Passenger Air Transport Industry

8/19/2019 Passenger Air Transport Industry

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PASSENGER AIR

TRANSPORTINDUSTRYA REPORT BY

MARY GRAZIELLYNN J. DE [email protected]


2/23

STRATEGIC SEGMENTATION

SHORT &MEDIUM HAUL

LEISUREFLIGHT

SHORT &MEDIUM HAUL

BUSINESSFLIGHT

LONG HAULLEISUREFLIGHT

LONG HAULBUSINESS

FLIGHT

C U S T O M E R V

A R I A T I O N

LENGTH OF JOURNEY

SHORT &MEDIUM HAUL

LONGHAUL

L E I S U R E

F L Y E R

B U S

I N E S S

F L

Y E R


3/23


2MAIN POINTS

CUSTOMER

VARIATION

LENGTH OF

JOURNEY


4/23


CUSTOMER VARIATION LENGTH OF JOURNEY

BUSINESS VS LEISURE

MAIN DIFFERENCE BEINGIN THEIR ATTITUDE TOWARDS PRICE

SHORT & MEDIUM HAULVS LONG HAUL

DIFFERENT SERVICESOFFERED DEPENDING ON THE DURATION OF THE

FLIGHT SUCH AS IN-

FLIGHT FOOD &AMENITIES, AIRCRAFT TYPE, ETC.


5/23

TRADITIONAL VS LOW COST TRADITIONAL

AIRLINES

LOW COST

AIRLINES

MAKES USE OF GLOBALDISTRIBUTION SYSTEMS

(HIGH COSTS FORDISTRIBUTION

USUALLY UNIONIZED ANDUSED TO BE FREE FROM

COMPETITION WITH OTHER TRADITIONAL CARRIERS

SELLS WITH THEIR PREMIUMIMAGE

MAKES USE MAINLY OF TELEPHONE AND INTERNET

COMMUNICATION FORDISTRIBUTION

SELLS WITH THEIR LOWPRICING

HAS LOWER COSTSCOMAPRED TO CARRIERS(MORE ON SHORT HAUL,

COST-EFFICIENTSYSTEMS,ETC.


6/23

TRADITIONAL VS LOW COST TRADITIONAL

AIRLINES

LOW COST

AIRLINES

USED TO HOLD THE

INDUSTRY TO THEMSELVES

TARGETS BOTH LEISUREAND BUSINESS TRAVELLERS

OFFERS SHORT, MEDIUM,

AND LONG HAUL FLIGHTS

GETS PROFIT FROMBUSINESS CLASS FLIGHTS

NEWCOMERS TO THE INDUSTRY(DUE TO THE DEREGULATIONA

CT

TARGETS LEISURE TRAVELLERS(THOSE THAT ARE MORE COSTCONSCIOUS THAN BUSINESS

TRAVELLERS

USUALLY OFFERS SHORT ANDMEDIUM HAUL FLIGHTS ONLY

PROFITS FROM E!TRA CHARGESFROM SMALL SERVICES USED BY

THE CUSTOMER


7/23

INDUSTRY ANALYSIS

SHORT HAUL

WESTERN EUROPEANFLIGHTS

LEISURE SEGMENT


8/23

PORTER"S # FORCES

SUPPLIERS

ENTRANTS

CUSTOMERS

SUBSTITUTES

COMPETITIVERIVALRY

ENVIRONMEN

T


9/23

COMPETITIVE RIVALRYC$%'))$* +%$* $+* *'/ +0'1 )

)*31'+)*. T4' 1''*3' $56$4 $/ 3$ 3+11)'1 +*%7)' %+8$1 3+11)'131'+' + '*'

+%$4'1'.

B$4 9)* $5 3+11)'1 $:'14) 9)* $5 ;)4.

<


10/23

ENTRANTS T4' 31'+)$* $5 4'D'1'7+)$* A3

+$/' 5$1 '+)'1'*1+*3' )*$ 4')*710. H$/'='1,

3+)+ ) >7)' 47'+* ) 3$*)'1' $ 6'+ 47' 6+11)'1 $ '*10.

?


11/23

CUSTOMERSC$-3$*3)$7 1+=''1 +1'$$9)* 5$1 1)3'

3$%'))='*'.W4)' 4' 67)*' 1+=''1'@'3 )*-;)4 7@710 + 4'0$ *$ +0 5$1 4')1 ;)4.

E+' $5 7' )* )1)67)$*34+**' ) + 7. L)9' 4+=)*1''*3' )* )*'1*' 1+=')', '3.

?


12/23

SUBSTITUTESS76)7' +1' 4)4'' 1+)* +*

$%')%' 4' 67.H$/'='1 4'' %$'$5 1+*$1+)$* +1'

)%' 3$*7%)* +6'))*'@'*)='.


13/23

SUPPLIERS T4'1' +1' $*0 /$ 7)'1 5$14' %+)* +)1+*' %$' +*>7)' + 5'/ 5$1 '*)*'. P1)3)* )

77+0 )' /)4 4' 3$%+*)'+* $ 4'1' ) *$ %734 $5 +1$6'%.

A)1$1 $ +1' )40 '

+33')6' 3$*)'1)* 4')*31'+' )* 3$%'))$*.

F7' 4+ $ 6' 4'' )* $1'1 $1'7+' 3$.

2


14/23

ENVIRONMENT T4' E71$'+* U*)$* ) + 9'0+0'1 + $ /40 4'1' +1'

%$1' +)1)*' $+0. T4')1D'1'7+)$* A3 6+' $*4+ $5 4' U*)' S+'"+$/' 5$1 4' '*10 $5 4''

*'/ L$/ C$ C+11)'1. S$%'7$1 /+ $:'1' $ 4'%+* 1'1)3)$* /'1'''*'.

?


15/23

PORTER"S # FORCES

2 SUPPLIERS

? ENTRANTS

? CUSTOMERS

SUBSTITUTES


16/23

VALUE CHAIN

INBOUNDLOGISTICS

OPERATIONSOUTBOUNDLOGISTCS

MARKETING& SALES SERVICES

PROCUREMENT

RESEARCH & DEVELOPMENT

HUMAN RESOURCES MANAGEMENT

FIRM INFRASTRUCTURE


17/23

FIRM

INFRASTRUCTURE

• T4' )*710 /$19/)4 + ' $5

+'*'1 +)131+51'+0 5$1 7'

• F)4 31'/ +* +:

• C$%%7*)3+)$*

0'% 5$17134+)* )39'

HUMAN RESOURCES

•

B$+1 $5 D)1'3$1• CEO, CFO, COO

• S+:

• I*-F)4 31'/

•

S+' +:


18/23

RESEARCH & DEV

• T4' +)1)*' $ *$ $

4' 1''+134 5$1 4'+)131+5 %+*75+371)*.O*0 5$1 7'.

• B+)3 '34 0'%

7' 5$1 %+)*+)*)*4' ;)4 ++6+' +*)39' %+*+'%'*.

PROCUREMENT

• M$ )'% 1'>7)1'5$1 $'1+)$* ) $*'

/)4 $* )%'+1*'1.

• C+'1)* +* )*-;)4+%'*))' +1' 77+0

51$% )'1 3$%+*)'.• F7' ) 4)40

%+*+' 7' $ )'*))=)0


19/23

INBOUND LOGISTICS

• M+9' 7' $5 0)'

%+*+'%'*($)%))* 1'='*7''1 ;)4 60 +87)*1)3'

•

M+)*'*+*3' $5 +*'• S+' & )39' ++

1+39)*

OPERATIONS

• F)4 1''1=+)$* $1

7134+'• F)4 6$+1)* +*

1$'1

• S$%')%' /)4

+))$*+ '1=)3' )9'1+=' $7*' +5'1;)


20/23

OUTBOUND LOGISTICS

• B++' ')='10

• A5'1 ;)4 +)+*3'51$% +:

• A)131+5 34'39 +5'1;)4

MARKETING &SALES

• D'+ /)4 1''1=+)$*+* +'

• T+9' )*$3$*)'1+)$* 0)'%+*+'%'*.

SERVICES

• O:'1 '3$*$%0 +*67)*' 3+ '+

• S'1=)3' +* '1=)3'>7+)0 ''* $*3+


21/23

FOCUS & OUTSOURCING

• C$*)'1)* 4' 4)4 3$711$7*)* 4' )*710,P1$371'%'* ) 4)40 '*))=' +*

+ 734 %7 6' 4+*' /)4 7%$3+1'

• M+19')* & S+' +* R&D 3+* 6'

$7$713' + ) %+0 3$ $$ %73451$% 4' 1% $ 4)1' +* 1+)*'3)+) $* 4' +1'+


22/23

WHAT TO DO FOR MAJORS

• T4' %+8$1 +)1)*' +1' )* '' 1$76' )5 4'0$ *$ +1 *)* /+0 $ )**$=+' 4')13711'* $'1+)$*. P1)3' '*))=' 37$%'1

+1' %$ )9'0 $ /)34 $ LCC" + >7+)0$5 '1=)3' ) *$ $* 4' $ $5 4')1 ).

• T4' ''*'*3' $* 4' 67)*' 3+ 5$11'='*7' %+0 471 4' %+8$1 )* 4' $* 17*

'')* 4+ $%' 3$%+*)' +1' +$ 3$37)* 4')1 '%$0'' 67)*' 1+='.


23/23

WHAT TO DO FOR MAJORS

• H)4'1 '3)'*30 )* +*' 1'+1+)$*3+* 6' $*' )* $1'1 $ )*31'+'$'1+)$* 4$71

• S0'% 3+* 6' )%)', ''3)+0/)4 4' '%'1'*3' $5 4' )*'1*' 4' 3$ )* 4' $6+ )1)67)$*

0'% 3+* 6' 37 $/0 +* 1'+3'/)4 + %$1' 1+3)3+ ++ 1+*5'1$7)$*

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