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Building a Successful Long Haul Low Cost Business Strategy

Building a Successful Long Haul Low Cost Business Strategy

René Armas Maes, Managing Director of Jet Link International Speaking at Aviation Festival Americas 2017 in Miami, Florida

Miami, Florida –  At the Aviation Festival Americas 2017 event held in Miami from May 8th to 10th, international consultant Mr. René Armas Maes lead a Low Long Haul Low Cost (LHLC) round table discussion focusing on building a sound business strategy that aligns revenue, cost, aircraft selection/seat configuration and route network for long term sustainability. A number of highly qualified airline executives joined René in this sought-after topic and round table discussion. Nowadays, LHLC operations continue expanding globally with more than 18 carriers operating under said high seat density and niche model and many others will be launched this year and in 2018.

“LHLC services require a high seat density configuration, large capital investments and are expensive to operate. In order to maximize profitability it is key to stimulate demand using a multi bucket fare strategy that optimizes load factors while containing revenue leakage in order to protect unit revenues. In addition, a sound and aggressively pushed ancillary revenue strategy at multiple trip touch points must be carefully executed to optimize cabin yields. Moreover, product unbundling and crafting a bundled fare strategy plus applying other incremental revenue techniques leads to better total revenue generation”, said René Armas Maes, Managing Director at Jet Link International LLC.

As LHLC carriers are faced with a number of challenges and disadvantages when compared to large network carriers including limited feeder traffic and highly seasonal leisure travel demand, it is strategic to hand pick dense long haul routes. “There are very few purely dense leisure point-to-point Origin & Destination markets. Therefore, feeder traffic at both ends of a route is needed in order to optimize load factors and revenues. Furthermore, maintaining high load factors with the least revenue leakage possible especially during off peak months (autumn and winter) might be impossible without feeder traffic”, continued René Armas Maes.

For more information, please contact René at +1 (51) 984-797-050 and/or through his LinkedIn page.

About Aviation Festival Americas

For over a decade, Terapinn – Event organizer – has been the leader in bringing together CEOs and CXOs from global low cost, legacy and long haul low cost carriers including Norwegian Air, Spirit Airlines, WestJet, American Airlines, Delta Airlines, Air Canada, LATAM Airlines and Air Asia X to name a few. At the event, more than 85 live presentations and workshops will be delivered focusing on a number of strategic topics such as Aviation Strategy, Aviation Interiors, Air Xperience, Aviation Marketing, and Aviation IT. The event is held on May 9th – 10th at the Hilton Miami Downtown, Miami, FL.

 

About René Armas Maes

He began his international career as a Senior Analyst at Simat, Helliesen & Eichner based in New York City where he consulted global airline, regional aviation and corporate aviation customers. René is a commercial and international consultant with 15 years of experience in revenue and EBITDA growth, new product development, cost containment, strategic planning and business restructuring. He has participated in a number of global Low Cost Carrier feasibility and review studies in Europe, Asia-Pacific and Latin America. Through his professional career, he brings a key focus on transforming businesses, expanding profitability, optimizing day-to-day operations and returns. René is an IATA instructor and is a regular contributor to a number of Canadian, US and Latin Aviation Magazines concerning ancillary revenues, business restructuring and strategic planning.

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