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Volaris: Low Cost, High Value in Operations
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Reference: IPADE-P 08 eC 01-E
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Year: 2006
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Number of pages: 39
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Geographic Setting: México
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Publication Date: Jan 9, 2008
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Fecha de edición: Jan 1, 2009
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Source: IPADE (México)
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Type of Document: Case
Description
Volaris began operations on March 13th, 2006 (the result of an agreement between four partners: TACA, Discovery Americas I, Inbursa and Televisa). It defines itself as a highly efficient airline, with the goal of offering its clients the best travel experience at a just price. the goal of offering its clients the best travel experience at a just price.
The origin of Volaris was based on the identification of a market with high potential and in a very attractive context for the operation of a high-efficiency airline: high prices in the airline tickets, 90 million people a year using buses for transportation. The project had a frame of reference of the basic principles of a low cost airline (LCC ): 1)optimize cost, through the use of a homogenous fleet with direct channels of distribution, 2) high growth in market share, covering sub-served or overpriced markets, 3) simplified, convenient and transparent processes, that reinforce the added value to passengers (in particular, punctuality in services), 4) use of a secondary airport, 5) motivated personnel, compensated according to productivity and in a friendly and fresh culture, 6) unquestionable safety, with new aircraft, 7) world class highly reliable maintenance processes and 8) financial strength to commit to growth and face unexpected events.