Airline Business Trends and Challenges 2008

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

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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  • 1. Airline Business - Trends and Challenges Lucas den Boer Airline Business Executive Consultant LUCASBUSINESS B.V. January 2009, Netherlands
  • 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. www.lucasbusiness.com ( ) Net Result: World Air Transport
  • 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. www.lucasbusiness.com ( ) Heavy Taxes
  • 6. Source: BAH/ adapted AEA www.lucasbusiness.com ( ) Airlines business models
  • 7. www.lucasbusiness.com ( ) “ Stuck in the middle”
  • 8. www.lucasbusiness.com ( ) EBIT Margins
  • 9. Air France - KLM : to combine the networks ... to sustain profitable growth
    • 2 complementary airlines
    • fare combinability
    • common bottom-line
    Network airlines - Cooperation & Integration
  • 10.
    • Oneworld; like United Airlines, Lufthansa and SAS
    • SkyTeam; like American Airlines, British Airways and Iberia
    • Star Alliance; like Delta, Northwest, Air France-KLM and Alitalia
    • … Together 60% of the market
    Alliances
  • 11.
    • Dilemma:
      • Joining alliances, or
      • Staying independent
    Regional airlines
  • 12.
    • More profitable than passenger business
    • More grow than passenger business
    • Less pressure from Low Cost Airlines
    Cargo airlines
  • 13.
    • Strong increase of low cost airlines
    Low cost airlines
  • 14. Source: UK CAA Low cost airlines
  • 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.
    • Railteam: new alliance of West-European highspeed trains
    Competition: highspeed trains
  • 17. Competition: new airlines from China
  • 18. Competition: new airlines from India
  • 19. New laws and rules
  • 20.
    • Before: London – Frankfurt – New York
    • After: London – New York
    Open skies
  • 21. Network is key
  • 22. Growing importance of ME in network
  • 23. Hub, heart of the network
  • 24. A hub to link small markets to the rest of the world
  • 25. Special branded network connections
  • 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.
    • Fuel saving
    • Twin-engines
    • Reducing emission per flight
    • More quiet, less noise
    B787 New aircraft types A350XWB
  • 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. A seamless ground experience
  • 30.
    • Increasing revenue
    • Optimization of capacity
    • Increasing commercial load factor (%)
    • e-Ticketing
    • e-Services
    • Payment methods
    • Streamlining processes
    • Mobile solutions
    • Portals
    • Websites (total travel experience)
    Commercial goals
  • 31. Greater differentiation, better customer care
  • 32. Customer loyalty
  • 33.
    • Operational Excellence
    • On-time performance
    • Cost reduction
    Operations
  • 34. Amadeus creates dominant position …
  • 35.
    • Project Falcon - 3 Year Recovery Plan
    • Fundamental Changes
      • World-class customer service
      • Brand & marketing strategy
      • Call centre in MCT
      • People
      • Redesign network planning concepts
      • Leisure brand airline
      • Focus on yield
      • Cost Reductions and efficiencies
        • ... to position Gulf Air as a World-class airline with unique Arabian hospitality
    Typical airline transformation
  • 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.
    • 3-5 Long-haul Network Dominators
    • Low-cost Service Providers
      • No Frills (2 to 3 majors)
      • Charters (2 to 3 majors in Europe)
    • Niche Carriers
      • Regional or national
      • Cargo and Integrators
    Future of airline business in Europe
  • 38. For more information please contact: Lucas den Boer phone: +31 (0)6 22 241 508 email: [email_address] My references