A MAGAZINE FOR AIRLINE EXECUTIVES 2009 Issue No. 1 2008 Issue No. 2 Taking your airline to new heights A Clear Vision A Conversation With … Sean Durfy, Chief Executive Officer, WestJet Airlines, Page 16. Special Section Survival Guide 38 8 Japan Airlines takes steps to improve 21 Delta Air Lines/Northwest Airlines merger 44 its environmental performance impacts regional carriers Airlines have three basic options to raise capital making contact Taking your airline to new heights 2009 Issue No. 1 To suggest a topic for a possible For more information about Editor in Chief future article, change your products and services featured in this Stephani Hawkins address or add someone to the issue of Ascend, please visit our Web site at www.sabreairlinesolutions.com Managing Editor mailing list, please send an B. 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Albeit it’s US$25 billion short, it’s certainly a step in the right direction. All of this is possible because of the try-and-try-again with Tom Klein approach. We’re getting better with each Group President, Sabre Airline Solutions/Sabre Travel Network try, and we never stop trying. I assume that like me, many of you have been mentioning to family members, find the aviation industry’s “try-and-try- ners of the world and creates millions of friends and colleagues that you are tired of again” philosophy to be quite remark- employment opportunities in thousands of hearing and reading nothing but pessimistic I able. With it, there are no failures, just communities. And it’s only made possible and bad news. This perspective is one guy’s experiences that lead to greater success- by the very people who continue pushing attempt to find the bright side. es. No matter how far back in history you the boundaries to secure the future of air Looking at the airline industry as a go, you’ll find the same level of optimism. transportation. whole, I’m impressed with the many carriers If you look back to 1799 at Sir George Air New Zealand, (see pg. 12) for that recognized the trends in demand last Cayley, sometimes known as the “father of example, proactively set forth to reduce year and made necessary capacity adjust- aerodynamics,” or today at any number of fuel burn and CO2 emissions on its long- ments to help keep the industry healthy. airline leaders, they approach aviation with haul flights. During its ASPIRE flight last What we see time and time again, just buoyancy. No task is beyond reach, and September from Auckland to California, like in the early days of aviation, is airlines’ there’s always room to expand and improve. the carrier saved nearly 1,200 gallons of innate ability to move the industry forward Doesn’t matter how old this way of thinking fuel and reduced CO2 emissions by more with confidence. is, I always find it refreshing and worthy of than 11,200 kilograms using advanced discussion. flight planning techniques, datalink It was 210 years ago that Cayley began communications and air traffic control his crusade to get man off the ground and advancements. Bravo airline industry … take a bow! into the air. For 50 years, Cayley designed Japan Airlines (see pg. 8) made an array of gliders that would help set the history in January as the first airline to foundation for the airline industry. Adding to conduct a demonstration flight using 50 Cayley’s work, German engineer Otto Lilienthal percent biofuel blend and 50 percent Jet-A designed the first glider that could fly a person fuel in one of the four engines on a Boeing long distances. And physicist and astronomer 747-300 aircraft. The test flight not only Samuel Langley recognized a power engine reduced CO2 emissions, it also brought was necessary to help man fly. the airline industry that much closer to Based on the studies and experiments reducing its dependence on today’s petro- of Cayley, Langley and Lilienthal, 110 years leum-based fuels. ago the Wright Brothers designed their first These are just two examples of how aircraft. And in 1908, a friend of the Wright airlines have worked diligently to move Brothers became the first passenger of their the industry forward. And we consistently fixed-wing aircraft. see this level of enthusiasm from airlines As I look back on the work of Cayley, around the world. Langley, Lilienthal and the Wright Brothers, On our cover, WestJet Airlines Chief it’s apparent they set out to accomplish great Executive Officer Sean Durfy discusses things, and they did. It took a lot of persever- his plans of continuing to grow the airline, ance, trial and error, and setbacks, but they the recently announced codeshare agree- didn’t give up. And their enthusiasm clearly ments with two of the world’s leading carries over into the industry we know today. airlines and how staying true to its initial What started out as a mission to put vision has kept the airline’s foundation a human being in the air has progressed strong and thriving. He doesn’t hesitate into an ever-evolving business that brings or re-think his strategy. He’s identified together millions of people from all cor- the best course of action, and he’ll move contents 36 profile regional industry 8 21 26 Japan’s Green Machine Connecting The Dots Fleet Shuffle Japan Airlines takes myriad Delta Air Lines and Northwest As a result of aircraft delivery sustainable actions to improve its Airlines merger has significant delays, carriers around the world environmental performance. impact on some regional carriers. are forced to improvise until their new planes arrive. 12 24 Forward Leap Aeroflot’s Revolution 30 Air New Zealand’s ASPIRE flight Aeroflot Russian Airlines reinvents Cutting Up from Auckland to California saved itself through an extensive Airlines’ revenue management and approximately 1,174 U.S. gallons turnaround initiative. pricing teams can offset the ill of fuel using a Boeing 777-200ER effects of capacity reductions and aircraft. maximize their potential benefits. 16 33 A Clear Vision The KISS Principle WestJet Airlines explains how it Low-cost carriers are stays true to its vision. implementing traditional airline characteristics while network carriers remove some conventional attributes. 36 16 Immense Intelligence Airlines can determine a successful course, effectively respond to change and measure their success using business intelligence. 30 ascend contents 56 company solutions special section 40 64 70 Network Checkup The Explorer Brainpower Airlines can follow basic Sabre Airline Solutions recently Business intelligence solutions guidelines to ensure the right acquired Flight Explorer for its enable airlines to broaden their markets are served at the right real-time tracking, reporting analysis capabilities to include key times.