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As the travel market recovered during 2022, key contestants like Air Canada, Air Transat, Sunwing, and WestJet (including Swoop, its ULCC subsidiary) reinstated aircraft to handle the surge of domestic and international traffic.<\/p>\n\n\n\n
While it was wisely keeping its powder dry during the pandemic, Porter Airlines planned how it would take advantage of the pent-up demand for air travel once government-imposed restrictions were removed. Its fleet of turboprops would be reactivated, but the carrier had grander ambitions. Before discussing what came next, it is worth reviewing how Porter\u2019s situation has evolved.<\/p>\n\n\n\n
Enterprising Evolution<\/strong><\/p>\n\n\n\n Porter Airlines began with a pair of Dash 8-400s operating between Billy Bishop Toronto City Airport (YTZ) and Ottawa in October 2006. Its premium in-flight service and convenient hub in the downtown core of Canada\u2019s largest city earned the company accolades and passenger traffic. By the end of 2011, Porter was operating 26 turboprops year-round to 12 Canadian destinations between Thunder Bay, Ontario, and St. John\u2019s, Newfoundland. As well, it was serving Boston, Chicago, and New York in the U.S. The carrier wanted to expand its route network across the continent, but required jets to do so.<\/p>\n\n\n\n In April 2013, Porter became the Canadian launch customer for the Bombardier CS100 jetliner when it ordered 12 units and took up options for an additional 18 aircraft. The orders were conditional on Porter receiving permission to operate the type out of YTZ, as well as getting runway 08\/26 extended by almost 500 feet. However, in late 2015, the newly elected federal government said that jet airliners would not be allowed at YTZ. Porter\u2019s expansion appeared to have been thwarted. Like \u201cMr. Porter,\u201d its anthropomorphic raccoon mascot, the airline\u2019s management team has shown itself to be clever and tenacious.<\/p>\n\n\n\n The Canadian airline industry was abuzz when Porter became the North American launch customer for the Embraer E195-E2 jet on July 12, 2021, and announced it would be operating out of Toronto Pearson Airport (YYZ) for the first time. The deal included a firm order for 30 aircraft and purchase rights for another 50. The following July, the firm order was increased to 50 aircraft. Based on the type\u2019s list price, the 100 total aircraft have a value of approximately US$7.4 billion. <\/p>\n\n\n\n Porter\u2019s jet operation is a bold venture. In order to see how it will differentiate itself from the competition, let\u2019s take a closer look at the key features of the airline\u2019s business plan.<\/p>\n\n\n\n Attractive Aircraft<\/strong><\/p>\n\n\n\n The Embraer ERJ 190-400 STD, marketed as the E195-E2, is a twin jet airliner that normally accommodates up to 146 passengers. Porter\u2019s planes are configured with 132 economy class seats, four abreast. The first two examples were delivered in December 2022. Since then, another seven have arrived at Toronto. Porter expects that 25 to 30 of the jets will be operating by the end of 2023 and that 50 should be in service a year later.<\/p>\n\n\n\n The cabin features three seating options: \u201cPorterReserve,\u201d which has four rows (16 seats) with a 36-inch pitch; \u201cPorterClassic Stretch,\u201d which has five rows (20 seats) with a 34-inch pitch; and \u201cPorterClassic,\u201d which has 24 rows (96 seats) with a 30-inch pitch.<\/p>\n\n\n\n Equipped with Pratt & Whitney PW1900G geared turbofan (GTF) engines, the aircraft has a range of 2,500 nautical miles (4,630 kilometers) with 132 passengers aboard, and a maximum cruise speed of Mach .82.<\/p>\n\n\n\n Although some airlines that fly Pratt & Whitney GTF-powered aircraft have faced various operating challenges, Porter, so far, has not experienced such difficulties. The airline\u2019s president and CEO, Michael Deluce, told Skies<\/em> that \u201cPratt has been great to work with. They have a team that we meet with once a week, and they have individuals on site to make sure that everything goes smoothly.\u201d <\/p>\n\n\n\n Having shown interest a decade ago in what is now the Airbus A220, why did Porter choose the Embraer E195-E2? Deluce said the aircraft\u2019s fuel efficiency, range capability, and eco-friendliness (low emissions and small noise footprint) made it an attractive choice.<\/p>\n\n\n\n Another factor was the availability of the aircraft. Wanting to build up a meaningful fleet in a short period of time would not be possible with any competitive model.<\/p>\n\n\n\n It certainly doesn\u2019t hurt that Porter is the North American launch customer for the type.<\/p>\n\n\n\n \u201cNorth America is a large market for Embraer and Porter is a large customer,\u201d Deluce told Skies<\/em>. \u201cEmbraer is a wonderful company to work with. I can call the CEO and he would answer in one minute.\u201d<\/p>\n\n\n\n Expanding Network<\/strong><\/p>\n\n\n\n Porter initiated its jet operations on Feb. 1, 2023, with service from Toronto to Montreal and Ottawa. Later that month, E195-E2 service started from Toronto to Vancouver, Edmonton, and Calgary. The E195-E2s will eventually be operating from Toronto, Montreal, Ottawa, and Halifax to destinations across Canada and the United States.<\/p>\n\n\n\n Potential U.S. destinations include Las Vegas, Los Angeles, Miami, Phoenix, and San Francisco, and the airline is also considering adding service to Mexico and the Caribbean. Further, Porter\u2019s jets may eventually be based at Western Canadian airports.<\/p>\n\n\n\n Growing Team<\/strong><\/p>\n\n\n\n Porter currently has a team of roughly 2,500 personnel, which is about 1,300 more staff than its pre-pandemic level. However, more pilots, flight attendants, and aircraft maintenance engineers (AMEs) will be required for the new venture, and are to be sourced from both within Porter and outside the company \u2014 through flight schools, aviation colleges, and the industry\u2019s most traditional source: competitors. Ultimately, the carrier expects to have 4,500 employees by the end of 2024.<\/p>\n\n\n\n In addition to providing industry-competitive salaries, Porter pays a bonus to its team members.<\/p>\n\n\n\n \u201cThe key success factor is our operational reliability,\u201d explained Deluce. \u201cSo, we have an incentive program that is driven by key operating metrics.\u201d<\/p>\n\n\n\n He also noted that Porter\u2019s growth is providing career opportunities for individuals who wish to take on more responsibility.<\/p>\n\n\n\n New Facilities<\/strong><\/p>\n\n\n\n At Montreal Saint-Hubert Airport (YHU) in Longueuil, Quebec \u2014 roughly 10 miles (16 km) east of downtown Montreal \u2014 Porter is building a new passenger terminal. Due to be completed by the end of 2024, it will handle four million passengers annually. Porter plans to operate both E195-E2s and Dash 8-400s there, but will also continue to operate out of Montreal-Trudeau Airport (YUL) \u2014 just west of Montreal\u2019s downtown core in Dorval, Quebec.<\/p>\n\n\n\n Asked how this idea came about, Deluce said, \u201cKnowing that Montreal is a key part of our overall growth plans, we\u2019ve been looking at ways to differentiate Porter in the Montreal marketplace.\u201d The strategy will result in Porter being the only Canadian scheduled carrier to operate at two airports at each of Canada\u2019s two largest cities (Toronto and Montreal).<\/p>\n\n\n\n He added, \u201cWe extensively studied Saint-Hubert\u2019s catchment area and there is a substantial portion of the population that will see drive-time savings, plus on-the-ground time savings at that airport.\u201d<\/p>\n\n\n\n Porter is also investing in Ottawa International Airport (YOW), with plans to build two aircraft hangars for the maintenance of its Embraer jets and De Havilland turboprops. The 150,000-square-foot complex is expected to be completed by April 2024. Heavy maintenance on the jets will still be performed by Embraer at Nashville, Tennessee.<\/p>\n\n\n\n SWOT Analysis<\/strong><\/p>\n\n\n\n In order to better understand any business model, and therefore appreciate how a company may fare in the future, it is helpful to perform a SWOT (strengths, weaknesses, opportunities, and threats) analysis. Doing so with Porter provides the following insights:<\/p>\n\n\n\n Strengths<\/strong><\/p>\n\n\n\n One of Porter\u2019s strengths is its reputation. The carrier\u2019s \u201cFlying Refined\u201d brand reflects its focus on customer experience, including courteous service and the provision of quality food and beverages. Since its inception, Porter has received numerous travel industry awards for passenger satisfaction.<\/p>\n\n\n\n Another strength is its fleet. The Embraer E195-E2 provides excellent fuel efficiency and impressive range capability. Porter\u2019s examples feature fast Wi-Fi, powered by Viasat, at no additional cost to the customer.<\/p>\n\n\n\n Deluce noted that the airplane\u2019s two-by-two seat configuration is also important, as \u201cwe are the only airline in North America that does not have a middle seat.\u201d <\/p>\n\n\n\n Lastly, Porter has a strong corporate culture. The airline has been able to attract and retain talented individuals because of its positive attitude toward its team members. <\/p>\n\n\n\n Weaknesses\u00a0\u00a0\u00a0\u00a0<\/strong><\/p>\n\n\n\n One of Porter\u2019s weaknesses is its low profile. While Porter is well known and respected in Eastern Canada, it will be working to become a familiar name west of Ontario and south of the border. So far, the new transcontinental services are generating an impressive level of originating traffic from Western Canada.<\/p>\n\n\n\n Another weakness is the fact that Porter is a private company. As a tightly held enterprise, Porter may not have the same access to financial resources as a public company. Nonetheless, it has done well in arranging lease financing for many of its new jets.<\/p>\n\n\n\n Opportunities<\/strong><\/p>\n\n\n\n Porter\u2019s new hub at Saint-Hubert offers one area of opportunity. Its jets and turboprops are to be deployed to destinations across Canada, from Vancouver to St. John\u2019s. This new facility will enable the creation of many new city pairs for the convenience of Canada\u2019s second-largest metropolitan market.<\/p>\n\n\n\n With its expanding network \u2014 thanks to its new Embraer jets \u2014 Porter will also have an opportunity to win domestic market share. Having never operated west of Ontario, Porter is offering its premium brand to Alberta and British Columbia for the first time.<\/p>\n\n\n\n Threats<\/strong><\/p>\n\n\n\n An obvious threat to Porter is its competition. The two Canadian mainline carriers, Air Canada and WestJet, as well as newer ULCC players like Flair and Lynx, may use pricing as a weapon in an effort to retain market share. To be fair, Porter\u2019s service offering does not compete directly with the Y-class products of its competitors. <\/p>\n\n\n\n Another threat is the ongoing labor shortage. As the world\u2019s population ages, the global airline industry is experiencing a shortage of pilots and AMEs. While not unique to Porter, the carrier may particularly struggle with this challenge as it seeks to hire roughly 2,000 new staff over the next year-and-a-half to support its growing fleet. However, Porter\u2019s enviable reputation and its positive corporate culture have been most helpful in mitigating this situation thus far.<\/p>\n\n\n\n Final Words<\/strong><\/p>\n\n\n\n The Canadian airline industry\u2019s landscape has constantly been reshaped by economic, regulatory, and financial forces since it was deregulated on Jan. 1, 1988. Since then, many scheduled passenger carriers \u2014 like Canada 3000, CanJet, Intair, Jetsgo, Nationair, Royal Aviation, Zip, and Zoom, to name a few \u2014 have flown into history. Nonetheless, aviation is magnetic. It continues to attract entrepreneurs and capital.<\/p>\n\n\n\n With its growing fleet of Embraer E195-E2 jets and its well-respected service, Porter Airlines is well positioned to benefit from the travel industry\u2019s resurgence. <\/p>\n","protected":false},"excerpt":{"rendered":" Despite keen competition, renowned regional carrier Porter Airlines is extending its presence across North America with ambitious expansion plans and a growing fleet of new Embraer E195-E2s.<\/p>\n","protected":false},"author":144,"featured_media":347528,"comment_status":"open","ping_status":"closed","template":"","categories":[99054],"tags":[],"class_list":["post-347526","features","type-features","status-publish","has-post-thumbnail","hentry","category-commercial","entry"],"acf":[],"jetpack_sharing_enabled":true,"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/skiesmag.com\/wp-json\/wp\/v2\/features\/347526","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/skiesmag.com\/wp-json\/wp\/v2\/features"}],"about":[{"href":"https:\/\/skiesmag.com\/wp-json\/wp\/v2\/types\/features"}],"author":[{"embeddable":true,"href":"https:\/\/skiesmag.com\/wp-json\/wp\/v2\/users\/144"}],"replies":[{"embeddable":true,"href":"https:\/\/skiesmag.com\/wp-json\/wp\/v2\/comments?post=347526"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/skiesmag.com\/wp-json\/wp\/v2\/media\/347528"}],"wp:attachment":[{"href":"https:\/\/skiesmag.com\/wp-json\/wp\/v2\/media?parent=347526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/skiesmag.com\/wp-json\/wp\/v2\/categories?post=347526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/skiesmag.com\/wp-json\/wp\/v2\/tags?post=347526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/assets.skiesmag.com\/wp-content\/uploads\/2023\/04\/20211107-DSC_0021-2-DeNoiseAI-clear-edited.jpg\"){kind=spacer}
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