Spire Airways is a new hybrid airline that will operate long-haul point-to-point routes between London Gatwick and destinations in Asia including Singapore, Bangkok, Mumbai, and New Delhi. The airline aims to provide a high-end business class experience called "Cruise Class" on flights operated by Airbus A340-300 aircraft. Over five years, Spire plans to grow its fleet from six to ten A340s and expand its route network from the initial two routes to four routes. The management team and business model emphasize providing a premium product with a focus on the business travel market through lean and efficient operations.
5. BRAND
• SPIRE is a Hybrid Model.
• Operates point to point Long haul routes. Between Gatwick and
Singapore and Bangkok.
• High End Business Class traffic.
• Model is Lean and Agile.
• Outsourcing is key
• Ability to scale up and grow rapidly.
6. Corporate Strategy
Positioning:
• High Value Product.
• Professionalism and Service at core. (Cruise Class)
• Multi- Channel Distributions. Corp. Travel Companies, Websites,
GDS.
• Connectivity: Will be built over time. Interline and Codeshare.
• O&D Traffic, In front/Behind options.
• Interline Partners.
8. Differentiation (Blue Ocean Model)
Model to avoid competition. (Calm not Blood in the water)
Framework aims to change product to create new markets:
• Raise. Standard of our product
• Eliminate. Excess unnecessary costs.
• Reduce. Necessary cost.
• Create.
• New market opportunities with a new product.
10. Product definition
• The aim is to provide an experience and not just a flight.
• We plan on operating a high quality service, offering
customers the choice between cruise class and business
class .
• Our airline will operate as a full service provider giving
customer the options of booking a full package.
• We plan on creating a unique Point to point service offering
business customers not only flights but taxis and hotels also
11. • Complete ticket flexibility
• Direct access to the aisle
• 34inch seat that transforms into a 78-inch fully
flat bed
• course pre-flight reserved meal plans
• Extra storage space with in flight entertainment
and charging system.
• Your office in the skies.
• Business Class lounge access
• luxury amenity kit
• Full service economy class
• Comfort is Key
• Flexible baggage options
• Delicious meals and a full bar service
• Personal entertainment system with
complimentary headphones
• Family friendly features and kids activity
packs
CRUISE BUSINESS CLASS
12.
13.
14. Lounge Acesss
• In Gatwick Airport our business clients have
full access to the Regus Express Work pods.
• In Changi Airport passengers can avail of the
SATS premier lounge with private rest rooms
and state of the art facilities
15.
16. Door to Door service
• Business customer have the option of pre booking
taxis with information from their boarding passes.
• Our airline has formed a partnership with leading
taxi firms the London Taxi co. Silvercab Singapore
and First class Bangkok to provide passengers the
most convenient service over the course of the trip
• A Partnership deal with Millennium Hilton Bangkok
and Hilton Singapore has also giving business
customer the option of staying at a 5 star hotel at
discounted rates
18. DISTRIBUTION STRATEGY
• Use of corporate travel companies Hogg Robinson ( B2B selling) guarantees
business traffic
• Direct sales through “spireairways.com” website
• Travel agency: major focus on group package. Large volume sales
• Small call centre to deal with all passengers regarding ticketing, flight delays,
delayed and damages bags
• Partnership with GDS “Amadeaus”
20. • Wi-Fi on board
• Business class/ Cruise class
• Free 20kg to both class
• Frequent flyer program
• Partnership with GBS freighter
Differentiation
23. Network Strategy
• Concise and Focused
• Long Haul point – point
• Operating from London and targeting core Asian economies that
are highly dependent on international trade and finance.
• Demand-led network development
25. Demand Opportunities
• Demand to link the major global trade hubs and financial centres.
• City's with huge reliance on Foreign Direct Investment.
• Dense populations with very progressive GDP growth rates.
Example: Singapore GDP Growth 2015:
• Highly attractive investment climates and stable political
environments.
• High volume of Millionaires in each location, Singapore rank top
ten for GDP per capita.
26. • Singapore has 3rd highest purchasing parity power per
capita in the world.
• Proactive and Reactive network strategy, flexible due to
our uniform fleet.
• LND-BKK: currently 32 flights per week served by 3
airlines
• LND-SIN: currently 54 flights per week served by 2
airlines
• We are Aiming to take 25% of the capacity on each
route.
27. Competition
• LONDON-BKK: 32 direct flights per week with 3 airlines. (EVE air, British
Airways, Thai (most popular)
• LONDON-SIN:54 Direct flights per week with 2 airlines.(British airways,
Singapore Airlines (most popular)
• LONDON-DEL:52 direct flights per week with 4 airlines.(Air India, Jet
airways, Virgin Atlantic, British Airways)
• London-BOM:37 direct flights per week with 3 airlines.(Jet Airways, Air
India, BA, VA)
• British Airways are competitors on every flight, our Business Class is at
least €1,000 cheaper on each route…
28. Schedule LONDON-SINGAPORE
Fight Time:
LGW-SIN:14 Hours
LGW-BKK:13 Hours
LGW-BOM: 8.8Hours
LGW-DEL:8.3 Hours
YR1-YR3:
• 3 A340-300s per route
• 10 Return Origin-
Destination Flights per
route each week
YR4+YR5:
• Addition of 4 A340-300s to
operate 2 new routes.
-Timetable orientated around
Business clientele.
29. Airports
Hub of operations: London Gatwick (LGW):
• Worlds most efficient single op runway
• Long haul traffic growth 2014: 12.1%
• 28mins from London city by rail
• Over £2billion Invested since 2008
Changi Singapore (SIN):
• Time zone: +8 hours UTC
• 10% PAX movement increase since 2011
• World Best Airport 2015 (Skytrax)
• Substantial Cargo traffic
30. • Bangkok Suvarnabhumi (BKK)
• Time zone +7 hours UTC
• 52 million passengers 2015 up 14%
• Huge cargo capacity
• Delhi: Indira Gandhi International Airiport (DEL)
Best aiport between 25-40 million PAX award
(skytrax). New T3 with capacity for 34 million PAX
• Mumbai: Chhatrapati Shivaji International Airport
(BOM)
33. Fleet – Aircraft Selection
• We will operate the A340-300 series a/c.
• The A340-300 has MAX Range of 13,350 km
(fully loaded) and capacity of 18 LD3
containers in the forward hold.
• Quiet cabin, reduced emissions and 5% lower
fuel burn than competing aircraft – winglets
attribute to this.
• Its 4 engines means that it avoid ETOPS
certification which makes it suitable to
quick-starting long-haul operations.
• Competitive market lease/value.
34. Fleet Plan (5 Year Projection)
• Operations to begin with 6 A340-300s from Y1-Y3 with three on
each route for SIN and BKK.
• An additional 2 A340-300s will likely join the fleet in Y4 to
facilitate the planned BOM route.
• A further 2 A340-300s in Y5 aimed at supporting the DEL route.
• Average fleet age Y1-Y3 to be 17 years and lowering to an average
of 14 years in Y5 for the 10 aircraft.
35. Fleet - LOPA
• Two cabin configuration of 260 seats consisting: Business – 28 seats
/ Cruise Economy – 232 seats.
• Lower deck crew rest area to be installed in bulk cargo zone.
36. Fleet Maintenance Management
• Total Care Package negotiated with Airbus due to bulk order of a/c
– this will cover heavy maintenance costs and needed spares.
• A checks will be scheduled for fleet every 800 hours flight time,
approx. 5 annually and conducted overnight at maintenance base.
• C checks to be scheduled for winter season and so one a/c in
maintenance at any one time so to optimise a/c utilisation.
• We will have line maintenance provided by: Storm Aviation in
Gatwick, Lufthansa Technic in Bangkok and SIA Aviation in
Singapore.
37. Fleet Renewal Programme
• As average of aircraft is between 14-17 years old,
an eventual renewal plan should be considered for
Y8 onwards.
• If demand is suffice, consideration of the A330
242t MTOW or even A350 would be a suitable
replacement a/c.
• A340-300s can eventually go back to Airbus post
lease term.
38. Fleet - Sourcing
• The initial 6 a/c will be short-term leased from Airbus Asset
Management.
• Additional 4 a/c in Y4/Y5 will also come from Airbus AM consisting
of short-term leases on all a/c.
• LOI signed for all 10 a/c from Airbus.
• Availability of a/c is instant as they have the 10 A340-300s based
for lease in Toulouse.
47. Revenue manager
• Responsible for:
• forecasting demand by willingness to pay
• focus on dynamic changes on price and available
inventory.
48. Pricing Differentiate Strategy
Based on:
•product type (Business Class,
Cruise Class)
•Booking time: Duration until time of
departure
• Type of Sale: (Vendor: Corporate
Travel Companies, Travel Agents)
54. Revenue Maximizing
We are going to sell perfumes, Makeup and etc.
on board.
Extra legroom and pre-order meals charges
Core product with upgrades.
On board currency exchange
On board advertisements for local shops, hotels,
companies and Cinema movies.