Regional airline of Flanders, operating a point-to-point network with mainly high frequency routes from the European continent to London City Airport, using Fokker 50 aircraft.
In one of Europe’s most competed environments, VLM created
its own niche. It was one of the first airlines being successful in bypassing hubs for smaller
However, the number of markets that support this model is limited.
In order to grow, new opportunities needed to be found. VLM found that it had difficulty
translating its business model into thinner routes served with lower frequency.
Schedule Consult was invited to provide a second opinion on its efforts to develop new routes out of Rotterdam and Antwerp.
SECOND OPINION ON NEW ROUTE DEVELOPMENTS
Project Objective: Define which management decision would be best to deal with the losses on two loss-making new routes.
Project Content: Thorough analysis of the competitive situation in the markets involved and critical profitability factors. Evaluation of several alternative options, including possible adjustments in the business model. Sensitivity analysis on risk factors.
Result: Option to significantly improve results for the routes concerned. Clear mapping of risks compared to the base option of abandoning the routes. This prepared management to conclude that the time was not ripe to compromise on the business model.
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