is low cost private jet travel possible?

Jets

The current economic crisis has affected the volume of business class and private flights which have been partially redirected to the offers of low cost carriers.

This flow is related to the need of many companies to reduce costs, but does not mean that if the price is right, there is no demand for the service, especially when savings in the ticket price may be counterbalanced by the long hours company executives spend in boarding queues, check in desks, and waiting for delayed flights, missed connections, etc.

Some planned initiatives in Spain to offer private flights at a moderate cost have not proved feasible, mainly for not having the right aircraft. It seems that the Eclipse 500 model that had been chosen originally because of its advantage of operating at a cost of approximately €1,500 an hour, with capacity for four passengers, failed, when in 2009 the  European Aviation Safety Agency withdrew the certification that had been originally approved on 21st November 2008. EASA stated that the certification had been withdrawn due to “administrative as well as technical reasons.” These reasons were related to financial problems,  to the Eclipse’s outstanding obligations against EASA, and payment for certification services.

Other companies more…


Other post:

airlines and experience marketing

The desire to fly seems to be a constant human aspiration. Aviation has conquered the skies, but it is still possible for airborne experiences to be unforgettable beyond commercial flights.

These experiences are remembered, are etched on our memory for years, and this is the starting point for experience marketing strategies. If consumers associate a brand or product with a powerful experience, then a very special bond is created..

One initiative that is attracting interest is zero-gravity flights. If the selling point of  these flights is the feeling of being as light as a feather, then it is surely possible for this feeling to be associated with the many brands or products that incorporate this as part of their values. It is of particular interest for these flights to be used as rewards or gifts in communication campaigns.

[SWF]http://www.youtube.com/v/LP9OLX3l64I, 500, 404[/SWF]

They are also equally interesting as alternative entertainment and although they cost around $ 5,000, this seems to be no obstacle for those wishing to enjoy the feeling.

Among other companies, ZERO-G (zero gravity) offers the service more…


Other post:

glamour vs. pricing

Virgin

Flying in the lap of luxury seems to be becoming restricted to a lucky few.

In 2009 the IATA (the International Air Transport Association) stated that a large number of business passengers had chosen to switch to cheaper services, forgoing business class flights, often going for low cost airlines that in order to take advantage of this trend, have opted to attract and retain these new customers with specially developed products and services.

This change in habits has had very negative effects on the financial results of certain airlines. Business class is highly profitable for these companies and, according to IATA statistics, the income from premium tickets, a category comprising first and business class, fell by between 40 and 45% in May 2009 compared to the same month in 2008. This does not appear to be a cyclical downturn that is going to change in the near future. more…


Other post:

airlines against high speed trains

 These two means of transport can either work together or enter into strong competition.

Users’ decisions about which is the best choice on those routes where both services are available are based on four main variables: Cost of service: if the price difference is not too great then this will be the least important variable.

Journey time: airlines have the edge in this respect, although technological advances in high speed rail travel and the creation of routes with a minimum number of intermediate stops will reduce this difference.

Waiting time: this is the key to choice. Airlines have the advantage more…


Other post:

airlines and CO2 emissions

CO2Zero

Airlines are have their share of responsibility in the generation of negative impacts on the environment due to CO2 emissions into the atmosphere.

Some airlines have taken steps to lessen these impacts, however as yet they do not seem to be sufficient. The more efficient actions point to the need for more modern fleets, meaning reduced fuel consumption and therefore lower emissions, as well as searching for and using new, less contaminating fuels. Both measures require substantial investments for their implementation and although immediate benefits will be gained by the environment, businesses fear a high financial impact in their structures in the short term. more…


Other post:

managing communication in times of crisis

crisis

At certain times all organisations face critical moments, unexpected events with unforeseen consequences. These may affect the company itself as well as having potential knock-on effects on customers and stakeholders.

Both airlines as well as airports will have to face such situations fairly regularly, ranging  from delayed or cancelled flights to other more serious incidents.

Successful crisis resolution will find a solution to any problem that has occurred, but will also successfully manage communication. more…


Other post:

the importance of microsegments

microsegmentos

One basic premise of a good job of marketing is to not lose sight of who the customers are and of their needs and preferences. The performance of a good segmentation of the target can become a valuable technique towards the identification of interesting business opportunities.

Sometimes the identification of even minority interests may be enough for building a new product or service or even a new business. One case in hand is Pyrenair, an airline designed with skiers in mind.

With the objective of meeting the needs of this very specific group it is now in its third season flying to Huesca, linking the Aragonese Pyrenees with Valencia, La Coruña, Palma de Mallorca, Madrid and via Barajas, the Canary Islands.

The initiative was the brainchild of two keen skiers who are well aware of the requirements of their target group. more…


Other post:

inflight advertising

 EmiratesAdvertising

Inflight advertising is not a new concept. Personalised spaces or objects such as headrests,  trays as well as magazines and audiovisual messages have all been used for advertising purposes.
 
This additional source of revenue for airlines may mean lower prices for other items and for advertisers it can represent an ideal opportunity to reach a highly receptive audience that is literally captive.

Here are some statistics:

QMedia
 
85% of long-distance travellers recalled some type of inflight advertising or promotional material. The figures were higher for business class and high frequency passengers.
 
86% of customers are flying in a positive mood, and are hence more likely to be receptive to advertising messages.

Triad Consulting Group

On flights of over an hour, 9 out of 10 airline passengers used their tray for 15 minutes or more. In short flights of an hour or less, the figure stood at 82%

92% of airline passengers were still able to recall advertising messages a few hours after arrival.

This would seem to be an appealing way of getting to potential customers but only insofar as it responds to the right strategy. more…


Other post:

code sharing as a competitive weapon

Code sharing refers to practice where a flight operated by an airline is jointly marketed as a flight for one or more other airlines. The main objective pursued with this is to increase the number of destinations available to customers without having to physically fly to them or the need for large investments.

Improvements in distribution are important because regular customers may sometimes require to fly to other destinations than those offered by the airline in question. Code sharing  partnerships mean that this customer service becomes available, entailing at the same time a business opportunity.

The seat-booking systems of the airlines wishing to participate should be prepared for code sharing.

Usually two roles are delimited between the companies:
Operating Airline
Marketing Airline.

The operating airline sells its own operating routes, while the marketing company receives a commission related to the distribution expenses incurred by the company in selling the seats.

The most common modalities of agreement:

Free sale

There is free availability of seating for both companies and the marketing airline is set no sales limits. Revenue goes to the operating company, which pays a commission to the  marketing company.

Block space

In which both airlines share the plane with an assigned number of seats to be sold by each company.

In this way each airline receives revenue from the sale of the seats. This modality can be carried out in two different ways:

Hard block, in which each airline is responsible for handling their own seats

Soft block, which allows the marketing airline to return any unsold seats.

As in any strategic alliance, the outcome will be favourable if more…


Other post:

a wi-fi christmas gift at airports

arbol

It has become increasingly more difficult to do without an internet connection, both professionally and personally. It is for this reason that the possibility of wi-fi connections in airports and airlines is such an appealing proposal.

Google has made the wishes of many Internet users come true in the form of a Christmas gift. This is certainly going to have a major impact at a time of the year when many people are travelling and air traffic is intense. Free wi-fi will be made available at 47 U.S. airports up to the 15th  January.

This scheme also has its share of seasonal goodwill. When travellers connect to the network at any of the airports participating in more…


Other post:

next page »