Airline Business Models

[redbull7]

Hi All,

I have just found out that I have got an interview coming up with a certain airline and have been told that I must find out what there business model is... Does anyone have any idea what this actually means?

Thanks

[Capetonian]

It's consultant speak for, in very simple terms, what segments of the market (e.g. business, leisure, holiday charters, tour operations, business jet) they identify as their main revenue stream(s), the type of traffic they pick up (domestic, short haul, long haul, intercontinental, connecting, etc). Do they own or lease aircraft, do they wet or dry lease, do they operate with their own crews or contract out, etc.

For example, if you were to compare Ryanair with Lufthansa, you would be able to immediately identify some key differences.

If you would like to PM me with some specific questions I may be able to help you further.

(I could be wrong but your location might indicate who the airline is!)

Edit : If you have time and need to go into this in more depth, I can recommend two books by Rigas Doganis, 'The Airline Business', and 'Flying Off Course'.

[ReverseFlight]

To add to what Cape said, it boils down to 2 very simple questions:

1. Where does the airline spend its money (where does every penny go) ?

2. How does the airline earn this money ?

If you have a good idea of the answers to these, you will have built up a pretty close business model for it. Maybe a copy of its latest financial report will tell you even more.

Good luck with the interview.

[SW1]

Judging by previous posts, the guy has not even started training yet. If the FTO you are going for is going to ask you about "Partner Airlines" then wikipedia is sufficient enough. Alternatively, Get a Head for the Sky is a pretty good book to use for FTO interviews/assessments. Good luck