Archive for March 9th, 2009
Case studies South West Airlines and Air Asia.
The concept of extraordinary business model, so with the right company is in a position even though profitable in the first day of business.
This can happen due to south west in implementing the process minimalisasi operations, Crew cabins only by 3 people, using only one aircraft type, Ticket Customer must print their own, most of Booking done via the internet, so save HR, No Frill means no food is provided in the aircraft, direct marketing, without going through the agency so that it does not need to pay commissions, and direct payment, the price immediately, and if you want to get the price must be paid at that time also. The effect of Cash Flow South west will always have a positive position in the South west and have income from the future. South and west at this time is the most profitable airline in the world. Southwest currently has a fleet of 400 aircraft.
In 2001, the executive Warner Bross Southeast Asia, Tony Fernández, with the blessing of Mahatir Mohammad buy airline owned by the government that is almost bankrupt with the price of 1 Ringgit only, with the compensation he will bear all the losses that have been running, he pertaruhkan all revenue that he can from Warner bross, with business models that refer to Southwest Airlines, and he does not print any profit since the first day, Starting with 2 aircraft in 2001, in the year 2006, Air Asia has more than 34 aircraft with the 100 route. And is the airline with the largest profit in Asia.