Previous Projects

Pluna | commercial plan

2010 / 2011

Pluna Líneas Aéreas Uruguayas S.A.

Review of commercial plan & bankruptcy exit strategy

With bankruptcy on the horizon and as a condition for financing, the initial task was to evaluate the robustness of the Pluna business plan post bankruptcy emergence.  However, despite assurances to restore the airline to profitability post-bankruptcy, our independant review & vetting of the commercial details of the plan suggested otherwise.  Subsequently, we were tasked with re-working the commercial plan to determine if revenues could be improved enough to support re-investment into the airline.

Project requirements & Project undertakings:

  • Prepare a review of the existing Pluna business/commercial plan, including a detailed evaluation of assumptions & the probability of meeting forecasted revenue (and cost savings) targets, specific to:
    • Network Optimization
    • Schedule
    • Alliance Strategy
    • Hub Connectivity
    • Product Design Review
    • Advertising & Promotion
    • Frequent Flyer Program
  • Stage 2 required a re-working of the commercial plan, including new revenue (and cost savings) forecasts.  This exercise was undertaken in light of heavy cash burn and a greater operating deficit than reported (due in part to recent fleet additions, and hidden losses in previous years due to non-payment of some fuel expenses).
    • The severity of the financial situation required an extensive audit; which culminated in numerous recommendations & changes to the plan that would make Pluna a more viable company going forward.

Select project findings/outcomes:

  • Competitive actions by subsidized airlines had resulted in losses on various routes that formerly were profitable.
  • Lack of alliance strategy had resulted in poor market inroads on new services to Brazil.
  • Poor fleet planning had led to the wrong equipment flying on key routes, (driving profitability further downwards).
  • The steadfast focus on ancillary revenue had led to poor customer service, mismanagement of yield management, and pricing disciplines that were almost too late to reverse.
  • Unfortunately, the final conclusion was it was too late to turn the airline around (without government support), and therefore no potential debtor in possession financing would be made available.


PLUNA Líneas Aéreas Uruguayas S.A.

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