Airline Business - Trends and Challenges Lucas den Boer Airline Business Executive Consultant LUCASBUSINESS B.V. January 2...
Financials and Business Models www.lucasbusiness.com ( ) This report or any part of it, may not be copied, circulated, quo...
www.lucasbusiness.com ( ) Net Result: World Air Transport
Fuel price is soaring (*) including hedging policy effect oct. - déc. 03 (brent 28 $) oct. - déc. 04 (estimated 8/10/04) o...
www.lucasbusiness.com ( ) Heavy Taxes
Source: BAH/ adapted AEA www.lucasbusiness.com ( ) Airlines business models
www.lucasbusiness.com ( ) “ Stuck in the middle”
www.lucasbusiness.com ( ) EBIT Margins
Air France - KLM : to combine the networks ... to sustain profitable growth <ul><li>2 complementary airlines </li></ul><ul...
<ul><li>Oneworld; like United Airlines, Lufthansa and SAS </li></ul><ul><li>SkyTeam; like American Airlines, British Airwa...
<ul><li>Dilemma: </li></ul><ul><ul><li>Joining alliances, or </li></ul></ul><ul><ul><li>Staying independent </li></ul></ul...
<ul><li>More profitable than passenger business </li></ul><ul><li>More grow than passenger business </li></ul><ul><li>Less...
<ul><li>Strong increase of low cost airlines </li></ul>Low cost airlines
Source: UK CAA Low cost airlines
(Environmental) Trends www.lucasbusiness.com ( ) This report or any part of it, may not be copied, circulated, quoted with...
<ul><li>Railteam: new alliance of West-European highspeed trains </li></ul>Competition: highspeed trains
Competition: new airlines from China
Competition: new airlines from India
New laws and rules
<ul><li>Before: London – Frankfurt – New York </li></ul><ul><li>After: London – New York </li></ul>Open skies
Network is key
Growing importance of ME in network
Hub, heart of the network
A hub to link small markets to the rest of the world
Special branded network connections
Current situation Possible future situation Hub airports of different size Megahubs Regional/ P2P airports “ Specialist” H...
<ul><li>Fuel saving </li></ul><ul><li>Twin-engines </li></ul><ul><li>Reducing emission per flight </li></ul><ul><li>More q...
Airline Challenges www.lucasbusiness.com ( ) This report or any part of it, may not be copied, circulated, quoted without ...
A seamless ground experience
<ul><li>Increasing revenue </li></ul><ul><li>Optimization of capacity </li></ul><ul><li>Increasing commercial load factor ...
Greater differentiation, better customer care
Customer loyalty
<ul><li>Operational Excellence </li></ul><ul><li>On-time performance </li></ul><ul><li>Cost reduction   </li></ul>Operations
Amadeus creates dominant position …
<ul><li>Project Falcon - 3 Year Recovery Plan </li></ul><ul><li>Fundamental Changes </li></ul><ul><ul><li>World-class cust...
Future of Airline Business www.lucasbusiness.com ( ) This report or any part of it, may not be copied, circulated, quoted ...
<ul><li>3-5 Long-haul Network Dominators </li></ul><ul><li>Low-cost Service Providers </li></ul><ul><ul><li>No Frills (2 t...
For more information please contact: Lucas den Boer phone:  +31 (0)6 22 241 508 email:  [email_address] My references
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Airline Business Trends and Challenges 2008

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A general overview of the main global Airline Business Trends and Challenges.

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  • nice slide, i am very needed can you e-mail this presentation to me gustianza98@gmail.com
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  • nice work, can you e-mail this presentation to me malaka_yatti@hotmail.com
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  • Hi Can You Please send me this presentation at my Id modak_ranjita@yahoo.com .it would be a great help for my presentation.
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  • Wonderful general presentation on airline industry challenges.
    hope to share the remaining slides.
    one special question that how would the Small & Medium Airlines refered to in slide 8 survive being squeezed between the majors and the LCCs as the suggested solutions are expensive? please get me replied at : khattabi100@yahoo.com
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  • Great presentation, is there any more actual version of it ?
    Could someone send it to me in *.pdf or *.ppt per mail?
    dornhofd@dhbw-loerrach.de
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Airline Business Trends and Challenges 2008

  1. 1. Airline Business - Trends and Challenges Lucas den Boer Airline Business Executive Consultant LUCASBUSINESS B.V. January 2009, Netherlands
  2. 2. Financials and Business Models www.lucasbusiness.com ( ) This report or any part of it, may not be copied, circulated, quoted without prior written approval from LUCASBUSINESS B.V.
  3. 3. www.lucasbusiness.com ( ) Net Result: World Air Transport
  4. 4. Fuel price is soaring (*) including hedging policy effect oct. - déc. 03 (brent 28 $) oct. - déc. 04 (estimated 8/10/04) oct. - déc. 04 (estimated 26/10/04) + 66 % 105 175 160 On a flight from Paris to Asia : 2003 2004 www.lucasbusiness.com ( )
  5. 5. www.lucasbusiness.com ( ) Heavy Taxes
  6. 6. Source: BAH/ adapted AEA www.lucasbusiness.com ( ) Airlines business models
  7. 7. www.lucasbusiness.com ( ) “ Stuck in the middle”
  8. 8. www.lucasbusiness.com ( ) EBIT Margins
  9. 9. Air France - KLM : to combine the networks ... to sustain profitable growth <ul><li>2 complementary airlines </li></ul><ul><li>fare combinability </li></ul><ul><li>common bottom-line </li></ul>Network airlines - Cooperation & Integration
  10. 10. <ul><li>Oneworld; like United Airlines, Lufthansa and SAS </li></ul><ul><li>SkyTeam; like American Airlines, British Airways and Iberia </li></ul><ul><li>Star Alliance; like Delta, Northwest, Air France-KLM and Alitalia </li></ul><ul><li>… Together 60% of the market </li></ul>Alliances
  11. 11. <ul><li>Dilemma: </li></ul><ul><ul><li>Joining alliances, or </li></ul></ul><ul><ul><li>Staying independent </li></ul></ul>Regional airlines
  12. 12. <ul><li>More profitable than passenger business </li></ul><ul><li>More grow than passenger business </li></ul><ul><li>Less pressure from Low Cost Airlines </li></ul>Cargo airlines
  13. 13. <ul><li>Strong increase of low cost airlines </li></ul>Low cost airlines
  14. 14. Source: UK CAA Low cost airlines
  15. 15. (Environmental) Trends www.lucasbusiness.com ( ) This report or any part of it, may not be copied, circulated, quoted without prior written approval from LUCASBUSINESS B.V.
  16. 16. <ul><li>Railteam: new alliance of West-European highspeed trains </li></ul>Competition: highspeed trains
  17. 17. Competition: new airlines from China
  18. 18. Competition: new airlines from India
  19. 19. New laws and rules
  20. 20. <ul><li>Before: London – Frankfurt – New York </li></ul><ul><li>After: London – New York </li></ul>Open skies
  21. 21. Network is key
  22. 22. Growing importance of ME in network
  23. 23. Hub, heart of the network
  24. 24. A hub to link small markets to the rest of the world
  25. 25. Special branded network connections
  26. 26. Current situation Possible future situation Hub airports of different size Megahubs Regional/ P2P airports “ Specialist” Hub airport Regional / P2P airports Hubs in development
  27. 27. <ul><li>Fuel saving </li></ul><ul><li>Twin-engines </li></ul><ul><li>Reducing emission per flight </li></ul><ul><li>More quiet, less noise </li></ul>B787 New aircraft types A350XWB
  28. 28. Airline Challenges www.lucasbusiness.com ( ) This report or any part of it, may not be copied, circulated, quoted without prior written approval from LUCASBUSINESS B.V.
  29. 29. A seamless ground experience
  30. 30. <ul><li>Increasing revenue </li></ul><ul><li>Optimization of capacity </li></ul><ul><li>Increasing commercial load factor (%) </li></ul><ul><li>e-Ticketing </li></ul><ul><li>e-Services </li></ul><ul><li>Payment methods </li></ul><ul><li>Streamlining processes </li></ul><ul><li>Mobile solutions </li></ul><ul><li>Portals </li></ul><ul><li>Websites (total travel experience) </li></ul>Commercial goals
  31. 31. Greater differentiation, better customer care
  32. 32. Customer loyalty
  33. 33. <ul><li>Operational Excellence </li></ul><ul><li>On-time performance </li></ul><ul><li>Cost reduction </li></ul>Operations
  34. 34. Amadeus creates dominant position …
  35. 35. <ul><li>Project Falcon - 3 Year Recovery Plan </li></ul><ul><li>Fundamental Changes </li></ul><ul><ul><li>World-class customer service </li></ul></ul><ul><ul><li>Brand & marketing strategy </li></ul></ul><ul><ul><li>Call centre in MCT </li></ul></ul><ul><ul><li>People </li></ul></ul><ul><ul><li>Redesign network planning concepts </li></ul></ul><ul><ul><li>Leisure brand airline </li></ul></ul><ul><ul><li>Focus on yield </li></ul></ul><ul><ul><li>Cost Reductions and efficiencies </li></ul></ul><ul><ul><ul><li>... to position Gulf Air as a World-class airline with unique Arabian hospitality </li></ul></ul></ul>Typical airline transformation
  36. 36. Future of Airline Business www.lucasbusiness.com ( ) This report or any part of it, may not be copied, circulated, quoted without prior written approval from LUCASBUSINESS B.V.
  37. 37. <ul><li>3-5 Long-haul Network Dominators </li></ul><ul><li>Low-cost Service Providers </li></ul><ul><ul><li>No Frills (2 to 3 majors) </li></ul></ul><ul><ul><li>Charters (2 to 3 majors in Europe) </li></ul></ul><ul><li>Niche Carriers </li></ul><ul><ul><li>Regional or national </li></ul></ul><ul><ul><li>Cargo and Integrators </li></ul></ul>Future of airline business in Europe
  38. 38. For more information please contact: Lucas den Boer phone: +31 (0)6 22 241 508 email: [email_address] My references

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