1 / 18

Premium Business Airline Board Presentation 2006

Explore the business model, market share estimates, key performance indicators, fleet planning, and more. Discover the strategy to become the preferred airline in the premium business travel sector. Make data-driven decisions for profitability and growth.

kamali
Download Presentation

Premium Business Airline Board Presentation 2006

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Group 8Dickson CHAN / Michelle CHONG / Belle KWOK / Kevin LI / Jonathan WONG Board Presentation 2006

  2. Presentation Outline • Introduction • Business model (comparison with similar airlines) • Market Share Estimate • Key Performance Indicators (Profit / Loss) • Fleet Planning • Summary

  3. Introduction Organisational Structure

  4. Introduction Mission Statement • To become the preferred airline • in the premium business travel market sector • in Australia and the World • DeliveringSafe, efficient and reliable air services • Innovative and personalised customer care Our Objectives • Provide at least one daily frequency between our destinations • To achieve average load factor of 70% in our first year • To become profitable within our first year

  5. Introduction Product and Services • All Business Class cabin • 60 passengers

  6. Introduction Product and Services • 2-2 configuration • 61 inch seat pitch • 22.9” inner seat width

  7. Introduction Network / Frequencies London (STN) Frequencies Hong Kong (HKG) HKG/SYD: 8 per week HKG/MEL: 7 per week HKG/STN: 12 per week Sydney (SYD) Melbourne (MEL)

  8. Business Model Developing the business model… Privatair Service operated on behalf of Lufthansa, KLM and Swiss International EOS premium business/first class service Maxjet: low fare business class service

  9. Business Model We are different from Ozjet... • Domestic: Network and Frequency • Fuel-inefficient 1970s aircraft • High cost of maintenance • Lack of travel agent support • High break-even seat factor • International: Comfort • Fuel-efficient (newest generation of 737) • New airframe, low maintenance costs • Ticket distributions on GDS • Better break-even seat factor

  10. Market Share Estimate Routes Forecasted NS06 Total Business Class Passenger Traffic Melbourne/ Hong Kong Melbourne/ London Sydney/ Hong Kong Sydney/ London Hong Kong/ London 36,600 32,700 60,200 74,700 102,600 Frequency Share (70%) 25.0% 33.3% 16.3% 16.7% 16.0% Capacity Share (30%) 22.4% 21.3% 13.5% 13.3% 10.2% Total Market Share 24.2% 29.7% 15.5% 15.6% 14.3%

  11. Key Performance Indicators • Yield (per route) • Unit Cost (per route) • Breakeven • Actual Seat Factor • Utilisation • Profit / Loss

  12. Key Performance Indicators Melbourne/ Hong Kong Melbourne/ London Sydney/ Hong Kong Sydney/ London Hong Kong/ London System-wide (NS06) Available Seat Km (million ASKs) 199.9 109.7 252.3 172.3 105.3 839.5 Expected Revenue Passenger Km (million RPKs) 637.3 65.6 164.8 68.6 198.1 112 75.9% Passenger Seat Factor 62.3% 82.4% 62.5% 78.5% 65.0% Allocated Capacity (one-way seats/day) - ~30 ~25 ~35 ~35 ~40 66.9% 60.0% 76.0% 59.8% 76.0% 56.2% Breakeven Seat Factor 28.8 31.1 24.7 31.1 24.7 33.7 Yield (cents/RPK) 18.8 Unit Cost (cents/ASK) 18.6 18.8 18.6 18.8 18.9 Aircraft Utilisation (hours/day) 14.7

  13. Key Performance Indicators Profit / Loss - NS06 (1) Melbourne/ Hong Kong Melbourne/ London Sydney/ Hong Kong Sydney/ London Hong Kong/ London System-wide Passenger Flight Revenue (A$ million) 20.4 40.7 21.3 49 47.2 178.6 Operating Expenditure (A$ million) (19.6) (37.5) (20.4) (47.3) (32.6) (157.5) Profit/Loss before interest and tax (A$ million) 0.8 3.2 0.9 1.6 14.6 21.1

  14. Key Performance Indicators Profit / Loss – NS06 (2) Skyways British Airways Cathay Pacific Qantas Operating Ratio 113.4% 109.5% 108.9% 110.3% Gross Profit Margin 11.8% 6.9% 7.8% 8.9%

  15. Fleet Planning Mission Requirements Boeing BBJ2 Range With 7 auxiliary fuel tanks - 10,460km Mission Requirements Route Distance (km) Sydney / Hong Kong 7372 Melbourne / Hong Kong 7387 London Stansted / Hong Kong 9582 Future Mission Requirements Brisbane / Hong Kong 6930 Perth / Hong Kong 6007 Paris / Hong Kong 9607 Frankfurt / Hong Kong 9171 Boeing BBJ2 Range Capability Chart

  16. Fleet Planning (2008-2012) Forecast 2006 Annual ASKs PRODUCED ASK (000s) Melbourne / Hong Kong 322,664 Sydney / Hong Kong 368,010 Stansted / Hong Kong 717,500 Annual ASKs required ASK (000s) 2008 2009 2010 2011 2012 Melbourne / Hong Kong 334,494 372,728 415,115 461,726 512,629 Sydney / Hong Kong 368,010 368,694 399,412 434,921 475,218 Stansted / Hong Kong 759,780 803,751 850,718 900,737 953,864 Note: Cells highlighted in Yellow indicates that the current ASKs would not meet the ASK requirements of that year

  17. Fleet Planning Aircraft Evaluations • Boeing 767-200ER • 102 seats / 2-2-2 configuration (similar to Maxjet) • max range 12,223km • Capable of carrying FRT • 10 tonnes on SYD-HKG • 3.7 tonnes on STN-HKG Figure: Boeing 767 family Range Capability Chart

  18. Summary • Business model proven in the Trans-Atlantic market • Applying this model on our market, avoiding Ozjet’s mistakes • Profit of $21.1 million AUD (NS06, before interest and tax) • Operating Ratio: 113.4%, Gross Profit Margin at 11.8% • Breakeven SF (66.9%); PAX SF (75.9%) • Aircraft Utilisation: 14.7 hrs per day • Fleet Planning: Acquiring additional BBJ2s for new routes 2 x 767-200ERs for London to Hong Kong

More Related