Airline start-Ups are amazing places…many people doing plenty at once! The adrenaline is high and the ‘ Cowboy Attitude ‘ keeps you going. The two combine together to create an addictive and extremely volatile atmosphere.
None of the realities are what the appear to be in theory!
Clear Business Plan – Topline
The idea germinates and takes root. What do we want to be? Who do we want to serve?What is our product? What is the gap / niche we want to be in? When do we break even?
Vision is nothing but a dream with execution steps. Formulate well.
Clear Project Timeline
Understanding the critical path of the project from ideation to planning to execution to revenue generation is important. Each of the above steps has several aspects to it.
Material – In this case it’s aeroplanes and everything that makes them fly
Money – Ensuring the right amount of money is available at the right time
People – Have the right person at the right place at the right time in the right sequence
Data – Free bidirectional ,sacrosanct data flow with one source of the truth
The four aspects come together and form a Supply Chain! Airlines have multiple intertwined supply chains forming a complex logistical challenge.
Commercial Execution
Simply means carrying passengers / cargo profitably in any unit of time measured.
A glossary:
Network Planning – The designing and creation of an airline schedule that optimizes aircraft utilization to maximize profitability & business forecasting
Revenue management – The application of disciplined analysis to forecast consumer behavior
Marketing – The process of communicating with the end user using multiple touch points
Distribution – The process of reaching and amortizing your end users
Sales Team – The foot soldiers on the ground carrying the airline’s good word out ( evangelize )
The five principal’s of Commercial work together in unison to deliver the airline’s revenue goals.
Final Word
The devil is always in the detail. ‘ Cash is your oxygen ‘. The key to success is Discipline, Consistency & Playing the Gaps.
Disclaimer : This is only a short note from a Commercial View point and by no means complete. Feel free to add….
