ⓒ Bombardier, Montreal, May 2016
It's useful to know what Boeing and Airbus wouldn't tell you.
Traditionally, the airline industry has concentrated on a cost-per-seat strategy because it was the only way to extract margin. As a result of the lower cost-per-seat pursuit, many airlines were driven toward purchasing larger single-aisle aircraft.
But one size does not fit all.
On many routes, seats were flying for free. Empty seats. And if not free, the seats were on sale. And as everyone knows, sales procure low yields. Consequently, a large part of the secondary market was dropped, or even ignored.
On the other hand, medium-haul markets are reaching a certain level of saturation.So where is the next level of growth? What’s the best way to stimulate traffic and increase the number of passengers travelling through hubs? Secondary and tertiary markets are the key. In other words, it’s time to go deeper in the regions.
What really matters when looking for high yields at low risk is simple: the cost per passenger on board.
Right-Sized for Opening New Markets
Free from design constraints, the Bombardier C Series 5-abreast platform was developed specifically for the 100 -150 passenger market. It is not a stretch, nor a shrink of a legacy program. It’s the right aircraft at the right time.
A Low Risk Solution
With a 25 to 35% lower cost per passenger on board, the Bombardier C Series aircraft are the ideal complements to the larger A320/A321 and 737-800/737-900. The C Series family provides the freedom to think differently about network planning. Which means, airlines have a new way to grow and focus on the next opportunity for expansion.
Increase Your Yields
Entering into service in July of this year, the Bombardier C Series is the right tool to help you be the first to grow these new markets profitably. Now, you can return to these once deserted markets with the right sized aircraft and start increasing your yields.
Be the first to serve those markets where there is no competition, but plenty of opportunity.
But one size does not fit all.
On many routes, seats were flying for free. Empty seats. And if not free, the seats were on sale. And as everyone knows, sales procure low yields. Consequently, a large part of the secondary market was dropped, or even ignored.
On the other hand, medium-haul markets are reaching a certain level of saturation.So where is the next level of growth? What’s the best way to stimulate traffic and increase the number of passengers travelling through hubs? Secondary and tertiary markets are the key. In other words, it’s time to go deeper in the regions.
What really matters when looking for high yields at low risk is simple: the cost per passenger on board.
Right-Sized for Opening New Markets
Free from design constraints, the Bombardier C Series 5-abreast platform was developed specifically for the 100 -150 passenger market. It is not a stretch, nor a shrink of a legacy program. It’s the right aircraft at the right time.
A Low Risk Solution
With a 25 to 35% lower cost per passenger on board, the Bombardier C Series aircraft are the ideal complements to the larger A320/A321 and 737-800/737-900. The C Series family provides the freedom to think differently about network planning. Which means, airlines have a new way to grow and focus on the next opportunity for expansion.
Increase Your Yields
Entering into service in July of this year, the Bombardier C Series is the right tool to help you be the first to grow these new markets profitably. Now, you can return to these once deserted markets with the right sized aircraft and start increasing your yields.
Be the first to serve those markets where there is no competition, but plenty of opportunity.
Grateful thanks to Bombardier for producing this article.
Bombardier are spinning their message very well but is it true or 50% true and will airlines buy it?
ReplyDeleteI hope so for the sake of Canadian employees and that an effective management,not American, team can be put in place.
When I came to Canada in 1980, my apartment overlooked the airfield in Cartierville, Montreal, used by Canadair. At the time, they were flight testing the Challenger business jet, and I enthusiastically followed its development and learned about the revolutionary new method of rivet-less construction.
ReplyDeleteIn 1986, P.M. Mulroney gave the company to Bombardier under strange circumstances, that, as we now know, proved the difficulty of a snowmobile company to become a leading aerospace company.
Some may believe that I receive a commission for writing about Bombardier, but no one can excel more in innovation and invention.
The C100 starts service in July with Lufthansa, and deliveries to Delta Air and Air Canada follow soon after. I feel certain that WestJet is kicking itself for not 'biting the bullet' because of its new order for more B737 aircraft. After all, they already fly the Bombardier Q400.
There is, in my opinion, no competition for this aircraft. China is building a 'copy', and there is another one from Brazil (that doesn't enter service until 2018), therefore, it's easy to let it fly unchallenged, and establish itself in the lead for, at least, a while.
I thought Mike was the most avid C Series groupie around. Maybe not! LOL
ReplyDeleteMike knows whenever it's in the air - and we've seen it fly over our house a few times, resulting in many photos.
Things were very tense until word of the confirmed orders were announced! Now we'll have to book a trip so we can fly on it.
When I emigrated to Canada, my first apartment overlooked the airfield at Cartierville. I became an instant Challenger groupie at that time as my apartment (lowrise) was directly on the approach. Actually, they would fly the ILS into Montreal International, then break off at the last minute into Cartierville. I attended flight school with the President's daughter and gained access to the plant - the Challenger construction was quite innovative at the time. He was an ex-Spitfire pilot in WW2 and, occasionally, a privately-owned model would fly up from the States to offer him a ride. I was always surprised by their huge size when close up.
ReplyDeleteThe inaugural Swiss Air flight of a CS100 from Zurich to Paris on July 15th is, now, bookable. I assume that you have already. ;-)
Say 'Hi!' to Mike.