Azul Airlines Aim to Add One More Passenger Per Flight

Case Type: market sizing; increase sales.
Consulting Firm: Ernst & Young (EY) final round job interview.
Industry Coverage: airlines.

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 Brazilian AirlinesAzul 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?

Possible Solutions:

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7 Responses to Azul Airlines Aim to Add One More Passenger Per Flight

  1. Derrick says:

    I don’t get one thing: why want to one more passenger when your load factor is not close to 100%? why not focus on getting more people and maximize the load factor?

  2. L.Z says:

    I like this approach, and I agree with the comment above. What happened with the market strategy?

    On a different note, 60*9 is 540 (not 720), therefore the extra revenue per month would be: 740/30(days) * $150 (Average ticket price) = $3,700,000.

    • consultingcase101 says:

      Thanks for the catch. Corrected now :) Also, maybe you can share here your answer/solution to part 2 of the case: marketing strategy to attract these new passengers.

    • vicks says:

      can you provide me the answer for this…as i am not able to see the solution…

  3. Alice T. says:

    Great case, thanks for sharing, but did you forget to address part 2: the marketing strategy to attract these new passengers?

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