Case Interview Question #00243: Our client is Azul Brazilian Airlines, a major Brazilian domestic low-cost airline company based in the Greater Sao Paulo metropolitan area. As of January 2011, Azul Airlines had 7.74% of the Brazilian domestic market share in terms of passengers per kilometre flown. Azul also achieved the highest load factor in the Brazilian domestic market with an average factor of over 85% since March 2009.
The airline’s CEO just contacted you (a senior consultant at Ernst & Young) and said that he wanted to put one more passenger on each of his company’s flights. We will go to a meeting with him in an hour and we need to prepare two things: 1. The financial return of one more passenger per flight. Is it worthwhile to do so? 2. The marketing strategy to attract these new passengers. How would you approach the case?