“The aviation landscape is littered with the carcasses of all- business airlines. Who now remembers Silverjet, Eos and Maxjet?”
remembers Silverjet, Eos and Maxjet? Strick- land says to make a success of all-business you need to be a big carrier with a lot of muscle. “Business travellers need back-up. It’s about being confident that you are going to be delivered in comfort to where you need to be when you are expected to be there.” Another burgeoning aviation business
model is long-haul low-cost. Norwegian, for example, has built a growing network of destinations from Gatwick. It serves destina- tions such as New York, San Francisco, LA, Las Vegas and Boston using a pay-for-your- frills service on the Boeing 787. In the last ten years, the number of des- tinations Norwegian flies to has grown to over 130, the number of passengers from 3.3 million to 25.8 million, and profits from 28
million krone (£2.8 million) to 246 million krone (£24.4 million). However, it is worth noting that the airline’s long-haul operations only began in 2013 with UK services launch- ing in 2014. In 2014, the airline made a loss of 1,070 million krone (£106 million). “It is very early days for Norwegian’s long-haul services,” says Strickland. “Whether they are able to roll out it widely remains to be seen. There are far more challenges about rolling out low-cost services long-haul than in short- haul where it is easier to differentiate.”
DARING TO BE DIFFERENT Sometimes a new entrant comes along with a refreshingly different idea of how to make money. America’s One Jet launched last year with a focus on cities in the US with no
direct, scheduled service between them. Based at Pittsburgh International, the airline launched with a business model that turned the accepted idea of revenue management on its head: as more people book, the fare goes down. The key to it all was that if no-one booked then the plane, a Hawker 400 busi- ness jet, did not fly. The first person to book, the person who needed to get somewhere at a specific time, paid the most. Unlike other on-demand services, such as chartering a private jet, One Jet’s schedule was available in the global distribution system (GDS) and bookable through online booking tools. However, the reverse pricing model hasn’t
quite worked as expected, and the airline has now pivoted to a new way of operating: flying small business jets on business routes
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