Bangkok--2 Oct--Asia Pacific Aviation
Patrick Murphy, former Chairman of Ryanair, today told delegates at the Centre for Asia Pacific Aviation's Third Annual India and Middle East LCC Symposium that control of pricing and generating revenue from non ticket sources was the key to success. Mr Murphy also discussed 'the art of pricing' and stated that airlines in India must take responsability for irrational prices.
"The market is a far more powerful determinant of prices than are costs. But pricing is fundamentally an art and it requires experience and professionalism from management," explained Mr Murphy to local and international delegates at the CAPA Symposium.
He went on to explain that pricing directly affects a carrier's yield and therefore profitability. Mr Murphy believes it is crucial to rationally manage this and to also look at other ways of generating revenue independent of fare prices.
"The golden rule is do not delegate pricing decisions down the line. This is an often committed mistake. CEOs and senior executives need to take responsibility for pricing to ensure profitability," revealed Mr Murphy, current Chairman of Aviation Performance Consultants based in Geneva, to the CAPA Symposium.
The Symposium, which includes full service and LCC CEOs, also heard about various ancillary revenue opportunities from Ryanair in Europe which aiming to increase ancillary revenues to represent 50% of its total revenues. Air Deccan COO, Warwick Brady revealed that the carrier earns 9% of its total revenues from ancillary sources, including advertising on aircraft.
The Third Annual India and Middle East LCC Symposium in Mumbai continues today. Featuring CEOs from full service and low cost carriers from across the region, as well as senior government and industry representatives, the Symposium is covering the challenges and opportunities facing the sector. Indian aviation is undergoing unprecedented growth, but profitability is being undermined through intense competition stimulated by new airline entry and significant new capacity being added by incumbents. Programme highlights include:
Air Deccan: Warwick Brady, COO
Jet Airways: Wolfgang Prock-Schauer, CEO
Rak Airways: Jack Romero, CEO
Sama: Andrew Cowen, CEO
SpiceJet: Ajay Singh, Director
Viva Macau: Andrew Pyne, CEO
Ryanair: Patrick Murphy, Former Chairman
Ohio State University: Prof Nawal Taneja, Aviation Department Chairman
IATA: Julian Carr, Manager New Product Development
Landor Associates: Bill Larsen, Director
PhocusWright: Ram Badrinathan, Asia Pacific Analyst
Ginger Hotels: Prabhat Pani, CEO
CAPA Consulting: Andrew Miller, CEO
Centre for Asia Pacific Aviation: Peter Harbison, Executive Chairman
Key details about India & Middle East LCC Symposium 2006:
Date: 29/30 September 2006
Venue: Grand Hyatt Mumbai
Attendance:
250+ Delegates
25+ High-level Speakers
50+ Global Media Representatives
Media Exposure: Global newswire press coverage
Broadsheet newspaper coverage on three continents
Global television coverage: Over 50 website listings and advertising
Live web streaming of interviews to over 500,000 people
The event will also feature an extensive supplier exhibition and enhanced sponsor offering, with over 10+ hours of networking time.
For more information, please visit: http://www.centreforaviation.com
For sponsorship details, please contact Misty Cambray, Marketing Manager [email protected] Ph: +612 9241 3200.