Financially sustainable airlines reasons for optimism icao mcgill conference september 26 2010
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Financially Sustainable Airlines Reasons for Optimism ICAO/McGill Conference September 26, 2010 PowerPoint PPT Presentation


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Financially Sustainable Airlines Reasons for Optimism ICAO/McGill Conference September 26, 2010. Donald P. Schenk President ACA Associates, Inc. 545 Fifth Ave, Ste 640 New York, NY 10017 +1-212-808-4420 [email protected] www.aca-assoc.com. About ACA.

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Financially Sustainable Airlines Reasons for Optimism ICAO/McGill Conference September 26, 2010

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Financially sustainable airlines reasons for optimism icao mcgill conference september 26 2010

Financially Sustainable AirlinesReasons for OptimismICAO/McGill ConferenceSeptember 26, 2010

Donald P. Schenk

President

ACA Associates, Inc.

545 Fifth Ave, Ste 640

New York, NY 10017

+1-212-808-4420 [email protected]

www.aca-assoc.com


About aca

About ACA

ACA is a consulting and financial advisory firm, founded in 1989, specializing in the commercial aviation industry including manufacturers, airlines, airports, after-market support, and ground service companies. ACA combines the expertise and talent of experienced aviation industry executives from a wide variety of disciplines with those of financial executives with a background in corporate finance. This enables them to deliver value-added strategic, financial, and operational analysis and advice to clients based on an understanding of the wide range of implications that a client's decisions can have on its overall business.


History of limited profits

History of Limited Profits

US Pre Deregulation 1960 – 1978

Net Income ~$ 5 billion

Margin 2.6%

Net Income $

Net Margin %

US Post Deregulation 1979 – 2009

Net Income ~ ($33) billion

Margin ~ 1.2%


Sustainable airlines

Sustainable Airlines

  • Identify your market

  • Recognize that the product is the brand

  • Use IT as a friend not an enemy

  • Create brand equity

  • Eliminate all unnecessary costs


Costs 1

Costs (1)


Costs 2

Costs (2)


Conclusions

Conclusions

Focus is Critical

  • Serve your unique customers

  • Let customers design product

  • Restrict services and costs

  • Use IT as a friend not an enemy

  • Measure success in profits not market size


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