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Getting to Yes: The New Imperative for the Global Airline Industry

Volume XVIII, Issue 19
May 24, 2016
by L.E.K. Consulting,
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Summary

With ancillary revenues now running at more than $50 billion of very high margin revenues per year against IATA’s projection of $36 billion in net profits for the global airline industry in 2016, ancillaries have established themselves as the bedrock of a financially secure airline industry.

For more than 40 years, the airline industry has trained their front-line staff to “just say no” in order to drive down costs and complexity and meet operationally focused metrics. But with ancillaries becoming more like merchandise, customers now have the opportunity to choose their specific experience based on their individual needs.

In this Executive Insights, we discuss how airlines can get to yes. Given the economic importance of ancillary revenues, saying yes can improve true customer loyalty and, in turn, drive future superior and sustainable financial performance.

http://cdn.lek.com/sites/default/files/1819_Getting_to_Yes_New_Imperative_for_Global_Airline_Industry_LEK_Executive_Insights.pdf