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. 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 <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. <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. <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. <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. <ul><li>Strong increase of low cost airlines </li></ul>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. <ul><li>Railteam: new alliance of West-European highspeed trains </li></ul>Competition: highspeed trains
  17. Competition: new airlines from China
  18. Competition: new airlines from India
  19. New laws and rules
  20. <ul><li>Before: London – Frankfurt – New York </li></ul><ul><li>After: London – New York </li></ul>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. <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. 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. <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. Greater differentiation, better customer care
  32. Customer loyalty
  33. <ul><li>Operational Excellence </li></ul><ul><li>On-time performance </li></ul><ul><li>Cost reduction </li></ul>Operations
  34. Amadeus creates dominant position …
  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. 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. <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. For more information please contact: Lucas den Boer phone: +31 (0)6 22 241 508 email: [email_address] My references

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