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Embraer: New Metrics of Success

News|Fonts in Use|Jason Wilkins 2016-01-16 06:57:23

"The New Metrics of Success" is part of a continuing series of Embraer communiqués dedicated to helping airlines confront industry challenges. Subtitled "Fresh Perspectives on Airline Fleet Strategies," the brochure makes a case for a business model that emphasizes profit-per-seat and return to shareholders over the pursuit of market share (which often involves discounted fares — and lower returns —in order to fill large aircraft of 170 seats or more). A key insight is that Embraer's "right-sized" 70 to 130-seat aircraft segment can lead to better profits because lower-capacity aircraft generate higher revenue per seat.