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PEGASUS AIRLINES

Case Study

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Introduction

The airline industry has recently experienced anunprecedented expansion of so called low-cost

carriers.

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Pegasus Airlines: A Brief History

Pegasus Airlines was established in 1990 as a

joint venture between Aer Lingus, Silkar Yatrm

and Net Holding in Istanbul.

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Throughout its successful 19-year history,

Pegasus has become one Turkeys leading

airlines and currently has scheduled and charter

flights to more than 100 different destinations in

17 countries.

Today they operate a fleet of 24 aircraft.

Pegasus Airlines: A Brief History

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The privately-owned Turkish LCC already

operates an extensive European and domestic

Turkish network with services to Eastern Europe

and the Middle East growing rapidly.

Pegasus Airlines Today

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Core Problem

The core problem of Pegasus Airlines lies in their

capability of attracting new customers andretaining old ones.

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Subsidiary Problem

Unsatisfactory customer service, packed and

dirty aircraft highlighted by the worst on-time

performance

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S.M.A.R.TObjectives

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S.M.A.R.T. Objectives

Designate work with specificity.

Carefully delineated duties and responsibilities of the

workforce can help avoid or reducemisunderstandings and keep employees focused onrestoring service and maintaining order.

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S.M.A.R.T. Objectives

Select metrics that are measureable

Be certain to align goals with the appropriate teamand situation and ensure that data generated fromthis area is obtainable and applicable forassessment.

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S.M.A.R.T. Objectives

Provide timely feedback and assessment.

Differentiate itself from other airlines as the airline that can getpassengers to their destinations when they want to get there,on time, at the lowest possible fares while having fun.

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SWOTAnalysis

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S O

Safety Record

Airline staff ishighly trained and

experienced

Continualexpansion

opportunities

Technologyadvances can result

in cost savings

SWOT Strength & Opportunities

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Can Segment the

market

Link-ups with othercarriers can greatlyincrease passenger

volumes

S O

The product itself-Air Travel

Recessionaryconditions suit

LCCs best

SWOT Strength & Opportunities

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W T

Airlines have a high"spoilage" rate

Aircraft isexpensive andrequires hugecapital outlays

Global economicdownturn

The price of fuel isnow the greatest

cost for manyairlines

SWOT Weaknesses & Threats

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W T

Difficulty makingquick schedule and

aircraft changes

Plague or terroristattacks

Large workforcesspread over largegeographic areas

Governmentintervention

SWOT Weaknesses & Threats

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Alternative Coursesof Actions (ACAs)

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ACAs

Attracting Customers

New customers can be attracted to a particular airline

through advertising and special offers; existing customersmay be retained by an individual airline via a loyalty schemesuch as an airline club offering air miles and rewards.

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Fleet Management

ACAs

Budget airlines such as Pegasus aim to maximize revenuefrom each airplane by selling as many seats as possible at

low prices, with the first seats on any given flight usuallyavailable cheaply, the last seats being more expensive.

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Service Product/Promotions

ACAs

The actual product--aircraft seating space, aircraft type,

class of service offerings and booking ease--must be atleast industry-competitive for success.

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Recommendation

The core of the problem lies in the inability of Pegasus

Airlines to retain old customers, the most well-

balanced solution to the problem will be ATTRACTINGCUSTOMERS.

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HOW ?

Via a loyalty scheme such as an airline club

offering air miles and rewards.

The effectiveness of an airline's advertising may be measured by theamount of revenue generated in relation to the financial cost of promotion

and advertising.

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Sheila Mae Rosary G. Serrano

Mary Joyce C. San Pedro

Kimberly O. Papa

Dr. Oscar Gulmatico

Presented by :

Presented to :