Industry Updates for Clients & Friends of Boyd Group International

February 2, 2024


In This T&G: 


  • The New Realities of Future USA Air Service
  • Some Observations - B6/NK, Southwest Cabin Upgrades


Analyzing Emerging Air Service Dynamics.


Time To Optimize The Future


And Drop Trying To Recreate The Past



Summary: The trends in airline strategies and fleets render useless the veneer media stories about declining air access and shrinking consumer options. The real challenge is to move beyond trying to recreate the past.


Here’s a fact that might be considered heresy:


Between new airline fleet trends, changing consumer patterns, major shifts in the role and application of air transportation as a communication channel, emergence of new logistics applications, the future for air service in the USA is flat-out positive.


Different, to be sure. But new trends point to a stronger and more robust air transportation system now developing. The key is to analyze trends within the context of the future, instead of the past.


Clinging To Yesterday – Instead of Recognizing The Future. But there is organized opposition. Holding the future back are air service development approaches based on trying to recreate an airline industry long gone, assuming fleets of airliners that are long since retired, and approaches that mislead the public into thinking that getting more service is just a matter of mining the “right” data and doing the right market studies.


All this is totally in another galaxy from airline industry realities.


New Airliners & Futurist Route Planning. Two weeks ago, I went over the concept of the “Southern Airways Effect,” where, within certain operational imperatives, appropriate aircraft operating from small communities to connecting hub airports can open pathways for economic air access.


Not universal high-volume capacity, but clear options for business travelers. The truth is that no amount of obsolete ASD studies or other black magic will create demand that isn’t there. But there are alternatives that may make sense for isolated rural America.

New-Mission Airliners Changing Airline Strategies. Watching fleet developments, we’ve been clear that at mid-size regional commercial centers– Jacksonville, Grand Rapids, Albany, Louisville are examples – new-generation airliners such as the A321XLR and A220-300 will be making dozens of new long-haul nonstop markets economically viable.


That includes a good deal more trans-Atlantic service, too. Breeze is just the start. Traditional network and hybrid airlines are in the play.


The Problem: Clinging To The Past Instead of Accommodating The Future. But these projections run counter to a lot of the traditional obsolete and short-sighted ASD programs – programs that are engineered to pander to civic hubris more than future economic development. To be blunt, they threaten the rice bowl of a whole genre of consulting.

Never Give A Sucker An Even Break. Just Tell ‘Em What They Want To Hear.


In the meantime, doing a bit of research, I’ve discovered that W.C. Fields provided some rock-solid advice and observations that apply to today’s traditional approach to air service development.


The Strategy: Keep ‘Em Baffled & Away From Reality. Apparently, Mr. Fields would recognize the M.O. of some of the usual suspects.


Programs like milking airports year after year with zero-result studies, presentations, market reports, and the like, most of which sidestep the fact that today, it is internal airline planning that almost unilaterally is driving air service shifts. He described it accurately:


If you can't dazzle them with brilliance, baffle them with bull.”


Don’t ever mention the effects of things like actual airline strategies, changes in airline fleets, alternative consumer airport options, the difference between ULCC and network/hybrid airlines or other pesky facts.


Don’t provide a clear and decisive plan for the future, founded on economic truth.


Keep’em baffled with mushy promises.


Advice To Airports: If It Doesn’t Work, Hey, Maybe Consider Not Doing It, Anymore. W.C. also had advice that some of today’s small communities are now starting to tumble to.


“If at first you don’t succeed, try try again. Then quit. No sense in making a damn fool of yourself."


This sagely advice was brought home recently, when a small community discovered that they’d spent well over three hundred thousand dollars in the past few years “try-trying again” with the perfunctory consultant voodoo. They just noticed that the promise of “luring” more carriers was “bull.” No results.


Apparently, they just now tumbled to the fact that other than a pack of invoices, lovely “market studies,” and maybe several trips to the High Mountain of speed date meetings, they have bupkus to show for the money.


The open question is whether the community involved has learned anything about the realities of airline economics. One thing is clear, they’ve dumped the equivalent of building a couple of T-hangars into a fantasy vapor hole with nothing to show for it.


If true air service trends were addressed, other futurist programs could have been explored. The community never had been honestly appraised of how they needed to plan for a very different airline environment.


In another case, a small airport, struggling to retain a couple of regional jet flights a day, and obviously trapped in a similar pay-for-jive program, was confidently advised that (probably unbeknownst to any airline) they would eventually be getting 737 service, replacing the 76-seaters that were barely making the nut.


The reason, the eager airport was reportedly told, was that a 737 didn’t cost much more to fly than the small jets.


You betcha. The definition of bull. Like, an airline is going take out flights operated by planes with ownership/lease costs based on maybe a $25 million valuation and bring in 737s that have about six times the ownership costs, around $100-120 million.


That alone isn’t just slightly higher. Neither will be fuel burn, maintenance cost and crew compensation. But it’s the latest pap to keep the “mark” on the line.


This type of jive is fixin' to be bulldozed by the emerging shifts in airline operating economics.


The Fleet Cavalry Is Coming. The core issue is that with new applications of enhanced-mission fleets, from 9-seat to 150-seats, there are huge changes coming that defy traditional ASD thinking.


No, it won’t be universally comfortable. But it is on the horizon that most of rural America actually can be air-knitted back into connectivity with the rest of the world.


It doesn’t mean that every small community will have commercial service at the local airport. But connectivity will increase regionally, and with new narrow-body airliners like the A321XLR, secondary commercial airports will see service not dreamed possible ten years ago.

We’ll discuss this in detail – and more – next week. We have some interesting forecast projections to share.

 

Plus, we will be outlining our new Runway To The Future program - an on-line source of new thinking that addresses the opportunities of the future.

 

Plan on this, the RTTF program will build a whole new ASD paradigm that communities will use to rebuild and optimize the future.


For more details this new-generation approach to developing a new ASD program consistent with the future, click here to take a look.


We'll talk.

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The new dynamics of air transportation demand require having core research data that reflect industry realities.


With the changes in the air transportation industry, such as the shifts mentioned above, having hard data is critical, because ambient knowledge isn't always accurate. Leaders stay ahead of the consensus.


To determine where aviation is headed demands knowing where it has been and then researching how new strategies will affect the future.


That means having a clear grasp of all key performance areas.


The future will be different, and access to the pulse of aviation is critical to plan for it.


This is the reason we rely on Cirium to keep our clients ahead of the change curve.

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Observations From Not So Afar

In The Aviation Industry



The JetBlue/Spirit Acquisition. More Uncertainty. The two airlines have appealed the court’s inept decision to block the deal. The court has “fast tracked” the hearing – like until June. The betting is that there won’t be much hope.


The benefits of the agreement have been made clear, already. And ignored.

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In-Seat Power Ports. Technology Leap-Frogging Technology.  Southwest has announced cabin upgrades for next year – new color schemes, new seats and inclusion of power ports.


For anyone who’s settled into their seat only to find their iPhone or laptop is out of juice, having this feature beats a dose of Valium in eliminating the anxiety of being digitally disconnected with the universe.


However, here’s an observation. Batteries in laptops used to be good for an hour or two. Now, we’re looking at several hours of use time. While having in-flight power is now a consumer expectation, for short-haul flights, it has less utility than in the past. But still expected to be there.


Just an observation.

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Drive-By Seat Experts.   Speaking of Southwest’s new seats, they’ve now registered an immediate thumbs-down from one of the gadfly aviation bystanders. Although not installed yet, and not a single WN passenger tushy has sat in one, the verdict is that, from the promo pictures, they “look” too thin to be comfortable.


Experts.

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Thanks for joining us!

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