InterAir's New Strategy
REPORT
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INTERAIR’S NEW STRATEGY
INTRODUCTION:
InterAir is a Canadian airline led by Jacques Rousseau. For some time, the company loses its business clientele. Indeed, the company received many negative opinions. Therefore, she knows why his business class is declining. A lack of custom services, too noisy aircraft, seats are too small but also because a competitor coming to cause trouble, the train that offers a real business class. The last campaign ad in 2010 hasn’t worked, so, his manager team seeks again to regain this clientele and maximize its profit on the Toronto-Montreal route.
In 2010, InterAir allocated 30% of the 120 seats in the business class for a fare of $ 130 compared to 20% in 2011 for the same price. Formerly configured with 2 types of fares, 2011 strategy was to offer 4 rates broken down with the business class, the economy class, the advance economy class and the standby one way which offered very interesting prices for last minutes bookings. However, this strategy hasn’t worked. Despite a strong increase of low factors, profits were reduced because the low prices were too many. On the other hand, aircraft were configured in the same way all the time. There was no distinction according on the time and day.
To propose a new strategy, we will first understand past statistics based on the graphs and texts that are available for the years 2010 and 2011. Then, we will see the differences between the two strategies and what hasn’t worked. And then, I would suggest specific ideas and calculations to define the strategy of 2012.
I] FINDINGS:
1.1. GRAPH 1:
Thanks to this graph we notice that in 2011, on the 3500 business trips do every day between Montreal and Toronto, the passengers were 10% to use the aircraft against 15% in 2010, 30% have borrowed the train while they were only 20% in 2010, 60% have used their car or a rental car against 65% the previous year. There was a drop of 5 points of air transport as well as road
-
INTERAIR’S NEW STRATEGY
INTRODUCTION:
InterAir is a Canadian airline led by Jacques Rousseau. For some time, the company loses its business clientele. Indeed, the company received many negative opinions. Therefore, she knows why his business class is declining. A lack of custom services, too noisy aircraft, seats are too small but also because a competitor coming to cause trouble, the train that offers a real business class. The last campaign ad in 2010 hasn’t worked, so, his manager team seeks again to regain this clientele and maximize its profit on the Toronto-Montreal route.
In 2010, InterAir allocated 30% of the 120 seats in the business class for a fare of $ 130 compared to 20% in 2011 for the same price. Formerly configured with 2 types of fares, 2011 strategy was to offer 4 rates broken down with the business class, the economy class, the advance economy class and the standby one way which offered very interesting prices for last minutes bookings. However, this strategy hasn’t worked. Despite a strong increase of low factors, profits were reduced because the low prices were too many. On the other hand, aircraft were configured in the same way all the time. There was no distinction according on the time and day.
To propose a new strategy, we will first understand past statistics based on the graphs and texts that are available for the years 2010 and 2011. Then, we will see the differences between the two strategies and what hasn’t worked. And then, I would suggest specific ideas and calculations to define the strategy of 2012.
I] FINDINGS:
1.1. GRAPH 1:
Thanks to this graph we notice that in 2011, on the 3500 business trips do every day between Montreal and Toronto, the passengers were 10% to use the aircraft against 15% in 2010, 30% have borrowed the train while they were only 20% in 2010, 60% have used their car or a rental car against 65% the previous year. There was a drop of 5 points of air transport as well as road