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Saab Takes New Market Approach To Sell Saab 2000
As one way of competing, the Swedish company says its program, called the Complete Aircraft Repair and Exchange program, will reduce the direct cost of the Saab 2000 high speed turboprop by more than $2 million per aircraft over a period of six years. As Saab aircraft president, Gert Schyborger, explained, "CAREfree is a comprehensive, six-year program offering complete coverage for all Saab 2000 airframe and engine repairable parts and expendables, plus a substantial reduction in spares inventory requirement."
In essence, according to Saab officials, the program completely eliminates an airline's maintenance risk except for the expense of line labor and consumables. CAREfree brings together an airframe rotable repair program, engine power-by-the-hour and complete expendable coverage. For the first 5,000 flight hours, or two years -- whichever comes first -- the program will be provided free-of-charge. Substantial discounts from regular market rates will apply during the subsequent four-year period. From an economical standpoint, Saab believes that trip costs for the 2000 are reduced below those of competitors. This translates into seat-cost savings of up to 25 percent (compared to other 50-seat regional aircraft). Any risk arising from cost fluctuations should be avoided due to CAREfree. And, using Saab as a single-source contact should reduce operator's burden as well. Schyborger said, "Saab's CAREfree program can truly be said to redefine the concept of regional airline economics. Our recent, very successful, Saab 2000 implementation for SAS, is proof that Saab has the knowledge and experience to provide a truly carefree customer support program. Further, the fleet-wide dispatch reliability is now 99 percent, much to the credit of our largest operators, Crossair and Regional." The program is a clear response to market needs. After spending a considerable amount of time studying customer support requirements, Saab decided that offering a risk-free maintenance and repair program was the most cost-effective way to bring value to its customers.
As one airline executive said, "CAREfree looks like a typical Saab program. They are leveraging their strong Customer Support organization to provide us with an exceptional service. We're all for it." Unfortunately, many other regional airlines are heeding the requests of their passengers to fly quicker regional jets. Added benefits and features of the CAREfree program include: Elimination of operating risk, predictable operating cost over an extended period, single source provider of Saab 2000 spare parts, no warranty claims, ease of entry into service and reduction of cash-flow outlay during the initial investment period, status of latest component modification, manufacture/vendor commitment to reduction of real operating cost, ease of reporting and lower requirements for staffing and investment. Saab will begin implementing the program later this month. |
Paris (June 17,
1997) -- Saab Aircraft is introducing a new repair and exchange program,
free for the first two years, to help sell the company's turboprop Saab
2000. The 2000 is facing a regional airline market that has quickly adopted
the new regional jets, making Saab's marketing job difficult indeed.
According to Bjorn
Ohlmarks, vice president of business management at Saab Aircraft, the new
program covers nearly 90 percent of the total direct maintenance costs for
the Saab 2000 operator. CAREfree includes all airframe rotables, all engine
shop visits and both engine and airframe expendable spare parts. Averaged
over the duration of the program, Saab's program will lower the Saab 2000
operators costs at an average of up to 15 percent compared to the regional
aircraft in its class, both in conventional turboprops and regional jets.
The new program reduces turn-around time of airframe rotables repair components
from the usual 45-60 days to about seven. The holding of airframe spares
will be reduced by up to 50 percent without compromising aircraft availability.