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Airnguru: Changing the Dynamics of Airline Pricing?

Airnguru: Changing the Dynamics of Airline Pricing?

As you probably know, we had the opportunity to talk with Airnguru Executives on May 18, 2017, the Terrapinn’s Aviation Festival Americas 2017 in Miami, Florida.
Dr. Sergio Mendoza and Javier Jimenez, respectively CEO and Chief Commercial of Airnguru teamed up to tackle an essential challenge, which airlines face in their day-to-day operations.

What is Airnguru?

First Airnguru is the name of the Santiago, Chile-based company that Sergio Mendoza, Javier Jimenez and Daniel Pizarro founded in 2015, to produce and market their data-driven airline pricing solution.
The two business partners spent several years as co-workers at a large Latin American carrier. They ended up joining forces to solve the issue of inefficient airline
pricing.

Secondly, Airnguru is the name of the cloud-based technology, which Mendoza and Jimenez have produced to assist airline pricing and revenue management analysts. The solution relieves analysts from the manual processing of airline fare structures. Airnguru is a Software as a Service (SaaS).

What Makes Airnguru Unique?

As critical observers, Sergio Mendoza and Javier Jimenez recognized the fact that the airline industry needs an innovative solution to achieve two specific goals.
Firstly, the automation of revenue management and pricing models can ensure real-time response to the constant change of market conditions.
Secondly, the real-time gathering and analysis of competitive data can help discover revenue optimization opportunities. Otherwise, the heavy amount of unprocessed data usually hides these money-making occasions.
Plainly said, airlines would benefit from an automated, data-driven, intelligence technology like Airnguru. That can enable their pricing and revenue management teams to achieve those two objectives. This is like resorting to a “virtual Guru” to kill the proverbial two birds with one stone.

How Successful Is Airnguru in the Marketplace?

The start-up company Executives were able to secure a notable contract with Latin America’s second-largest airline, Avianca early this year. And the Santiago-based company was already implementing their solution at Avianca.
At the time of our interview with Sergio Mendoza and Javier Jimenez, it was too early to establish the concrete benefits of their software. However, one thing was clear. And that is the fact that the airline professionals behind Airnguru have pertinently identified and tackled a serious problem, which is prevalent in commercial aviation. And that pertains to airlines inability to generate enough revenues to sufficiently cover their operating costs. Someone might be tempted to downplay that fact by pointing to the recent record profits reported over the past three years. However, one must keep in mind that those so-called extraordinary airline profits were, in reality, huge savings on fuel budget. The financial results for the first quarter of 2017 are available to substantiate that statement.

If you like this profile summary, you may also like the full executive interview with Sergio Mendoza and Javier Jimenez.

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Kofi Sonokpon

Kofi Sonokpon

Managing Editor of Airline Profits, the first aviation magazine devoted to improving airline effectiveness and profitability, Kofi Sonokpon has more than 20 years of international experience in aviation. Kofi holds an IATA sponsored Master of Business Administration (MBA) in Air Transport Management from the John Molson School of Business at Concordia University in Montreal. Kofi Sonokpon is also an author and speaker on the topics of leadership, effectiveness, and profitability.