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C Serious

              NOTAM
           GERARD FRAWLEY
                             Airbus adds its brand power to Bombardier’s C Series


                               haven’t put eyes on it in the flesh   And despite some initial cognitive   jet?) is a whole new territory.
                               myself, but I have to agree with   dissonance, the A220 does look like   In a conservative business, airlines,
                               John Walton’s assessment in his   an Airbus, a hint of Sharklet winglets   and more importantly the leasing
                            I  Farnborough Airshow report   here, a touch of A350 windscreen   and finance companies that finance
                             this issue that seeing the erstwhile   there. It wears the Airbus livery more   their aircraft, are extremely cautious
                             Bombardier C Series painted up in full   comfortably than the McDonnell   in taking on aeroplanes for which
                             Airbus house colours and redesignated   Douglas MD-95’s transformation into   there is a perceived weak secondary
                             the A220 is “a source of no little   the Boeing 717.          market, and hence weak residual
                             cognitive dissonance”.           If Airbus can make the A220 a   values (think A380). On the other
                               But that was clearly the point. In   sales winner where Bombardier could   hand, Airbus’s own A320 and Boeing’s
                             taking on the C Series and adding it to   not with the C Series, it will validate   737 are proven, low-risk financial
                             its own product line as unequivocally   yet again that success in business   propositions. No airline CFO was ever
                             an Airbus, the European planemaker   is much more than having a good   fired for ordering a 737 or an A320.
                             has sent a clear signal that its full   product – which the C Series/A220   Both the A320 and 737 are
                             weight is behind the until now   clearly is – it is due to having effective   excellent aeroplanes, but they are
          Will the A220 reach new heights   struggling narrowbody airliner   marketing and sales teams, and strong   also (relatively) easily trade-able
          under the Airbus brand? airbus  program.          after-sales support and back-up.  commodities. A good second-hand 737
                                                                                           or A320 with plenty of economic life
                                                                                           left in it won’t sit idle for long.
                                                                                             And that has been the chicken and
                                                                                           egg challenge facing the aeroplane
                                                                                           formerly known as the C Series – if
                                                                                           few major airlines have ordered it,
                                                                                           no matter its technical excellence,
                                                                                           few others will, for fear of taking an
                                                                                           orphan into the fleet.
                                                                                             But what Airbus, and the Airbus
                                                                                           brand bring to the A220 is that
                                                                                           assurance that the aircraft is no
                                                                                           more an orphan. And what it also
                                                                                           brings is the muscle and clout to
                                                                                           drive a virtuous circle – the Airbus
                                                                                           brand brings reassurance to airlines
                                                                                           considering ordering the A220,
                                                                                           and the more airlines and leasing
                                                                                           companies that order it, the more
                               Where the C Series, sorry, A220   All those elements, and more,   Airbus can reduce the cost and price
                             goes from here will provide a   combine to make up brand equity.   of the aircraft thanks to economies of
                             fascinating insight into the strength of   And it is really brand equity that   scale, and thus the more attractive a
                             the Airbus brand. Despite a protracted   Airbus brings to the C Series. On its   proposition the aircraft becomes to
                             development, the Canadian-built   own the C Series was a good aeroplane   more airlines and financiers.
                             jetliner offers promising payload-  but something of an orphan. Airlines   It is exactly that virtuous circle that
                             range  performance, excellent   were used to dealing with Bombardier   has driven the incredible success of
                             operating economics and a fantastic   as a manufacturer of excellent regional   the A320 and 737 series.
                             passenger experience with its   turboprops and jets (Q400, CRJ etc),   It will be fascinating to see how
                             five-abreast economy class seating   but mainline jets (can a 100-130   much of that success can be brought to
                             configuration.                 seater really be considered a ‘regional’   the new baby Airbus.


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