TRANSFORMING INTO A GLOBAL CHAMPION slide image

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 16
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