Service Launch - Cruising to Profits® methodology assists airlines in business transformation towards enhanced profitability and customer satisfaction
MONTREAL, May 7, 2014 /CNW Telbec/ - Millennium Aviation, Inc. has launched its new service line of business using its Cruising to Profits® method. The method is a step-by-step process supported by practical techniques and metrics, guiding airline managers in obtaining deep insights into the workings of their business models, in identifying profit or revenue leakage, and in putting in place corrective action.
"We have found that many established airlines have overall business models that comprise inner sub-models that are operating at cross-purposes, resulting in direct profit leakage," says Ricardo Pilon, CEO of Millennium Aviation, Inc. and author of the strategic airline management book "Cruising to Profits - Transformational Strategies for Sustained Airline Profitability."
In addition, "After their initial advent and popularity, the low-cost airlines are presently facing imminent saturation points in their business-model life cycles. Our detailed analysis shows that many of the new initiatives they are launching create business-model conflicts. This explains why some airlines are successful with specific ancillary revenues or merchandising projects, and others are not," says Mr. Pilon.
In order for the industry to embrace "Commercial Aviation 3.0," business transformation needs to become a key capability, and that assumes specific skill sets.
Mr. Pilon continues: "Commercial Aviation 3.0 is the third evolutionary era in the airline business. It will focus on monetizing the entire customer experience path, even beyond air travel, travel-related ancillary services (car rental, taxi, cruise, insurance), and current merchandising techniques (co-branded products and travel-related service bundles such as upgrades). Commercial Aviation 3.0 is an integration model that embraces technology, and its personalization is driven by customers' input.
"The Cruising to Profits ® Business Transformation service involves a process that allows airlines to obtain deep insights into the workings of the 9 building blocks of their business models and guides them towards the reconstruction of an aligned business model that can offer and deliver a commercially viable value proposition to its customers. The method consists of 7 phases involving 10 steps. It also relies on a deep hybrid analysis of a company's 9 business model building blocks, and the use of 5 business model patterns as a profitability revival technique. The process is supported by the application of practical tools and metrics, as well as by self-assessments, in order to customize the process to the unique DNA of the respective airline.
"We have studied the field for 17 years and we have based our method on 11 years of practical work and on a review of 685 transformation projects. Also, we have explored models from outside the airline industry such as Skype, Google, LEGO, which display unique patterns that can be arranged into business-model building blocks. However, of key importance is the tailor-made delivery of our toolbox around the unique DNA of each company, and the focus on execution and people, says Ricardo Pilon."
He continues: "Business transformation is perhaps a buzzword, but there is no better way to describe our service than a transformational toolbox. However, we do recommend that airlines tackle transformation in (departmental) increments, starting with the immediate attention areas that will have been identified in the first phase. We are a resource to airline senior management, and we can help jumpstart such projects."
Millennium Aviation, Inc. will release its next book on the Cruising to Profits® Business Transformation method in late 2014. The introductory book "Cruising to Profits - Transformational Strategies for Sustained Airline Profitability" is available online through Amazon, Barnes & Noble, and major book stores. The book can also be purchased through http://www.cruising2profits.com or http://www.millavia.com.
Millennium Aviation, Inc. is a boutique management, business consulting & professional services firm specialized in business transformation, profitability enhancement, and business-model revival in commercial aviation. The firm is based in Montreal, Canada, and offers world-wide service with a team of Senior Associates and three strategic partners. We enable our customers to rebuild or reinvent successful and profitable business models and to enhance their profitability in the short, medium, and long term.
The professional services of Millennium Aviation enable commercial optimization through four lines of business, Value Creation Facilitation, Tools & Techniques, Coaching & Advisory, and Speaking Engagements. We also offer a Free Educational Program, and we are active in multiple executive MBA and continuous education programs at reputable business schools around the world such as McGill University and Concordia University in Montreal.
Millennium Aviation actively promotes aviation and the communities it connects.
Image with caption: "Millennium Aviation, Inc. (CNW Group/Millennium Aviation, Inc.)". Image available at: http://photos.newswire.ca/images/download/20140507_C6879_PHOTO_EN_40011.jpg
SOURCE: Millennium Aviation, Inc.