AIR PHILIPPINES
The SE Asian aviation market has become a battleground with a number of highly aggressive LCC’s competing with established flag carriers. Further competition is expected as ASEAN continues towards full ‘open-skies’.
Philippine Airlines, owned by the Lucio Tan Group decided to fight fire with fire by establishing their own LCC. Mango were engaged to develop a detailed business & implementation plan to turn LTG’s regional turboprop subsidiary into a LCC.
Mango developed a plan to turn Lucio Tan Group’s Air Philippines turboprop subsidiary into a LCC, AirPhil Express. This forms the foundation for growth on currently unprofitable domestic and regional routes.
- Business plan development.
- Detailing of key implementation steps.
- Material contracts review and recommendations for improvement.
- Advice on Commercial strategy, set-up and execution.
- Identification of loss-making short haul routes currently flown by Philippine Airlines for transfer to Air Phil Express.
- Redesign of organisation structure and resourcing in accordance with LCC principle.
"How do full service carriers address persistent unprofitability in their short haul operations? One solution, if done properly, is to convert them into the LCC business model."
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