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link below. In the late 1960's, Dassault Aviation made a huge bet. The company
designed its first commercial airliner, the Mercure 100, to do one thing
fantastically well. Fly short routes more efficiently than any other airliner. With
the hope of taking on rival giants like Boeing, Dassault invested large sums into
developing its new jet, and built several factories in anticipation of demand. But
if you've never heard of the Mercure, it's because airlines weren't interested
in buying it. And Dassault's new jet would go down as one of the worst commercial
failures in aviation history.
designed and built by French aircraft manufacturer Dassault,
the Mercure 100 first flew in 1971. It was an impressive aircraft for its day
with advanced aerodynamics and a wider cabin than its competitors. And it
offered some pretty impressive features, including a heads-up display system for
its pilots. The Mercure had great performance characteristics, especially
climbing out of congested airports. But most importantly, it was efficient. The
Mercure had been highly optimized for short-range air routes. So here's a plane
that would save Airlines money. But to understand why virtually no airline
ended up buying it, we need to look at the Mercure's development, and why
Dassault built the aircraft in the first place. In the 1960s Dassault was a
company renowned for its iconic Mirage military fighter aircraft and Falcon
business jets, but the company had bigger ambitions and had spotted an opportunity.
See many civil air routes around the world were actually very short, under a
thousand miles and at the time a lot of these short haul routes were served by
Boeing's recently introduced 737 and Douglas DC-9. Dassault figured that if it
could design an airliner optimized specifically for these very short routes
then it could outperform Boeing's and Douglas's offerings in a key segment of
the market. With low operating costs and a break-even load factor, airlines
initially showed interest. But building such a plane was an ambitious
undertaking. Luckily for Dassault the French
government was also convinced of the market demand for a specialized
short-range airliner. The government was eager for Dassault to build a 737
competitor and to spur France's aviation industry. It provided a loan for just
over half the development costs, which were to be repaid through sales of the
aircraft. Development started in 1967 and Dassault was so confident in the Mercure
concept that had built four factories across France to meet the anticipated
demand. Reportedly the company was expecting to
built its 300th airliner in less than a decade. Like the rival Boeing 737, the
Mercure was powered by a pair of proven but now dated Pratt & Whitney turbo fans
But despite having virtually the same engines as the 737, the Mercure could
carry more passengers and despite being larger the Mercure could even out climb
the 737. These impressive performance advantages were due to the Mercure being
so well optimized for short sectors. By significantly reducing fuel tank size,
Dassault reduced the structural weight of its airliner by as much as 10%. By
using state-of-the-art computer design tools, Dassault created a specialized wing
giving the Mercure excellent climb and descent performance - an important
metric for efficient short haul flights. But these advantages, of course, come with
some trade-offs. See a fully loaded Mercure had a maximum range of only one
thousand miles. A Boeing 737-200 had a much greater range, up to three times as
much on some later variants. But there was also another important design
difference. A 737 was a robust aircraft which could be suited to serve both
short and medium sectors, so Boeing was able to adapt the airframe and adopt new
engines to cater to different segments of the market
a 737-100 introduced in 1968 carried a 103 passengers over 1,700
miles. But after four decades of development the 737 had evolved into an
entire family of aircraft, with some variants having more than twice the
passenger capacity and range of the original. While the Mercure had also been
designed with stretch potential, its mission was always going to be decidedly
short-haul. Modifying the aircraft to increase its range so it could serve a
broader segment of the market like the 737 wasn't going to be easy.
And so the Mercure's high degree of design optimization for short-haul
routes, rather than being a competitive advantage quickly became an enormous
problem. Dassault aggressively marketed the Mercure as an economical choice for
airlines. With its unparalleled short range performance, it should have been
attractive to airlines that were operating 737's
and DC-9's on short-haul routes. But the Mercure refused to sell. See if
you operate the Mercure out of France, Dassault's proposition makes some sense.
But from outlying European countries like Spain, the Mercure's limited range
is... well very limiting. And in the United States that limited range becomes an
even bigger problem. Airlines, as it turns out, we're willing to take a hit on
operating efficiency even if it meant they'd have an aircraft that was
versatile to fill both medium and short range roles. Some argue that Dassault's
decision to market the Mercure as a direct 737 competitor also contributed
to its commercial failure. Well in many ways the Mercure was a conventional
airliner its range made it more of a high-capacity regional jet. But there
were other factors going against the aircraft, like the 1970 Oil Crisis which
limited Airlines purchasing power, a devalued US dollar and a high rate of
European inflation - all of which had made the Mercure
more expensive to purchase. Air Inter, an airline in which the French government
had a large ownership stake, was the only airline to ever purchase Mercure's and it
ordered only 10. An 11th Mercure, a prototype that had been refurbished was
later also delivered to the airline. Dassault struggled to recover from its
colossal commercial miscalculation, and reportedly the company would need to
sell somewhere between 120 and 150
Mercure's just to break even. So the company raced to develop improved
versions like the Mercure 200C, which was to have improved range. But the
Mercure design's had been so carefully optimized for short routes, you could say
the company had engineered itself into a corner. Because the extensive design
modifications that would have been needed to give the Mercure additional
fuel capacity, well, were simply too expensive to ever make it a profitable
proposition. The 11 Mercure's that did enter service would go on to fly until
1995. They safely carried over 44 million passengers and made over 400,000 flights -
albeit short efficient flights. But the story of French
aviation didn't end with the Mercure, it was really just the beginning.
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