The Airlines

The Airlines

by Jean-Louis Baroux


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The Airlines by Jean-Louis Baroux

For more than thirty years, air transport has made great progress in terms of security and safety. Every year new systems and innovations save about $2 billion, and yet every year the industry loses about $5 billion in a market that grows at an average of 5 percent per year. Something is clearly wrong. Jean-Louis Baroux has been working in the airline industry for more than forty years. In this book, he presents a global vision for air transport and examines why only low-cost airlines are profitable. As for the rest, Baroux argues that they have lost touch with their clients and passengers, which is one of the main reasons why they have become unprofitable. He analyses the way air transport is managed and provides much-needed ideas and suggestions to make the industry profitable again.

Product Details

ISBN-13: 9781907794421
Publisher: LID Publishing USA
Publication date: 10/23/2013
Pages: 224
Product dimensions: 6.30(w) x 9.20(h) x 1.00(d)

About the Author

Jean-Louis Baroux is the founder and chairman of APG Global Associates, the first global network of business services for the airlines.

Table of Contents

Introduction 11

How to sell paint the way air travel is sold 15

1 The Dance of the Labels

Doing away with overbooking 22

The first attempts at "yield management" 22

Yield management 23

The madness of fare categories 25

Surcharges 28

Consequences as far as the public are concerned 34

2 Frequent Flyer Programmes, a Very Cumbersome Millstone

How it works 37

An example: the "Flying Blue" programme 38

Why has it turned out like that? 40

The truth behind the FFP 41

Benefits that are not taxed… but for how long? 43

3 The "Code Shares" Fraud

How to sell what you haven't got 47

Global distribution systems: a combat tool for winning and retaining markets 51

What happens when something goes wrong? 55

Where does the system stop? 56

4 The Big Business of Security

Security or safety 61

The safety religion 62

Fluctuating procedures 63

Who pays, and how much 65

Can't we improve anything? 66

Security - the future 67

Caution carried to excess 68

5 Managing the "Slots" or How to Control the Big Airports

Why do we have slots? 73

An effective means of controlling the competition 74

The Orly case 75

Little tricks used to manage the positions which have been occupied 77

What, exactly, is a slot worth? 78

6 An Under-Exploited and Disorganized Air Space

The fragmentation of European air space 83

Low performance routes 85

State jealousy 85

7 Nurturing the Corporate Spirit

The air traffic controllers 89

The Pilots' Union 91

And all those other tiny benefits 93

8 How to Become a Giant

The hubs 97

Alliances 101

Concentration, or the Sumo Airlines syndrome 106

Synergies and constraints 108

9 The Extreme Poverty of the Airports

The Roissy/Charles-de-Gaulle nightmare 115

The cost of a monopoly 122

Is competition actually possible? 123

How to make air transport develop sensibly 125

10 The 'No-Frills' Companies Have Dictated their Law to the Big Airlines

Quite a simple idea, but hard to get to work 129

The appearance of the "no-frills' airlines in Europe 130

The remorseless rise of easyJet 131

European ambitions 133

Fare variability 134

And all those little additions to the stated fare 136

And all the other new carriers 137

The low limit on services 138

Lots of new companies and very little real success 140

Copying downward 141

The low-cost model has won 142

11 Losing the Relationship With the Customer

The internet and its consequences 147

The delocalized call centres 149

Contempt for the distribution circuit and the sad consequences 150

It's somebody else's fault 153

So you have a problem? Write to us 155

12 The Sad Case of the In-Flight Services

The importance of in-flight services 159

A slippage that didn't just start today 160

Seizure by the management 161

The attitude of the air crew 163

The enormous difference between the companies 164

Cabin outfitting is not everything 166

13 The Pleasure of Flying… Just Flying Away

The stress begins with the first contact with the airline 171

Throughout the trip to the airport, anxiety is never far away 173

How to relax in the atmosphere of an airport 174

Where's the customer care? 177

How the bosses travel 178

14 Deadlock

Crumbling quality is affecting the vital parts of the traditional airlines 181

The trap of the income from derivatives 182

How to cure bad habits 183

15 And Yet Air Transport Still has Good Times Coming

It has very little to do with the customers 189

Cheaper than surface transportation 190

Whole continents are waiting to be equipped 191

A great deal of progress is still necessary 192

16 A Dud Management

Politics can do considerable damage 197

And there are too many amateurs 198

The single thought 199

Organizing irresponsibility 201

17 What is a Good Product?

Adaptation to the fare 207

The luxury product 209

The business product 211

The bottom-of-the-range product 215

18 Retrieving the Fundamentals

Value for money 219

A customer is not a "pax" 220

Rediscovering an economy based on transport and not supplementary products 222

Finding valuable actors 223

A sort of conclusion 227

Annexe 1 232

Annexe 2 233

About the Author 235

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