Business Pitch Assignment
Daniela Aleman | Danae Alonso | Javier Llanos | Kelly Pena | Aymara Priede | Alec Walter
VALOR AIRLINES
“Sky High Value”
Valor Airlines is a new, low-cost carrier primarily serving passengers for long-haul travel to South
America. Based in Miami, Valor Airlines is projected to have about ten aircraft by 2025, which will
serve around 20 destinations across North and South America. Our mission is to provide competitive
pricing for customers who would like to travel long-haul but can’t a�ord the prices of legacy carriers.
Currently, America’s legacy carriers are the only options on some long-haul travel routes to South
America and this has led them to having a monopoly on prices and frequencies. For example, if you
wanted to �y non-stop from Miami, Florida, to Montevideo, Uruguay, you would have to use
American Airlines, which charges a staggering $1000+ average fare per person!
Meanwhile, low-cost competitors like Spirit Airlines and Frontier Airways have competitive prices
but they simply can’t take you as far and deep into South America as we would be able to because
of their �eet types.
However, thanks to our Airbus 321LRs, Valor Airlines will be a leader in long-haul direct service to
small and large, international cities. Our narrow-body jets allow us to connect to the smaller cities
in South America that don’t have direct service yet. This allows us to connect more people and cities
without customers having to have a second or third layover to get to their destination. Operating
routes with thinner tra�c is a key strategy for Valor Airlines; we would be able to operate these
routes with less seats that larger carriers can’t pro�tably sustain with a jumbo-jet like a Boeing 747.
Valor Airlines: “Sky-High Value.”
BargainAir Express Airways
Name subject to change
IDEA PITCH FOR GROUP
Purpose
To provide competitive fares on routes into deep South America where
legacy carriers have premium fares.
Example: Miami to Montevideo flights
Realize how there is only one carrier
on the route and it is one of
America’s legacy carriers, American
Airlines. $1,311 is a bit steep.
Market Analysis
The Low Cost Carrier {LCC} has been an airline model that has surged in
popularity and growth within the past few years. In the United States,
we have several large LCC’s.
In Europe, the second biggest carrier is an LCC named Ryanair. They
also have Norwegian Air.
Market Analysis [Part 2]
While Europe and North America might seem saturated with LCC’s, South America is a different
story. Spirit Airlines has a great market share for Central American routes and short distance
South American routes such as Colombia or Ecuador. On the other hand, there are no American
LCC’s flying into deep South America such as Paraguay, Argentina, or southern Brazil.
The primary airlines that do are…
LATAM
AMERICAN
DELTA
UNITED
AVIANCA
None are considered low-cost
Market Analysis [Part 3]
Inte.
Business Pitch AssignmentDaniela Aleman Danae Alonso J.docx
1. Business Pitch Assignment
Daniela Aleman | Danae Alonso | Javier Llanos | Kelly Pena |
Aymara Priede | Alec Walter
VALOR AIRLINES
“Sky High Value”
Valor Airlines is a new, low-cost carrier primarily serving
passengers for long-haul travel to South
America. Based in Miami, Valor Airlines is projected to have
about ten aircraft by 2025, which will
serve around 20 destinations across North and South America.
Our mission is to provide competitive
pricing for customers who would like to travel long-haul but
can’t a�ord the prices of legacy carriers.
Currently, America’s legacy carriers are the only options on
some long-haul travel routes to South
America and this has led them to having a monopoly on prices
and frequencies. For example, if you
wanted to �y non-stop from Miami, Florida, to Montevideo,
Uruguay, you would have to use
American Airlines, which charges a staggering $1000+ average
fare per person!
Meanwhile, low-cost competitors like Spirit Airlines and
Frontier Airways have competitive prices
but they simply can’t take you as far and deep into South
America as we would be able to because
of their �eet types.
2. However, thanks to our Airbus 321LRs, Valor Airlines will be a
leader in long-haul direct service to
small and large, international cities. Our narrow-body jets allow
us to connect to the smaller cities
in South America that don’t have direct service yet. This allows
us to connect more people and cities
without customers having to have a second or third layover to
get to their destination. Operating
routes with thinner tra�c is a key strategy for Valor Airlines;
we would be able to operate these
routes with less seats that larger carriers can’t pro�tably
sustain with a jumbo-jet like a Boeing 747.
Valor Airlines: “Sky-High Value.”
BargainAir Express Airways
Name subject to change
IDEA PITCH FOR GROUP
Purpose
To provide competitive fares on routes into deep South America
where
legacy carriers have premium fares.
Example: Miami to Montevideo flights
Realize how there is only one carrier
3. on the route and it is one of
America’s legacy carriers, American
Airlines. $1,311 is a bit steep.
Market Analysis
The Low Cost Carrier {LCC} has been an airline model that has
surged in
popularity and growth within the past few years. In the United
States,
we have several large LCC’s.
In Europe, the second biggest carrier is an LCC named Ryanair.
They
also have Norwegian Air.
Market Analysis [Part 2]
While Europe and North America might seem saturated with
LCC’s, South America is a different
story. Spirit Airlines has a great market share for Central
American routes and short distance
South American routes such as Colombia or Ecuador. On the
other hand, there are no American
LCC’s flying into deep South America such as Paraguay,
Argentina, or southern Brazil.
The primary airlines that do are…
LATAM
AMERICAN
4. DELTA
UNITED
AVIANCA
None are considered low-cost
Market Analysis [Part 3]
International competitors based directly on our business model
that
do fly to South America…
COPA
GOL
Only two potential competitors which makes things easier. This
is
actually great because none of these are from the United States
and
we would most likely be based in MIA or FLL.
ROUTE EXAMPLES
I made a map of how this
operation might run. We would
get “feeder” traffic from the US
and feed them to South
America. We would use the
same narrow-body aircraft
because they could fly short
5. routes or long routes which is
why they are perfect.
Fleet
The airline would be run on a basis or one or two common fleet
types
(to minimalize maintenance costs). Furthermore, since these are
“long-
thin” routes for demand, we would use smaller-narrow body
aircraft
rather than jumbo jets to achieve maximum profit on flights.
That leaves us with…
Airbus 321LR
AIRBUS 220
Boeing 737MAX
Fleet [Part 2]
All these options are HIGHLY efficient aircraft with maximum
capabilities since these are all new aircraft designs within the
past few
years.
That means fuel costs will be significantly lower than buying an
aircraft
from the 1970s, 1980s, or 1990s. [Example DC-10, MD-11, or
B747]
Airbus 321LR
6. AIRBUS 220
Boeing 737MAX
Resources
Thankfully, we have a vast amount of resources online for
market
projection growth, fuel costs, airports, etc. Plus, going to the
Boeing or
Airbus website, they provide reports about future growth and
the way
the market is heading. I took a screenshot at just one page on
the
Boeing website and there are many other pages out there.
Resources [Part 2]
I think it’s fantastic that we have all these resources because it
allows
us to put more facts into the paper and not worry so much about
B.S.
the project. I noticed in his syllabus he says he wants facts and
NOT a
lot of “I feel”
KEEP IN MIND WE HAVE TO WRITE ABOUT ALL THESE
SUBJECTS SO WE
HAVE TO PICK SOMETHING THAT GIVES US A LOT OF
RESOURCES AND
