Airline Business Growth Choices
As air travel expands, airlines must decide how to evolve. Options include increasing capacity or frequencies/nonstop routes. Passenger preference leans towards more frequencies and nonstop routes. The industry also faces challenges such as privatization, deregulation, globalization, and heightened competition, leading to trends like low-cost carriers, strategic alliances, and more. This dynamic environment demands higher service quality, extensive networks, and competitive pricing to meet growing air travel demand.
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Presentation Transcript
Hazrlayan Moderator: Assoc. Prof. Dr. Ender GEREDE Anadolu University Faculty of Aeronautics and Astronautics
Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 2
Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 3
Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 4
Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 5
Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 6 As air travel continues to grow, airlines have a choice about how they want to grow their business. How to accommodate the growth? Increasing airplane capacity and/or size or adding more frequencies and nonstop markets to networks. Which one do passengers prefer? Increasing frequency and new nonstop markets.
Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 7
Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 8
Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 9 Privatization of airlines, deregulation, bilateral and multilateral liberalization of the markets, open sky agreements, Globalization, more airlines in the market and higher competition, More complex and dynamic industry: Higher uncertainty in the business environment. Higher service quality, bigger and wider networks, lower ticket prices Higher air travel demand Trends in airline business : LCCs, airlines within airlines, strategic alliances, outsorcing, virtual airlines, aviation business airlines
Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 10 As the LCC business model continues to grow, more point-to-point flying is occurring. In 1994, LCCs provided less than 10 percent of all short-haul flights (less than 3,000 miles), the majority of which Southwest flew. Today, LCCs fly almost 30 percent of short-haul flights. There are regions of the world such as Europe, Southeast Asia, and North America where this trend is more common. Source: Boeing
Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 11 The low-cost business model continues to drive growth in short to medium haul markets. Passengers have access to a wider range of destinations and the benefit of the speed and convenience that flying offers over traditional modes of transportation. Source: Boeing
Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 12 Based on what has happened historically and what is expected to occur, world GDP is anticipated to grow at 3.1 percent annually over the next 20 years. During the same period, passenger traffic is forecast to grow by 4.9 percent and air cargo traffic by 4.7 percent. Source: Boeing
13 He graduated in Economics at the Federal University of Minas Gerais (Belo Horizonte / Brazil) and Master in Development Studies (Regional Development and Planning) at the Institute of Social Studies (The Hague / Netherlands). After an extensive career in the public sector in Brazil, including seven years as Vice-Minister of Tourism and Vice-Minister of Institutional Relations of the Presidency, in 2010 joined the World Tourism Organization (UNWTO) in Madrid, Spain, as an Executive- Director, now in charge of the Operational Programmes and Institutional Relations of the Organization.
14 Levent Konukcu has been working at Turkish Airlines for 12 years. After holding different positions, 4 years ago he was promoted to be the Senior Vice President of Investment Management. He is responsible for managing the investment decisions of all aircraft and aircraft related equipment and parts such as all types of engine, simulator, aircraft interior parts, etc. He is also responsible for preparing the long term strategic plans and fleet plans of the company. Accordingly, he coordinates all types of aircraft acquisitions contracts. He supervises the department preparing business intelligence reports analyzing all major KPIs supporting the decisions of the company executives and managers. He graduated from Aeronautical Engineering Department of Istanbul Technical University.
Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 15 Assoc. Prof. Dr. Ender GEREDE Anadolu University Faculty of Aeronautics and Astronautics http://www.anadolu.edu.tr/en egerede@anadolu.edu.tr http://www.linkedin.com/pub/ender-gerede/36/a22/a0b Postal Address: Anadolu Universitesi, Havac l k ve Uzay Bilimleri Fakultesi, Ikieylul Kampusu, 26470 Eskisehir / Turkey
