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Taking airlines from the drawing board to the skies

Taking airlines from the drawing board to the skies

Launching a new airline during a global pandemic may seem a bold move, but decreasing aircraft leasing rates and a great pool of experienced staff due to layoffs or furloughs have made an attractive business proposition for a number of aviation entrepreneurs.

In fact, 2021 saw over 40 new airlines take to the skies for the first time looking to make their mark in a fiercely competitive market. This group includes our new customers PLAY, Norse Atlantic, flypop, and Bamboo Airways, which are using the Accelya revenue management solution to help get their airlines from the drawing board to the skies.

  • Iceland’s newest airline, PLAY had its inaugural flight from Keflavík International Airport to London Stansted Airport in June 2021 and now flies to numerous European destinations with plans to expand to the US East Coast this year.
  • Founded in 2021 and starting operations this year, Norwegian entrant, Norse Atlantic, is a low-fare, long-haul carrier that will fly to various European and US cities.
  • flypop’s vision is to provide low-cost, point-to-point flights between London Stansted Airport and second cities in South Asia, starting with India. The UK newcomer’s operations will come to fruition in early 2022.
  • Newly-launched Vietnamese arrival Bamboo Airways invites passengers to explore the world with them and fly to some great spots in Germany, UK, Taiwan, Korea, Japan, Thailand, Singapore, and Australia.

What major technology decisions did these start-up airlines take to build their business from scratch? A passenger service system (PSS) followed by revenue management solutions are usually the first ports of call for any airline.

Revenue management is essential because its activities influence 65% of an airline’s bookings. For such a pivotal role, revenue managers depend on data to help them identify sales opportunities, forecast demand, and automate inventory control. With start-up airlines having no historical data to work with, revenue management needs another way to influence bookings.

Accelya’s start-up airline customers employ multiple sources of data to help them make critical pricing decisions. For example, live booking data gives them a real-time snapshot of sales to track demand. Third-party fare data gives airlines real-time insights into competitor actions to instantly respond to the changing landscape. Other important sources include market capacity, look-to-books, and shopping data.

Adrian Flores, Accelya’s VP Sales & Support for revenue management, tells us more about Accelya’s solution, “By their very nature, start-up airlines are fast and nimble, requiring a quick implementation. Accelya’s revenue management solution was installed in only a couple of weeks for some customers, giving the new entrants the best market insights from the outset. Accelya’s experts have worked with many start-up airlines over the years, and our revenue management systems are constantly evolving to ensure they meet customer needs.”

With over 80 of the most profitable airlines already trusting Accelya’s revenue management capabilities, these new carriers are in good hands and ready to take on the world.

Contact Accelya’s experts to learn how our revenue management solution can help get your airline into the skies.

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