Project 01: BUY-SIDE EVALUATION
Three Aviado team members worked with a global transportation group to analyze the revenue improvement potential at a multi-billion dollar buy-out target. Analyzing the target to understand the commercial performance to date led to identifying areas of underperformance in revenue, yields, and product offerings.
The team delivered an in-depth analysis of the existing business working primarily with market data and select information provided by the target. Although the target appeared to be a best in class performer, the team modelled the business and uncovered significant underperformance. The modelling identified the causes for underperformance allowing a determination of the potential for growth.
• Identifying opportunities for new products
• identifying opportunities to improve passenger loyalty
• Developing a comprehensive strategy
• Developing a roadmap for improving pricing and revenue management
Spotlight on Aviado Partners' M&A capabilities
Airline Restructuring & Turnaround
Aviado Partners' Managing Director oversaw the restructuring of this State-Owned airline in the Caribbean operating a mix of turboprop and Boeing 737 aircraft on intra-regional and regional flights.
The mandate was to support the board with the implementation of over 120 action plans to improve the bottom line performance. The project team developed a short-term operational and commercial restructuring programme, and the long term strategic plan to turnaround the airline.
• Losses reduced by over 60% in 14 months
• Cost performance improved through
contract renegotiations, operations
improvements and the implementation of a
new reservation system; exceeding target
by 50%, excl. fuel effect
• 17% increase in revenue made through
network and fleet optimisation, improving
the product, pricing, service delivery and
• A la carte pricing provided opportunities
for further revenue growth
Partner & Alliance Analysis
Three Aviado Partners team members worked with this national flag carrier in Europe to conduct an analysis of current and potential partners.
This analysis involved the following:
• A review of current codeshares and
special prorate agreements
• Forecast of revenue potential from current
• Analysis and forecast of potential revenue
gains from codeshares and SPAs with a
range of over 30 airlines and combinations
• Modelling alliance potential from partnering
with a group of airlines
Results for this assignment are confidential given the very specific commercial value of this type of work. However, in general, the team identified the following:
• Codeshares not providing forecast
• Airlines with which to pursue new
codeshares and SPAs
• Strategy for global alliance involvement
Revenue Management Strategy
Two Aviado Partners team members worked with one of the world's largest transportation groups to assess their skills, processes, approaches and processes in Pricing and Revenue Management. This included a review of the price elasticity of the customer base and identifying the preferred approach between price- and product-sensitive RM.
The team delivered the following:
• an assessment of current competence
• a strategy for pricing and revenue management
• a gap analysis
• a roadmap for the implementation of an industry benchmark revenue management approach
The project identified areas for improvement in pricing structures, pricing policy, revenue management systems, revenue management policy, skills and organisation
As an additional benefit, the team identified opportunities or improving revenue through the implementation of an improved product strategy