TRANSFORMING INTO A GLOBAL CHAMPION
OTHER OPPORTUNITIES FOR MARGIN EXPANSION
B737 MAX program - estimated 10% CASM reduction vs Airbus narrowbody fleet.
Concluded agreement with Bombardier for acquisition of 45 firm Bombardier CS300
aircraft starting in late 2019 - 25 Bombardier CS300s to replace Embraer 190 aircraft -
estimated CASM reduction of 10%
Buy-up through additions of Premium Economy cabin on widebody aircraft
Growing ancillary revenues through various passenger-related fees, including baggage,
paid upgrades, on-board offerings, preferred seats and seat selection
seats and seat sele
■ Implemented new Revenue Management System Pricing and inventory determined by
origin and destination rather than by individual flight legs
Applying best sourcing practices - In 2015, Strategic Procurement team executed 156
agreements totaling $1.2B in spend with savings of 9.9% over the term of the
agreements
The renegotiation of our commercial agreement with Aeroplan which terminates in June
2020
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