Aviation:Soar away with the ‘low frills’ model

With the help of a few interventions, aviation brands can enjoy the benefits of shifting to a ‘low frills’ model of operations. Here’s how.

While man’s attempt at flying in the skies are dominated by the duopoly of Boeing and Airbus, various airlines thankfully provide us the variety in terms of:- visual relief, differentiated services, tariff and experience.

Historically heavy weights like United, British Airways, Qantas, Cathay Pacific. Challenging the big players are the noteworthy new kids on the block like Southwest, Air Asia, Air Arabia, Ethihad, JetBlue, Tiger etc.

In essence we are looking at a ‘No frills’ operators, and typically the business model is built on mapping and association of business and customer goals as follows:-

Business Goals

  • Save on operating costs – Training,Maintenance and Multi cabins
  • Aircraft high utilization with higher usage of fleet
  • Save on airport expenses
  • Save on major airport costs and rush hours
  • Save on long haul cost involvement
  • Save on catering costs
  • Save on distribution costs
  • Save on sales and marketing costs by low cost channel focus

Customer Goals

  • Simplicity and ease with Single passenger class and single aircraft type
  • Simplified routes characterized by direct or linear connections
  • Fast turnaround times
  • Flying to secondary less congested airports
  • Simple fare scheme
  • Optional -paid for –in flight food and beverage
  • Direct sales channels via internet and mobile

The challenge for most of these No frills operators is the ‘low cost’ brand that gets stuck on to them. And this is an obvious fallout.

The Air Asia, Air Arabia, Ethihad, and Tiger Air etc in this space need to fly in the ‘Convenience Zone‘ ultimately leading to higher
profitability. And to get there, the CEO needs to ask himself whether he’s creating a Blue Ocean.

For more details please keep watching this space

Want to learn more about the ins and outs of introducing Customer Value Maximization in your Organization? Find out more through our services here

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