Keywords: innovation, Volaris
Enrique Beltranena, CEO of Volaris, offered a talk named Flying Different at EGADE Business School, where he explained how the low-cost airline planned to build a disruptive business model, which contributed to the growth of Mexican aviation.
From 2006 to 2017, 46% of the growth of the domestic market is attributable to Volaris, Beltranena said.
In his presentation on April 26 at the Auditorium of the Monterrey site, Beltranena said that in 2005 there were 42 million air passengers in Mexico, against 1,850 million who traveled by bus, which spoke of an underpenetrated air market.
"The high rates of flights limited the growth of the market; an ultra-low-cost and resilient model was needed to fly differently than traditional airlines," he said.
Faced with the convention of "flying is a luxury", Beltranena said that Volaris came up with the disruptive idea of "being the airline of all" and the vision of making more people travel by plane.
Beltranena indicated that Volaris took into account what customers really value and need (direct point-to-point flights, just one class, easy way to buy tickets, lower fares up to 40%, discount club for clients and the most modern fleet), and build its business model around the concepts of cost reduction, "clean" and low base rates, more price-sensitive customers, more "you decide" complements and diversified capacity growth.
Thanks to this, from the year 2006 when the airline made its inaugural flight to 2017, 46% of the growth of the domestic market is attributable to Volaris, Beltranena said.
"Doing the same thing as others is easy, however, innovate, change, do things in a different way, take courage," he said.
The event took place during the Welcome Week of the April-July 2018 period of EGADE Business School.
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