THE FACTORS OF SUSTAINABLE PROFITABILITY

Context

Considerable growth of LCCs market share constitutes a real threat for network airlines.   

The gap between LCCs and network airlines costs is huge (36 % in the United States, 60 % in Europe and 70 % in Asia and in Latin America).

Price competition strategy from LCCs forces network carriers to respond efficiently.

At the same time, some « low cost » companies had to stop temporarily or definitely their activities because of the spectacular increase in fuel prices.

Some of them, in order to survive, are even trying to differentiate their services, adopting a business model called « hybrid ».

On the other hand, most network airlines try to react but «with haste and without real strategy”. Similarly, new entrants faced with apparent LCCs’ success, prefer to use this model.
 

Yet the implementation of an adapted business model “the Magic Mix” guarantees long term profitable growth.

Your objectives

Overcome the “low cost” challenge in your markets and assure continuous company’s growth in profitability.

Implement the right strategy, using organized and planned approach, without restricting your reflection and your action exclusively to cost limitation.

Our offer

- The adapted strategy lies in the implementation of the « Magic Mix » which is a combination of the following factors:

Each of these six interdependent factors is essential for the smooth running of the « Magic Mix ». The Magic Mix strength depends upon the strength of its weakest element, and the strength of every element contributes to strengthen all the others in a kind of virtuous spiral.

AFC can provide the best specialized experts in each of these domains.

Their interventions using project management guarantee to any airline its « Magic Mix » robustness and performance, and, consequently, the sustainability of its profitable growth, subject to free and competent governance and adapted financial plan.

Our know-how and resources

Air France Consulting is an independent subsidiary of Air France group specialized in management and air transport engineering.

AFC consulting services are qualified by their flexibility and proximity to clients’ needs and expectations.

Our international experts offer the best know how and competences already tested for each domain with many clients.

In full confidentiality, AFC has thereby participated in financial profitability improvement of these companies by providing, either adapted assistance, either, in addition, key executives selection and recruitment to implement successfully your airline turnaround.