SPS Aviation_5 Issue 5 May 2014 | Page 30

COMMERCIAL    REGIONAL AVIATION formance or passenger comfort. For both mainline operators and regional carriers, following the Rule of 70 to 110 can mean matching capacity to demand, increasing frequency, right-sizing fleets and maintaining existing markets while growing new business. The Embraer 170, 175, 190, and 195 jets are a new-evolution family of aircraft, each engineered from the ground up to be comfortable, efficient and cost-effective. From the earliest planning stages, engineers understood the need for a new platform, an airframe created specifically for the 70- to 110-seat segment. The result incorporates new technology on the flight deck and proven design elements in the cabin, making the new airframe both pilot and passenger friendly.  SP The Rule of 70 to 110 Answering Capacity/Demand Gap The Rule suggests airlines right-size fleets and match capacity to demand to optimally serve the growing 70-to 110-seat segment. 34% 27% of flights depart with loads appr. for 90-110 seat aircraft of flights depart with loads 17% 17% appr. for 70-90 seat aircraft 14% 13% % of total departures Brazilian aircraft manufacturer Embraer sees strong growth prospects for small jets in India. excess capacity hurts the bottom line 9% 8% 7% 4% 4% 2% 2% <50 50 60 70 80 90 100 110 120 130 regional jet stage lengths 400,000 300,000 2002 200,000 2001 New market applications for aircraft in the 70- to 110-seat category mean the line between regional and mainline jets is blurred 2000 100,000 1999 1998 1997 1996 1995 0 100 300 300 700 Source: OAG 500 700 900 1,100 1,300 Miles 1,100 1,500 1,900 2,300 Km Sector distance Fleet in Service (61- to 120-seat segment) No. of aircraft 500 Answering Expanding Regional Markets The Rule proposes that aircraft in the 70-to 110-seat capacity category, with narrow-body jet type cabin comfort and mission performance, will blur the line between mainline and regional aircraft and optimally serve new market opportunities. 300 Answering Ageing Fleets With nearly 700 aircraft reaching the end of their economic lives, airlines can apply the Rule to right-size fleets with new-generation aircraft that are built to last, employ the latest technology, and are specifically designed for the 70-to 110seat segment. 100 28 ISSUE 5  • 2014 >150 Source: US DOT/BACK Aviation Solutions Answering Excess Capacity The Rule states that by incorporating efficient right-sized aircraft, airlines can increase frequency of 70-to 110-seat flights to capture market share. And while providing customers with more choice, they can keep 120-plus seat aircraft on highdemand routes. • 140 3% Passengers per departure Annual flights can generate positive returns. Regularly turning away customers in a fiercely competitive market means loss in revenue and may also strengthen a rival’s market hold. Acquiring incrementally larger aircraft helps retain passengers and keeps an airline competitive as well as more profitable. The shifting market dynamics of the present times, led Embraer to the principle of fleet capacity optimisation and the Rule of 70 to 110. Applied correctly, The Rule helps airlines achieve operating efficiency without compromising per- 689 Aircraft older than 20 years 453 34% of total fleet in service 372 400 330 304 277 208 200 0 108 0-5 6-10 11-15 16-20 21-25 26-30 30+ Aircraft age (years) Source: BACK/Fleet PC www.sps-aviation.com