We provide below just a few examples of the more complex business transformation projects our people have been involved in.

 

Our examples below

  • Airline restructuring and turnaround
  • Airline merger integration
  • Planning a carve-out and separation of business units

Case Study: Airline Restructuring & Turnaround

Client: Regional airline ca. 25 aircraft

Task: Take corrective action to reverse a 30% operating loss

Timeframe: 6-12 months

Key data

  • Immediate crisis management to stabilise the airline
  • Interim executive management led the business through the high season
  • Cost reduction programme
  • Commercial improvement programme including revised network and schedule
  • Fleet replacement program to lower operating costs

Results

  • 7% reduction in cash burn rate within 90 days
  • 13% increase in network profit from network and fleet optimisation
  • 23% improvement due to improvements in revenue management and pricing
  • On-time performance increased 19%

Case Study: Merger Integration & Performance Improvement

Client: Investment Holding Company

Task: Merge two recently acquired airlines with existing aviation assets to create a strong regional competitor

Timeframe: 8 months

Key data

  • Airline A: Primarily a scheduled carrier with significant losses
  • Airline B: Primarily a charter carrier with break-even results
  • Other assets: MRO, Ground handling, Catering, small fleet of turboprops
  • Three-phase approach: Stabilisation, integration, improvement

Results

  • Crisis management to stabilise operations and cash flow
  • Integration planning to align business operations
  • Commonisation of global commercial processes (sales/distribution, new IBE)
  • Rationalisation and consolidation of network, fleet, schedule & operations support
  • 20%+ improvement in profitability
  • 10%+ cost synergies from catering, crewing, maintenance, ground handling
  • Long term strategic plan developed for rebranding, network growth, fleet replacement, enhancement of product, alliance entry

Case Study: Carve-Out & Separation Planning

Client: Top 50 airline ca. 90 aircraft

Task: Develop strategy for separation of business units

Timeframe: 12-24 months

Key data

  • Long haul and regional scheduled and charter carrier with long haul Freightors
  • Multiple business models

Results

  • Translation of the business strategy into an implementable transition plan
  • Developed a comprehensive two-year programme plan for the carve-outs and separation of the units into standalone businesses
  • Established a management coaching structure for the transition