LOT: Arresting decline in a competitive market

The Challenge:

Logo LOTStar

LOT Polish Airlines had been represented in the UK for some years, by a major multinational GSA. Because of conflicts with the GSA’s other (more lucrative) airline contracts, LOT was suffering a steady decline in its market share and cargo revenues. How could LOT arrest this decline, and restore its once strong market position?

The Select Solution

LOT Polish approached Select because of its strict policy of not representing conflicting carriers. Select:

  • Initiated a precisely-targeted sales and marketing campaign to restore market awareness
  • Proposed and exploited new revenue streams and products (such as mail and courier) to enhance yield and market share
  • Targeted UK regional airport departures where these provided attractive alternatives to LHR flights for customers
  • Offered a much improved IT and communication interface for Customers
  • Enhanced transparency of services beyond Warsaw

Search Results

In just six months, Select increased LOT’s share of the Warsaw market alone from 50% to 87%. Significant cargo volumes have been generated for domestic destinations in Poland and throughout LOT’sinternational network.LOT flights from the UK are now running at capacity, with complementary RFS during periods of peak demand.

 

AIR Namibia LOGO pipAir Namibia: a market redefined

The challenge:

After a break of 18 months, Air Namibia restored scheduled service to the UK at short notice. But its earlier weekly B747 from LHR was replaced with 3 x weekly MD11s operating from the less popular LGW, providing 55-60 tonnes’ capacity per week. With a UK - Namibia cargo market estimated at under 200 tonnes per year, how could the airline exploit its expanded capacity and increase its cargo revenue?

  • Established cargo reception at LHR, feeding RFS services to LGW.
  • Established cargo handling and reception at LGW.
  • Set up UK-wide cargo reception and hand-out facilities at regional airports to increase catchment area.
  • Won and serviced several lucrative mail contracts, including Royal Mail.
  • Introduced RFS from Windhoek to all major South African cities, facilitating fast overnight transfers to the largest market in Africa.
  • Introduced RFS to Gabarone, Botswana to capture additional transhipment cargo.
  • Marketed Air Namibia Cargo through Select Airline Management’s partner offices in Asia and Middle East, generating additional air cargo for Southern African destinations.
  • Initiated four-week,pre-launch sales and marketing campaign comprising email, fax and direct mail, supported by sales visits throughout UK to top potential customers.

Select Results

The first Air Namibia flight uplifted 40cbm of cargo. The second flight was full, with 70 cbm of cargo. Within the first month alone, Select loaded 100 tonnes of cargo ex UK: half the previous annual market.

Air Namibia is now successfully re-established as carrier of choice to Namibia, and is a significant force in the overall Southern Africa market - supported by several big-name forwarders. Select has totally redefined the carrier’s cargo market and revenue expectations.

WOW: An Icelandic success story

WOW was founded by Icelandic entrepreneur Skúli Mogensen in 2012, and its proud boast is that it is totally debt-free. WOW commenced operations to the UK in its first year, and Select Airline Management was appointed from the outset to market the cargo capacity on its twice-daily A320/321 flights ex London Gatwick.

Select successfully supported the London Gatwick flight departures, by establishing a scheduled RFS programme from UK wide cargo reception points.

Select’s thorough market knowledge and close relationships with the freight forwarding community enabled WOW to gain revenue from cargo operations starting in month one, and increasing steadily thereafter.

WOW’s capacity and capabilities grew dramatically with the introduction of scheduled wide body A330-300 aircraft from Summer 2016. These can now carry large and heavy cargo shipments both to Iceland and beyond – serving major air cargo destinations cities such as Boston, Los Angeles, San Francisco and Toronto.

Select has worked hard to build WOW’s profile in the UK cargo market – initially establishing it as the market leader to Iceland and, more recently, gaining it a foothold in the important transAtlantic market.

Further flight frequencies and more A330 widebody flights are planned for 2017; meanwhile the massive contribution of UK cargo revenue is playing a major part in the carrier’s overall expansion.

CityJet: Sales AND service . . .

CITYJET LOGO pipDublin-head quartered CityJet appointed Select to manage its entire, network-wide cargo product in May 2016.

As a low-cost carrier with multiple rotations daily from its London City hub to major European destinations such as Dublin, Amsterdam and Paris, and limited time for aircraft turn arounds, CityJet needed much more than just a sales agent: this job necessitated the close supervision of handling at every destination, to ensure the cargo loading and unloading operations did not interfere with passenger schedules.

Select set about appointing local sales agents and handling agents at destinations in the CityJet network. At the same time, Select created a multi-faceted cargo product that would maximise the revenue opportunities from the carrier’s frequent services, while working within the limitations of its RJ85 commuter aircraft. Products launched included standard and priority cargo, courier and mail, repatriations and pets.

To compensate for the lack of forwarding presence at London City, Select also instigated a regular RFS link from Heathrow, where it established a receiving centre for the convenience of freight agents which were also delivering to other carriers.

By the end of June, the substantial volume of cargo carried on the CityJet RJ85 fleet had begun to make a significant contribution to the carrier’s overall revenues and profit.

By the end of October 2016, Select’s network had successfully generated revenue on inbound flights. In addition, the launch of international RFS operations supplemented the flown capacity and extended CityJet’s capabilities to include larger shipments and heavy items, outsize and dangerous goods.The RFS system also opened up interline opportunities via London.

CityJet continues to grow, and is in the process of receiving the first wave of 15 new Sukhoi SSJ regional jets – with options on a further 16 aircraft. This expanded fleet will support its plans to add more destinations to its network from March 2017.

CityJet Cargo is now an established brand and successful business, with an assured place in the airline’s exciting development plans.