An example of how a leading Latin American Carrier improved its revenues through a commercial change management program 1. 2. 3.
Worked with promotions Opened economic classes Unsold group blocks released AM YOY Change in RASK
30%
MEXVSA
MEXVER
MEXTIJ
MEXPVR
MEXMTY
MEXMID
MEXMIA
LAXMEX
HMOMEX
GDLTIJ
GDLMEX
BJXLAX
0%
ACAMEX
10%
GDLLAX
20%
CUNMEX
% Change, 2002 to 2003
1. Kept fare differential with competitors 2.Fine tuned pax mix
Q1 Q2 Q3
-10%
Excellent results
-20%
Improvement of revenue during project
-30% Market
Syste m Tota l Flights Tota l Passe ngers Tota l Capacity Loa d Fa ctor Tota l Reve nue RASK Ave rage Fa re
Managed ManagedFlights’ Flights’LF LF should be approx. 90% should be approx. 90% Low Yield Spill High Yield Spill Overb ook ing Levels Low Overb ook ing Levels High
Posted PostedFlights’ Flights’ LF LF should shouldbe be approx. approx.95% 95%
Ma na ge d Flights Ma na ge d Flight - % of TTL Ma na ge d Flights' LF Poste d Flights Poste d Flights - % of TTL Poste d Flights' LF De nied Boa rdings DBs per 1000 pa x Ma na ge d/Posted Flights
2226 171434 272927 62.8%
2174 163862 264816 61.9%
2140 170296 261146 65.2%
2129 165571 260323 63.6%
2155 157237 263648 59.6%
2144 155198 262129 59.2%
2109 158447 257723 61.5%
Significant knowledge development Adopt PRM policies and procedures Adopt performance measures Excellent teamwork with sales
441 19.8% 82.5% 91 4.1% 91.5% 283 1.65 4.8
395 18.2% 82.3% 73 3.4% 94.3% 165 1.01 5.4
406 19.0% 82.4% 68 3.2% 92.1% 242 1.42 6.0
352 16.5% 82.8% 62 2.9% 95.9% 155 0.94 5.7
320 14.8% 79.0% 39 1.8% 91.0% 108 0.69 8.2
369 17.2% 78.7% 50 2.3% 91.7% 130 0.84 7.4
418 19.8% 78.7% 57 2.7% 89.2% 195 1.23 7.3
Effective use of RM tool