Airline profits - Volume II - Issue 8 - April 2016

Volume II—Issue 8

A Magazine for Aviation Leaders & Influencers

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FEATURED

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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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

www.airlineprofits.com

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

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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

www.airlineprofits.com

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

www.airlineprofits.com

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

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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

www.airlineprofits.com

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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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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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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@AirlineProfits

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