Previous Projects

LCC start-up business case

2009 / 2010

North American investment group

LCC start-up business plan & investor guidance

The project sponsors required an operational low cost carrier (LCC) start-up plan be developed as part of a larger investment prospectus for launching a new LCC in the Canadian marketplace.  Specific requirements of the business case are detailed below:

Project requirements:

  • World-wide LCC product, service & pricing benchmark analysis
  • Marketplace competitive analysis (route specific)
  • Complete product specification & service offering recommendations
  • Commercial plan development
  • Financial analysis (5-year outlook)

Project undertakings:

  • Benchmark & review of LCC’s world-wide including start-up capital funding, ownership structure, operating finances & profitability, brand positioning, product & service levels, and strategic plans.
  • In depth route-specific competitive analysis (product, pricing & schedule) of current competitive set.
  • Detailed ‘war-game’ scenarios of anticipated competitive reaction to the LCC launch (e.g. short- and medium-term adjustments to product offerings) and estimated cost implications for competition to implement those adjustments.  Identification & costing of tactical response options available to the LCC to combat presumed aggressive competitive pressure.
  • Product design specifications for all pre-, post- and in-flight product & service levels.  Also, a preliminary financial (costs) assessment for potential product & service enhancements (in response to competitive actions and/or as a means to increase % share).
  • Recommendations for brand implementation & livery execution.
  • Commercial plan detailing network, fleet, product & service specifications, staffing, organizational structure, corporate & ownership structure.
  • Financial analysis completed (for initial start-up & on-going operations) based on Commercial plan.  Projected 5-year revenue & expense outlook presented.

Project outcomes:

  • LCC launch plans put on hold dues to macro economic uncertainties (2009)
  • Business plan reviewed & updated (2010)
  • Decision to launch put on hold