finding out more, stay tuned as we share more airline
Airline Profits.
People Index The Airline Profits People Index
Summary
is based on a scale of 1 to 10. Co-
Copa Airlines’s Airline Profits
pa Airlines has a very high Peo-
Sustainability Index of 9.1 is es-
ple Index of 9.0. Five factors
sentially driven by the Perfor-
were considered in our calcula-
mance Index, which in this case
tion.
happens to be very high. This is mainly due to the fact that over
The People Index has a 45%
the past decade (2006-2015),
weight in the overall APSI.
14
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Innovation
“Innovation distinguishes between a leader and a follower.” — Steve Jobs
Airline Profits
April-May 2016
Volume II—Issue 8
“ Outstanding leaders go out of their way to boost the self-esteem of their personnel. If people believe in themselves, it's amazing what they can accomplish. ― Sam Walton
Airline Profits
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@AirlineProfits
For more information about this program contact us at: www.airlineprofits.com/contact-us
Airline Profits
April-May 2016
Volume II—Issue 8
Perspective Is Ethiopian Airlines Rapid Growth under Control?
Soon to reconnect Addis Ababa with New York (Newark) via its West-African regional hub in Lome, Togo, Ethiopian Airlines is undeniably the most successful air carrier in Africa in terms of profitability. It is also the fastest growing airline on the continent by several measures. In this edition of Airline Profits, we are offering a review of Ethiopian Airlines, in terms of financial and operational performance.
By all accounts, the national carrier of Ethiopia is growing year on year, be it by total revenue, by capacity or by traffic.
Total Revenues Starting with over half a billion
US dollars in 2006, total revenues
Starting with over half a billion US dollars in 2006, total revenues have increased year on year at an average of nearly 18% for the past decade to almost 2.5 billion in 2015.
have increased year on year at an average of nearly 18% for the past decade to almost 2.5 billion
US dollars in cumulative reve-
in 2015. This steady increase is
nues over the last ten years.
mainly supported by a consistent increase in passenger revenues. At a constant dollar value, the
Operating and Net Profits
Addis Ababa-based airline has
Both operating and net profits
generated in excess of 15 billion
remained on the up side over the same period of time.
18
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Operating Profits In terms of operating profits also known as earnings before interests and taxes, following a slight 3% decline in 2007 compared to the previous year, Ethiopian Airlines more than doubled its profits for two consecutive years
An Ethiopian Airlines Boeing 787 Dreamliner. Photo Credit: Boeing
in 2008 and 2009. The steady increase continued in
maintained its operating profits
drupled its net profits in 2008
at 195 million US dollars.
then almost tripled that in 2009. From then, profits have continu-
2010 to 106 million US dollars,
Over the same period, despite
which was five times the operat-
fluctuations, the East-African air-
ing profits posted in 2007. How-
line maintained an average posi-
three years to reach 42 million US
ever, that record was immediate-
tive operating margin close to
dollars in 2012. However, the air-
ly followed by a sharp drop by
6%, which was almost 3 percent-
line managed to bounce back and
nearly 80% in 2011. Then fol-
age points above that of the air-
nearly tripled its profits to 114
lowed a spectacular rebound,
line industry.
million in 2013 and has since then
ously declined for the following
where the airline almost tripled
kept a steady increase by yearly
its earnings the year after, ex-
average of 6.4% to reach a record Net Profits
175 million in 2015.
50% in 2013 and close to 100% in
Following a slight drop in 2007
Over that period of ten years,
2014. Despite a very slight de-
compared to the previous year,
Ethiopian Airlines has posted a
cline in 2015, Ethiopian Airlines
Ethiopian Airlines almost qua-
yearly average net profit margin
ceeded its 2010 record by almost
Airline Profits
April-May 2016
Volume II—Issue 8
Airline Profits
April-May 2016
Volume II—Issue 8
Perspective
of nearly 6%, which also beats the
2005. Average revenue passenger
points in 2015, improving overall
airline industry average by more
kilometers (RPK) have also in-
load factors for the coming years
than 4 percentage points.
creased during that same period
would be beneficial for Ethiopian
of time, however at a lower year-
Airlines in order to sustain its
ly rate of 17.71%.
profitability.
It is apparent that to consistently
This may seem fine, since the air-
Summary
increase passenger and total rev-
line has remained profitable.
For an airline to be consistently
enues and remained profitable,
However, considering the fact
profitable year on year is rare.
Ethiopian Airlines had opted to
that passenger load factor has
Finding a State-owned airline to
increase capacity. Therefore, the
continuously
since
be sustainably profitable over
airlines has added available seat
2011 from a solid record 72.23%
several consecutive years is com-
kilometers (ASK) year on year at
to well below the yearly average
parable to the daunting task of
an average rate of 17.85% since
of 69% by almost 3 percentage
finding a needle in a haystack.
Capacity and Passenger Load Factor
20
decreased
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Despite these odds, Ethiopian Airlines has clearly proven that this can be done. Furthermore, the most profitable airline in African has grand expansion plans for the future and actual
performance
numbers
Ethiopian Airlines should pursue strategies that can both boost its load factors as well as maintain its profit margins above a minimum pre-established target.
seem to indicate that they are well on track, if not ahead of schedule to turn that ambition
into reality. However, the national carrier of Ethiopia should pursue strategies that can both boost its load factors as well as maintain its profit
Airline Profits
margins above a minimum pre-established target. Achieving these key measures would certainly strengthen the financial performance of the East African airline over the long-term. Unlike business cases where growth ambitions turned into swelling disaster, so far, the annual growth experienced by Ethiopian Airlines appears to be well under control. Hence, the parting questions: how large can Ethiopian Airlines get? And could the sky be the limit?
April-May 2016
Volume II—Issue 8
“ There is nothing impossible to him who will try. ― Alexander the Great
Airline Profits
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April-May 2016
Volume II—Issue 8
Performance Could Cathay Pacific Regain Its Record Level of Profitability?
For most part, Cathay Pacific has experienced seven consecutive years of airline profitability since 2009, and closed 2015 on a positive 0.7 billion US dollars in net profits. In this edition of Airline Profits, we are reviewing the financial performance of the Hong Kong-based airline. Over the last decade, 2008 has been a very challenging year for the airline industry and Cathay Pacific was not spared.
Review of the last decade Despite a sharp growth in revenues and profits with decent and above industry margins in 2006 and 2007, the Hong Kong-based airline reported a deep loss in 2008. Even though revenues that year were much higher compared to
The spectacular results recorded in 2010 clearly indicate drastic measures of efficiency that allowed the airline to boost revenues and cut costs at the same time.
the previous two years, Cathay lost more than 1 billion US dollars with negative margins well below that of the airline industry
average in terms of operating and net margins respectively -9.28% and -10.05%.
Return to Profitability
profits in 2010, while bringing
It took Cathay Pacific just one
revenue at just slightly higher
year to rebound, despite a steep
than that of 2008. The spectacular
decline in revenue in 2009.
results recorded in 2010 clearly
The resolve of Cathay to remain profitable was even more manifest when the airline doubled its
indicate drastic measures of efficiency that allowed the airline to boost revenues and cut costs at the same time.
24
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A Cathay Pacific Boeing 747F. Photo Credit: Cathay Pacific
Airline Profits
April-May 2016
Volume II—Issue 8
Performance
It is also apparent that the airline paid very little interests and taxes that year, when one considers the fact that the net results were al-
most equal to the operating profits.
The Profitability Journey Con-
Cathay has since increased its profits year on year until 2015 with almost 0.8 billion US dollars in net results, despite a decrease in revenue compared to 2014.
tinued
Cathay Pacific pursued its jour-
The following year saw a signifi-
until 2015 with almost 0.8 billion
ney in black ink with higher reve-
cant
profits even
US dollars in net results, despite
nues in 2011, however profits
though revenues were slightly
a decrease in revenue compared
drop to less than half of the rec-
higher. Cathay has since in-
to 2014.
ord set in 2010.
creased its profits year on year
26
decline in
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Summary Over the last decade, 2010 has been by far the most profitable year that Cathay Pacific has experienced. And despite the steady increase in profits reported since 2012, the airline is still far off that profitability record.
Regaining the level of efficiency and cost control, which led to that exceptional result could undoubtedly make Cathay Pacific one of the most profitable airlines in the world.
This record performance was achieved with the lowest revenue over the last six years.
and cost control, which led to that exceptional result could undoubtedly make Cathay Pacific one of the most profitable airlines in
And that seem to indicate that
the world.
regaining the level of efficiency
Airline Profits
April-May 2016
Volume II—Issue 8
“ A leader is best when people barely know he exists, when his work is done, his aim fulfilled, they will say: we did it ourselves. ―Lao Tzu
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Airline Profits
April-May 2016
Volume II—Issue 8
Paradigm Profit Sharing: A Double-Edged Sword for American Airlines?
In a recent move, which could be qualified as a surprising reversal, American Airlines CEO, Doug Parker announced the adoption of an employee profit sharing program at the airline. Considering the fact that Mr. Parker had maintained the opposite view that “higher salaries are better than risky pay schemes” over the previous two years, the question is worth asking: will the implementation of an incentive pay scheme translate into better performance or be in reality a double-edged sword for American Airlines? Let’s establish from the outset that generally speaking an employee profit-sharing plan is a good policy, when done right. And here is a sound basis for that. The main reason for an organization to adopt such a program is to cultivate a stronger team, a strong atmosphere of “We are all striving for the same
Far from being a sign of weakness, changing one’s mind to do the right thing is a sure sign of leadership. After all, according to Peter Drucker, the renowned management Guru, leadership is about doing the right thing.
goal. We are all in this together, so let’s all give it our best so we
dent that their managers are and
yet another scheme to buy off
can all win together.”
will act in good faith and do
their cooperation. With that said,
what they said they would. Fur-
here are some facts to keep in
thermore, there has to be a genu-
mind.
And for that to truly take place there must be a high level of trust on the part of employees toward their management team. In other words, employees must be confi-
30
ine feeling that managers are doing the right thing by implementing an incentive pay program and not just the introduction of
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Some Background Firstly,
as
mentioned
earlier,
Doug Parker has been a staunch
An American Airlines Boeing 787 Dreamliner. Photo Credit: American Airlines
opponent of an employee profit-
Fourthly, Mr. Parker openly stat-
The Leadership Perspective
sharing plan.
ed: “our front line employees still
First of all, far from being a sign
don’t trust us.” A confession,
of
which is obviously good for the
mind to do the right thing is a
soul of a genuine leader.
sure sign of leadership. After all,
Secondly, Delta Air Lines and United Airlines, the closest competitors of American have such a plan in place, a policy which
With all that pull together, one
American employees have been
might ask: was an employee in-
pressuring their management to
centive pay policy the right thing
adopt.
to do and was that done at the
Thirdly, the plan was announced after the two most profitable
right time, as far as American Airlines is concerned?
weakness,
changing
one’s
according to Peter Drucker, the renowned
management
Guru,
leadership is about doing the right thing. Secondly, when it comes to timing of doing the
right thing, Martin Luther King Jr., one of the great leaders of all
years, which some analysts think
Well there are two angles to con-
times, said: “the time is always
that American Airlines may not
sider: one from a leadership per-
right to do the right thing.”
be able to replicate any time
spective and the other from an
soon.
employee perspective.
Airline Profits
April-May 2016
CONTINUED...
Volume II—Issue 8
Airline Profits
April-May 2016
Volume II—Issue 8
Paradigm
Therefore, on that basis, by final-
Therefore,
the
announcement
past stance of Doug Parker about
ly reversing himself to do the
alone was not sufficient to con-
such a policy, the timing of the
right thing, in the best interest of
vince American Airlines’ workers
announcement as well as the rec-
all American Airlines’ employ-
that their management meant
ognized lack of trust from work-
ees, Doug Parker has undoubted-
what they said. Some are still in
ers make it a more complex or-
ly confirmed his leadership.
the waiting mode to see the ful-
deal.
fillment of the promise made by
yield expected results in terms of
Whether this policy will
American executives. The Employee Perspective
Based on reactions expressed through social media, ranging from satisfaction, indifference to cynicism, it is clear that employees are expecting their management to effectively walk the talk. To those who welcomed the announcement with a sigh of relief, the general feeling was something like: “it was about time
Given the historical context at American Airlines, the past stance of Doug Parker about such a policy, the timing of the announcement as well as the recognized lack of trust from workers make it a more complex ordeal.
they [management] decide to do
the right thing”.
Summary
employee
To those who received the news
An employee profit-sharing pro-
bonding and improved efficiency
with indifference or cynicism, the
gram is definitely a good policy
or not, time will tell. However,
sentiment was like: “we’ve been
to adopt, in order to rally a team
counting on that program alone
there before, we’ll wait and see if
behind a common business goal.
to win employees over the man-
they [management] actually do
That can help improve efficiency
agement side may prove to be a
that. Or, we’ll believe it when we
and
double-edged sword for Ameri-
see it.”
mance, including profitability.
ultimately
boost
perfor-
However, given the historical context at American Airlines, the
32
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engagement,
team-
can Airlines, which can either narrow or widen the perceived chasm between the two sides.
Impossible
“It always seems impossible until its done.” — Nelson Mandela
Airline Profits
April-May 2016
Volume II—Issue 8
“ When your values are clear to you, making decisions becomes easier. ― Roy E. Disney
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Airline Profits
April-May 2016
Volume II—Issue 8
Platform Delta Ordered the Largest Fleet of CSeries: Can Bombardier Shout Victory?
In what could be called a fortunate turn of events, the Atlanta-based Delta Air Lines and the Canadian aircraft manufacturer Bombardier have jointly announced a firm order of 75 CS100, the smaller version of the CSeries family of aircraft with an option of 50 more of these airplanes. Delta could swap some CS100 for the larger CS300 in the future. Based on the list price, the order amounted to some 5.6 billion US dollars.
The news broke early morning on April 28, 2016 followed by an event held at the Bombardier Mirabel plant, which both Alain Bellemare, CEO of Bombardier and Ed Bastian, the incoming CEO of Delta Air Lines attended. Reports of Delta considering both the CSeries and the Embraer 190
Fortunately for Bombardier, the decision-makers at Delta Air Lines considered more important and objective criteria than just the pricing, which in most cases can prove elusive.
have been circulating over the past few weeks. Therefore, both Bombardier and its Brazilian rival, Embraer were awaiting the final verdict by Delta Air Lines, the world’s second largest airline. One could imagine the level of
deal that Boeing had snatched
portance: the success and reputa-
away from Bombardier not too
tion of Bombardier and the
long ago, which apparently hap-
CSeries were at stake and the
pened in the very last minutes of
stakes were very high. Fortunate-
the negotiations.
ly for Bombardier, the decision-
anxiety on the Canadian side,
As a result the Delta campaign
considering the United Airlines
had taken on a much greater im-
36
makers at Delta Air Lines considered more important and objective criteria than just the pricing,
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A Bombardier CS100 with Delta Air Lines livery. Photo Credit: Bombardier
which in most cases can prove
been subtly confirmed by the re-
So, as other analysts have point-
elusive.
actions and comments by the
ed out, that was indeed a strong
competition, namely Airbus and
endorsement
Boeing.
bardier and the CSeries.
tive observer or analyst that the
With that said, the order that
Furthermore, comments that Del-
CSeries is by far the best aircraft
Bombardier just got from Delta is
ta Air Lines executives, Ed Bas-
in its category. Obviously, one
certainly a big deal, both plainly
tian and previously Richard An-
has to look beyond the delays
and figuratively speaking. This is
derson, made about the airplane
and cost-overrun incurred by this
not only the largest order for the
can serve as unbiased market
clean-sheet program and also the
CSeries, but also for any Bom-
proof to win more orders from
corporate
Bom-
bardier commercial aircraft. And
other airlines, most of which
bardier and its recent share prices
that came from a leading, well-
were on the fence, in a wait-and-
to arrive at such a conclusion.
respected and award-winning,
see mode, apparently expecting
This is an observation, which has
world-class airline.
some bolder player to make the
As a matter of fact, there is no doubt in the mind of any objec-
structure
Airline Profits
of
April-May 2016
for
both
Bom-
Volume II—Issue 8
Airline Profits
April-May 2016
Volume II—Issue 8
Platform
first move.
obvious reaction would be for
Bombardier may require more
Airbus and Boeing to try even
funding
harder to prevent Bombardier
package from both the Quebec
from wining more CSeries deals.
and Canadian governments com-
CSeries.
In order to stay the ground and
bined.
However, the game is not over:
move ahead, Bombardier would
The tides seem to have turned
this is only the beginning. In fact,
need enough cash reserves not
now in favor of the CSeries and
Furthermore, the Delta deal is not only a major order, but more
importantly a defining moment for
the
Bombardier
than
the anticipated
through this deal, the CSeries has just received the endorsement it needed to be considered a truly serious contender of the Airbus A320neo
and
the
Boeing
737MAX. Therefore, this is certainly not the time for Bom-
bardier to rejoice too much over the Delta deal. This is rather a unique opportunity, a second
The tides seem to have turned now in favor of the CSeries and hopefully Bombardier will seize this momentous opportunity...
chance of some sort, to regain some lost ground.
In fact, Bombardier should up
only to produce the aircraft, but
hopefully Bombardier will seize
their game to remain on the
more importantly to intensify
this momentous opportunity and
offensive and be prepared to face
their sales efforts and also to
dedicate enough resources on
an even tougher competition
effectively ensure a higher level
reclaiming as much ground as
from Airbus and Boeing. Plainly
of customer satisfaction as the
was lost as a result of squander-
speaking,
Montreal-based
CSeries
ing the historical chance of deliv-
manufacturer has just passed tall,
service.
the
padded and angry gate-keepers and went into their backyard to play anyhow, despite their strong oppositions. So, a natural and
38
aircraft
enters
into
In order to carve out and keep a decent share of a market dominated by Airbus and Boeing,
www.airlineprofits.com
ering the all-new CSeries to the market first, well ahead of the reengined rivals.
Vision
“Where there is no vision, there is no hope.” — George Washington Carver
Airline Profits
April-May 2016
Volume II—Issue 8
“ A leader is one who knows the way, goes the way, and shows the way. ―John C. Maxwell
Airline Profits
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