Market conditions had worsened. Local market preferences were changing and there were powerful restrictions abroad. The company had to find a new direction and define a new strategic plan.
Context
A local lowcost airline was facing the perfect storm. New competitors were entering the market, oversupply was pushing down fares while airport infrastructure limited lowcost devleopent. The company had a pressing need to decide what direction to take and implement it flawlessly.
Opportunities detected
Matrix undertook a profound analysis to understand the situation facing the industry and the company. The main opportunities included a need to strengthen its business model to ensure a focus on efficiency, keep its costs the lowest in the industry, matain a strong participation in the key market, increase accessibility for potential passengers and expand its operation to a new regional base.
Proposed actions
Joint work between the company and Matrix defined four fundamental pillars for the company’s success which were agreed with he executive team. These included a regional expansion and the digital transformation of the business.
Impact
An aggressive expansion of the fleet was approved representing the largest investment ever taken by the company. The company expanded in the region, successfully opening a new base. In the domestic market, the company reversed and maintained occupancy rates above the industry average and an EBITDA comparable with global benchmarks.
