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Porter Airlines business model

Bob Deluce, CEO of Porter Airlines, flying high

(Photo: Markian Lozowchuk)If you don’t know Bob Deluce, then you haven’t flown on one of his planes. When the CEO of Porter Airlines takes one of his regular strolls through Billy Bishop Toronto City Airport, Porter’s corporate headquarters and operations hub located on an island just off the Toronto waterfront, everyone recognizes him. Passengers reach out to say hello, as do his staff. One attractive flight attendant, dressed in Porter’s sleek navy shift dress, scarf and pillbox hat—a uniform that radiates Mad Men–style sex appeal—sidles over to say hello. She doesn’t introduce herself; they’re clearly familiar. “Will I have the pleasure?” she asks fawningly. “Not today, ” Deluce replies, smiling.

Porter Airlines President and CEO Robert Deluce and a member of the flight crew (Photo: Adrian Wyld/CP)The exchange is not as saucy as it appears. Deluce travels his own airline frequently, so when crew spot him in the lounge, they ask if he’s on their flight. By all appearances, they look forward to the occasion. Deluce has also been known to come down to the terminal to greet notable passengers—governors, cabinet ministers—when they arrive. As one observer put it to me, “He runs his airline like a family restaurant.”

Passengers disembark a Porter Dash-8 aircraft (Photo: Kenneth Armstrong/CP)But Deluce is more than a maître d’. He’s arguably the most successful entrepreneur in Canadian aviation history, and he owes his success to the close contact he keeps with Porter’s 2.5 million passengers and 1, 400 employees, something his CEO counterparts at Air Canada, with 35 million passengers and 27, 000 employees, or WestJet, 17 million and 9, 500, respectively, can only dream of. In an industry known for its aloofness to customer experience—sardine-tin cabins, irritable staff, extra fees, flight delays and overbookings—Porter prides itself on its spacious seating, friendly service, free in-flight food and beverages, and the best on-time record of any Canadian carrier.

“Our service drives a high level of passenger satisfaction, ” says Deluce. “Passengers warm up to us quite quickly.” He chooses his words diplomatically, but it’s easy to read between the lines of his politesse: travellers wouldn’t warm to Porter so “quickly” if the service with Air Canada and WestJet weren’t so infuriating. “No airline has been as successful as Porter at cultivating customer loyalty and creating a niche for its brand, ” says Robert Kokonis, president of the aviation consulting firm AirTrav.

Service at the Porter Airlines lobby (Photo: Markian Lozowchuk) Porter Airlines' Bob Delulce announces the purchase of a dozen Bombardier C-series aircraft, Apr. 10, 2013 (Photo: Keith Beaty/Getty)
Identifying strategic groups in the U.S. airline industry: an application of the Porter model.: An article from: Transportation Journal
Book (American Society of Transportation and Logistics, Inc.)

Europe has done it the right way.

by Van_Helsing

By deregulating the market and letting airlines compete or go out of business.
It's revolutionized the way Europeans travel.
In less than a decade, the Southwest Airlines revolution has swept through sclerotic Europe like a capitalist hurricane, leaving a fundamentally altered continent in its wake. Low-cost airlines have grown from zero to 60 since 1994 by taking Southwest's no-frills, short-haul business model and grafting on infinitely variable pricing, aggressive savings from the contemporaneous Internet revolution, and the ripe, Wild West opportunities of a rapidly deregulating and expanding market

Part two

by Bartleby_the_Scriv

The purpose of Chapter 11, and a reason why Europe is moving to adopt a version of it, is that it encourages risk-taking by providing firms a safe haven to survive a temporary financial crisis, and a way for creditors to avoid heavy losses through the distress sale of assets. But in the airline industry Chapter 11 is being abused simply to keep in place inefficient surplus capacity. America's airlines have lost $23 billion since 2001, and they look like losing a further $4 billion this year. Unless some airlines are allowed to go out of business, so reducing the over-capacity that is causing carriers to slash prices, the entire industry is endangered by financial failure

Part 8

by crax1983

Technology too may place some constraints on offshoring. Irving Wladawsky-Berger of IBM argues that some of the tasks currently going to low-cost centres may eventually return because their underlying technologies will evolve in a way that makes economic sense of putting them back in rich countries. At the moment, for instance, customer-service call centres are very labour-intensive. McKinsey says that wages account for 70% of the costs of a call centre in America. That is why they are rapidly shifting to Bangalore, Hyderabad and other Indian cities.
But firms such as AT&T are working on speech-recognition software that might, says Hossein Eslambolchi, AT&T's chief technology officer, soon be good enough to replace a lot of the routine inquiries currently handled in call centres

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