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Prepared By: Mohammed Salem Awad  Consultant The Worldwide Development of Point-to-Point Operations  & its Implications fo...
OUTLINES <ul><li>Introduction  </li></ul><ul><li>Industry Review </li></ul><ul><li>Deregulations – Liberations – Open sky ...
Introduction <ul><li>A Question arise where the Global Aviation Network tend to , What is the best strategy should apply ?...
Introduction Manufactures Response to Global Market Demands IN TWO DIFFERENT WAYS : Boeing Philosophy – BASED ON FRAGMENT ...
Industry Review  <ul><li>Airline Industry – subjected to many shocks </li></ul><ul><li>The next downturn cycle will be 201...
Industry Review  <ul><li>Demands, and World Economy  drive Air Travel, and Frequency </li></ul><ul><li>Nonstop  operations...
Industry Review  <ul><li>Deregulations </li></ul><ul><li>Liberations  </li></ul><ul><li>Open Sky Policy  </li></ul>
Industry Review More than half population of the world
Business Models  <ul><li>According to the Market Demand and Mode Of OPERATION the Business Model  can be classified : </li...
Deregulation <ul><li>Deregulations Of The Airline Industry  </li></ul><ul><ul><li>1978 --- “ Airline Deregulation Act.” , ...
Point To Point  Vs Hub And Spoke
Point To Point  Vs Hub And Spoke <ul><li>Deregulations -  Liberations -Open Sky Policy  </li></ul><ul><li>Airport Infrastr...
Point To Point  Vs Hub And Spoke <ul><li>Demands and Aircraft Technology drive point to point.  </li></ul>
Point To Point  Vs Hub And Spoke <ul><li>But Hub &  Spoke will reduce of the cost of  </li></ul><ul><li>Ground Crews </li>...
Pros And Cons <ul><li>Passengers View Point.  </li></ul><ul><li>Airline / Operators View Point. </li></ul><ul><li>Manufact...
Pros And Cons <ul><li>Airline/ Operators   </li></ul><ul><li>Airlines always seek for demand, they started in a multi stop...
Pros And Cons <ul><li>Airline/ Operators   </li></ul><ul><li>This dominated by Alliances and International Carriers </li><...
Pros And Cons <ul><li>Aircraft Manufactures  -  TWO DIFFERENT PHLOSPHY  </li></ul><ul><li>BOEING  </li></ul><ul><li>AIRBUS...
Wining Approach  RIGHT CAPACITY ( Right Aircraft ) – Point to Point Analysis f  =
Repositioning The Fleet using point to point analysis <ul><li>Optimum Operating Curve  </li></ul><ul><li>Two Main Factors ...
Case Studies Asian Airlines <ul><li>Case Study  –   Thai Airways  ( Domestic ) </li></ul><ul><li>Case Study –  Air Asia – ...
Case Studies Asian Airlines <ul><li>Case Study  –   Thai Airways ( Domestic ) </li></ul>
Case Studies Asian Airlines <ul><li>Case Study  –   Thai Airways ( Domestic ) </li></ul>
Case Studies Asian Airlines <ul><li>Case Study –  Air Asia – Bangkok Operating Base. </li></ul>
Case Studies Asian Airlines <ul><li>Case Study –  Air Asia – Bangkok Operating Base. </li></ul>
Case Studies Asian Airlines Thai Airways  ( Domestic )  Vs Air Asia –  Bangkok  Operating Base. The Gap is reflecting due ...
Case Studies Asian Airlines Thai Airways ( Domestic ) Operating by two type of aircraft  1- B737- 400 2- ATR 72 While Air ...
Results <ul><li>The Analysis shows , Legacy Airline operated at lower capacity than low cost, which both are examining poi...
Contacts Further Information: Mohammed Salem Awad : Tel: 00967 734777518 Email: smartdecision2002@yahoo.com www.freewebs.c...
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Thai vs Air Asia

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This presentation address two case studies,
Thai Air Domestic, and Air Asia, to study the difference between the models by developing the learning curve of both airlines.

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Transcript of "Thai vs Air Asia"

  1. 1. Prepared By: Mohammed Salem Awad Consultant The Worldwide Development of Point-to-Point Operations & its Implications for Asian Airlines 5th & 6th June 2007 JW Marriott Hotel, - Bangkok, Thailand AIRCRAFT FINANCE & FLEET DEVELOPMENT CONFERENCE
  2. 2. OUTLINES <ul><li>Introduction </li></ul><ul><li>Industry Review </li></ul><ul><li>Deregulations – Liberations – Open sky </li></ul><ul><li>Business Models in Aviation Industry </li></ul><ul><li>Point to Point Vs Hub and Spoke </li></ul><ul><li>Pros and Cons </li></ul><ul><li>Wining Approach . </li></ul><ul><li>Positioning and Repositioning The Fleet . </li></ul><ul><li>Case Studies – Asian Airlines </li></ul><ul><li>Results </li></ul><ul><li>Contacts. </li></ul>
  3. 3. Introduction <ul><li>A Question arise where the Global Aviation Network tend to , What is the best strategy should apply ? What are the Current business Models used ? </li></ul><ul><li>What are the Mode Of Operations in Aviation Industry ? </li></ul><ul><li>Effects Of Deregulations – Liberations – Open sky . </li></ul>
  4. 4. Introduction Manufactures Response to Global Market Demands IN TWO DIFFERENT WAYS : Boeing Philosophy – BASED ON FRAGMENT Theory Most Growth will be mid-size airplane B787 Dream Liner Airbus Philosophy – BASED ON CONSOLIDATION Theory Airbus anticipates a dramatic upswing in the very large airplane market. A380
  5. 5. Industry Review <ul><li>Airline Industry – subjected to many shocks </li></ul><ul><li>The next downturn cycle will be 2013 </li></ul>
  6. 6. Industry Review <ul><li>Demands, and World Economy drive Air Travel, and Frequency </li></ul><ul><li>Nonstop operations increase </li></ul>
  7. 7. Industry Review <ul><li>Deregulations </li></ul><ul><li>Liberations </li></ul><ul><li>Open Sky Policy </li></ul>
  8. 8. Industry Review More than half population of the world
  9. 9. Business Models <ul><li>According to the Market Demand and Mode Of OPERATION the Business Model can be classified : </li></ul><ul><li>Alliances Low Cost Carriers </li></ul><ul><li>International Carriers Business Jet </li></ul><ul><li>Regional Carriers </li></ul><ul><li>Dominated By Dominated By </li></ul><ul><li>Hub & Spoke Point To Point </li></ul>
  10. 10. Deregulation <ul><li>Deregulations Of The Airline Industry </li></ul><ul><ul><li>1978 --- “ Airline Deregulation Act.” , US </li></ul></ul><ul><ul><li>1987, 1990, 1992 --- Three EEC “Package” </li></ul></ul>
  11. 11. Point To Point Vs Hub And Spoke
  12. 12. Point To Point Vs Hub And Spoke <ul><li>Deregulations - Liberations -Open Sky Policy </li></ul><ul><li>Airport Infrastructure </li></ul><ul><li>Airport Access </li></ul><ul><li>AT 50 Cities Network. </li></ul><ul><li>1200 : 49 </li></ul><ul><li>For Point to Point </li></ul>
  13. 13. Point To Point Vs Hub And Spoke <ul><li>Demands and Aircraft Technology drive point to point. </li></ul>
  14. 14. Point To Point Vs Hub And Spoke <ul><li>But Hub & Spoke will reduce of the cost of </li></ul><ul><li>Ground Crews </li></ul><ul><li>Airport Facilities </li></ul><ul><li>Aircrews </li></ul><ul><li>And Aircrafts </li></ul>
  15. 15. Pros And Cons <ul><li>Passengers View Point. </li></ul><ul><li>Airline / Operators View Point. </li></ul><ul><li>Manufactures View Point. </li></ul><ul><li>Passengers View Point </li></ul><ul><li>Passengers favored point to point traveling which gives more chooses and less traveling time. </li></ul>
  16. 16. Pros And Cons <ul><li>Airline/ Operators </li></ul><ul><li>Airlines always seek for demand, they started in a multi stops operating Model to generate demand then when the market establish, they look for direct service, so it is a time factor. </li></ul><ul><li>Point To Point Pros </li></ul><ul><li>Higher Service Points </li></ul><ul><li>Less Airport Contingency </li></ul><ul><li>Higher utilization </li></ul><ul><li>Higher Frequency. </li></ul><ul><li>Less turnaround time in Airports. </li></ul><ul><li>Higher Dispatch Reliability. </li></ul><ul><li>Point To Point Cons </li></ul><ul><li>Higher Facility/ crew / handling and maintenance Cost. </li></ul><ul><li>Two Extremely different business mode. </li></ul><ul><li>No continues Connection. </li></ul><ul><li>Hard to Manage Aircraft backup. </li></ul><ul><li>Deflect to manage Fuel Price. </li></ul>
  17. 17. Pros And Cons <ul><li>Airline/ Operators </li></ul><ul><li>This dominated by Alliances and International Carriers </li></ul><ul><li>Hub & Spoke Pros </li></ul><ul><li>Higher Connection options </li></ul><ul><li>Managing Scheduling Effectively . </li></ul><ul><li>Managing Airport Resources properly </li></ul><ul><li>Easily Fleet Management . </li></ul><ul><li>Feeding low traffic destination by a highest one. </li></ul><ul><li>Generate more revenue streams </li></ul><ul><li>Hub & Spoke Cons </li></ul><ul><li>Higher Airport Contingency </li></ul><ul><li>Delays, missed connection problems. </li></ul><ul><li>More Reliability problems. </li></ul><ul><li>Higher turnaround time in the base. </li></ul><ul><li>Complex Revenue Generation. </li></ul>
  18. 18. Pros And Cons <ul><li>Aircraft Manufactures - TWO DIFFERENT PHLOSPHY </li></ul><ul><li>BOEING </li></ul><ul><li>AIRBUS </li></ul>
  19. 19. Wining Approach RIGHT CAPACITY ( Right Aircraft ) – Point to Point Analysis f =
  20. 20. Repositioning The Fleet using point to point analysis <ul><li>Optimum Operating Curve </li></ul><ul><li>Two Main Factors </li></ul><ul><ul><li>Cost Per ATK </li></ul></ul><ul><ul><li>Capacity in term of Seats </li></ul></ul>
  21. 21. Case Studies Asian Airlines <ul><li>Case Study – Thai Airways ( Domestic ) </li></ul><ul><li>Case Study – Air Asia – Bangkok Operating Base. </li></ul>
  22. 22. Case Studies Asian Airlines <ul><li>Case Study – Thai Airways ( Domestic ) </li></ul>
  23. 23. Case Studies Asian Airlines <ul><li>Case Study – Thai Airways ( Domestic ) </li></ul>
  24. 24. Case Studies Asian Airlines <ul><li>Case Study – Air Asia – Bangkok Operating Base. </li></ul>
  25. 25. Case Studies Asian Airlines <ul><li>Case Study – Air Asia – Bangkok Operating Base. </li></ul>
  26. 26. Case Studies Asian Airlines Thai Airways ( Domestic ) Vs Air Asia – Bangkok Operating Base. The Gap is reflecting due change in Fares As one is legacy and the other is low cost Thai Airways Air Asia
  27. 27. Case Studies Asian Airlines Thai Airways ( Domestic ) Operating by two type of aircraft 1- B737- 400 2- ATR 72 While Air Asia Will operated by Air Bus 320 Thai Airways Air Asia
  28. 28. Results <ul><li>The Analysis shows , Legacy Airline operated at lower capacity than low cost, which both are examining point to point model but low cost selling at low price than legacy one, i.e why there a difference between the curves </li></ul><ul><li>Legacy should response to this situation, or will diminish out from the market. </li></ul><ul><li>These cases demonstrated the growing of point to point operation, that reflect by low cost carriers. </li></ul>
  29. 29. Contacts Further Information: Mohammed Salem Awad : Tel: 00967 734777518 Email: smartdecision2002@yahoo.com www.freewebs.com/wingsofwisdom/ www.freewebs.com/art-of-knowledge/ www.standout-from-the-crowds.webs.com

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