Frequent Flyer Programs, Part 1: Valuable Intangible Assets and the Effects of Spend-Based Programs

One of the most valuable assets an airline possesses is its frequent flyer program (FFP). The fiscal impact of these loyalty programs often goes underappreciated; FFPs have grown beyond their original purpose as marketing tools and have become separate business units that contribute billions of dollars to airlines’ coffers annually. While they do still serve [...]

By |October 4th, 2017|mba Insight|0 Comments

The Changing Scope Clause Environments

The Changing Scope Clause Environments One of the major undercurrents in the U.S. airline industry today is the changing relationship between the legacy airlines and the regional airlines that feed into their networks.  The relationship between regional carriers and their larger US counterparts has been dependable for 20 years, but that is all [...]

By |July 11th, 2017|mba Insight|0 Comments

The Pilot Shortage: A Current and Future Threat

    Aviation industry and business press publications are sounding the alarm about a growing crisis in the airline industry—a shortage of qualified pilots to operate the aircraft. Their fears are well founded; the Boeing 2016 Pilot Outlook indicates that North American companies will need to hire 112,000 pilots between now and 2035. The need for [...]

By |March 21st, 2017|mba Insight|0 Comments

Aircraft Profile: Embraer E175

Washington D.C., November 16, 2015 – Lindsey Webster (Mohr), Manager of Valuations, Morten Beyer & Agnew (mba), provides insight on the Embraer E175 market and value activity in the November issue of Airfinance Journal. "While many carriers continue to upgauge aircraft, the E175 remains in a niche position because of scope clause agreements limiting seating capacity [...]

By |November 16th, 2015|mba Insight|0 Comments

Analysis: Boeing 777/777x Gap Unchanged Through May

Based on Boeing's most recent release of orders and deliveries to include May 2015, there were nine 777 aircraft delivered in May.  This continues to demonstrate Boeing's resolve to maintain its production schedule at 8.3 aircraft per month.   A review of Boeing's orders in May showed no new 777 or 777x aircraft orders, thus [...]

By |June 5th, 2015|mba Insight|0 Comments

Analysis: With Tianjin Airlines’ Order, the Embraer Production Gap to the E2 Jet EIS is Shrinking

With today's order of 20 Embraer 195s, placed by Tianjin Airlines, the gap in production of the current generation aircraft moving to the new E2 aircraft is becoming de minimis.  According to mba's calculations, the gap consisted of approximately 50 aircraft, or two quarters worth of production.  The Tianjin order decreases the gap to only [...]

By |May 30th, 2015|mba Insight|0 Comments
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