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Developing a Survival Strategy   By: Eng. Mohammed Salem Awad Senior Consultant Felix Airways in Competitive Environment
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Outline
Introduction What !!! Makes airlines gain profits while the others fall in losses !!! How LCC create profits in a recession time …. Is Airline Industry a profitable Industry !!! What are various strategies in such cases… And how to survive in this miss !!!!!!!
Trends ,[object Object]
Trends ,[object Object],[object Object]
CASK  ,[object Object]
Aircraft CASK Analysis
Airline Industry Situation  ,[object Object],Low  Yield High Cost
Problem  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
SWOT Analysis
Bench Marking Adjusting Cost  IY vs ET Bench  Marking Study
Airline Business Model  ,[object Object],[object Object],[object Object],[object Object],[object Object]
Strategies  ,[object Object],[object Object],[object Object],[object Object]
Strategies  Concept of Multi Scales Decision Matrix  ,[object Object],[object Object]
Strategies  Concept of Multi Scales Decision  Fleet Strategy Market Strategy
Strategies  Concept of Multi Scales Decision  Network Strategy Competitive Strategy BCG Matrix Expand Opportunistic Maintain Yield
Strategies  Concept of Multi Scales Decision  Competitive Strategy BCG Matrix
Airline Strategy ,[object Object],By Cost Reduction  Improving Revenue  RASK CASK Increasing Decreasing
Airline Strategy ,[object Object],Cost Reduction Improving Revenue Hub Strategy Expand Regionally   Ancillary  Revenue Bench  Marking Optimization Economy  of Scale
Improving Revenue Improving Revenue by: 1- Expand Regionally, and addressing the high yield destinations. 2- Developing More Hubs, and use the concept of connectivity  3- Generate Ancillary Revenue, when ever it is possible. Improving Revenue Hub Strategy Expand Regionally   Ancillary  Revenue
Cost Reduction Cost Reduction by: 1- Economy of Scale: Based on a large scale of the company, the ratio of fixed cost to variable cost will be small.  2- Bench Marking: Tool to define the problems and weakness especially in the cost structure.  3- Optimization: Perfect utilization of company resources either maximize the profit or minimise the cost.  Cost Reduction Bench  Marking Optimization Economy  of Scale
Improving Revenue  1- Multi Stops Operating Model   Concept of Connectivity: Selecting the Right Aircraft
Improving Revenue Multi Stops Operating Model   Concept of Connectivity: Selecting the Right Routes
Cost Reduction Point To Point Operating Model   Optimizations – Minimizing Cost  Concept of U Curve – get the Right Aircraft Capacity
Cost Reduction Point To Point Operating Model   Optimizations – Minimizing Cost  Airline Operating Curve
Summary Summary: The main issue  is how to Improve Revenue i.e to increase RASK,  In the other direction, how to minimize the cost, i.e to decrease CASK, and that can be define by a Bench Mark study (Cost Factors ) with a similar airlines in the region. A SWOT analysis is an important to define the strength and weakness of the company, the term connectivity for multi stops operating model is the key factor that utilise and maximise the profit. While Optimization techniques as U curve approach is the main issue to minimise cost. By doing this airlines can gain a competitive edge in aviation environment.
Contact 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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Airline strategy

  • 1. Developing a Survival Strategy By: Eng. Mohammed Salem Awad Senior Consultant Felix Airways in Competitive Environment
  • 2.
  • 3. Introduction What !!! Makes airlines gain profits while the others fall in losses !!! How LCC create profits in a recession time …. Is Airline Industry a profitable Industry !!! What are various strategies in such cases… And how to survive in this miss !!!!!!!
  • 4.
  • 5.
  • 6.
  • 8.
  • 9.
  • 11. Bench Marking Adjusting Cost IY vs ET Bench Marking Study
  • 12.
  • 13.
  • 14.
  • 15. Strategies Concept of Multi Scales Decision Fleet Strategy Market Strategy
  • 16. Strategies Concept of Multi Scales Decision Network Strategy Competitive Strategy BCG Matrix Expand Opportunistic Maintain Yield
  • 17. Strategies Concept of Multi Scales Decision Competitive Strategy BCG Matrix
  • 18.
  • 19.
  • 20. Improving Revenue Improving Revenue by: 1- Expand Regionally, and addressing the high yield destinations. 2- Developing More Hubs, and use the concept of connectivity 3- Generate Ancillary Revenue, when ever it is possible. Improving Revenue Hub Strategy Expand Regionally Ancillary Revenue
  • 21. Cost Reduction Cost Reduction by: 1- Economy of Scale: Based on a large scale of the company, the ratio of fixed cost to variable cost will be small. 2- Bench Marking: Tool to define the problems and weakness especially in the cost structure. 3- Optimization: Perfect utilization of company resources either maximize the profit or minimise the cost. Cost Reduction Bench Marking Optimization Economy of Scale
  • 22. Improving Revenue 1- Multi Stops Operating Model Concept of Connectivity: Selecting the Right Aircraft
  • 23. Improving Revenue Multi Stops Operating Model Concept of Connectivity: Selecting the Right Routes
  • 24. Cost Reduction Point To Point Operating Model Optimizations – Minimizing Cost Concept of U Curve – get the Right Aircraft Capacity
  • 25. Cost Reduction Point To Point Operating Model Optimizations – Minimizing Cost Airline Operating Curve
  • 26. Summary Summary: The main issue is how to Improve Revenue i.e to increase RASK, In the other direction, how to minimize the cost, i.e to decrease CASK, and that can be define by a Bench Mark study (Cost Factors ) with a similar airlines in the region. A SWOT analysis is an important to define the strength and weakness of the company, the term connectivity for multi stops operating model is the key factor that utilise and maximise the profit. While Optimization techniques as U curve approach is the main issue to minimise cost. By doing this airlines can gain a competitive edge in aviation environment.
  • 27. Contact 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