Case Example“Sky Airways”

Alessio PorcellatoMatteo Biasotto

Sky Airways

• European airline

• Most of the routes in Europe

• Daily flights to New York, Johannesburg, Mumbai and St Petersburg

Problems

• Increasing number of complaints

• Expected problem: link between number of complaints and minutes’ delays

• Unexpected problem: complaints about on-board catering

• RPK (revenue passenger kilometre) declined by 5 per cent over the past three years

• Tourist Class:

+ the food cost is little different+ possible in long hauls (more time available)

Suggested Solutions (I)

pre-cooked and reheated meals(classic tourist class style)

pre-cooked food, heated, assembled and served in front of customers

(business class style)

• Business Class:

Suggested Solutions (II)

CULTURALLY SENSITIVE MEALS

upgraded service for the premium-fare passengers

Challenges for Catering

• Portions and cost of menus have a wide variations in quantity and quality in various airports around the world

• Biggest problems in furthest destinations

• Pressure to reduce costs → load the precise number of meals

• Not easy pre-flight predictions

• Cost effective and problems in weight

Possible solution: Reduce menus’ choice

(REDUCTION of VARIETY → REDUCTION of COST)

Challenges for Cabin Attendants

• Special meals (religious, dietary or health reasons...)-need of extra vegetarian and kosher meals.

• Knowing the content of every meal

• Last-minute passengers (need to ask more meals shortly before take-off)

• Not enough space for meals on the plane

Possible solution:

→ meals that need less preparation time and take less space

→ load additional special meals

(INCREASE IN STOCKS-CAPABILITY TO DEAL WITH UNCERTAINTY)

Challenges for Gate Managers

• Shortly before take-off, finding that the incorrect quantity, quality and meal type are loaded

• Need to delay the plane

Possible solution: stop providing meals altogether on short hauls (not everyone actually wants a meal)

(RE-FOCUSED ON THE SERVICE CONCEPT FOR SHORT HAULS)

Suggested Solution

Low

Low

High

High

PROCESS

VARIETY

VOLUME PER UNIT

Increasing

process

definition

Decreasing unit cost

COMMODITY

CAPABILITY COMPLEXITY

SIMPLICITY

Why are they not appropriate?

• The new process would have high variety and high volumes (complexity)

• The new process would be expensive

• Decreased customer satisfaction (delays)

• Wrong service environment (no room for all meals on plane)

Outside-in Vs Inside-out

ServiceThe customer’s (outside-in) perspective

Experience Product Benefits

Airplane flight comfortable flight,relaxing experience

no delay,good food

reach the destination with no stress

ServiceThe operation’s (inside-out) perspective

Inputs Processes Outputs

Airplane flight X X flight on time,requested meal

What could be appropriate?

• No complete meals on short hauls for tourist-class passengers (service doesn’t fit customer needs), just snacks (that need less space)

• Reducing meal variety, increasing food quality

• Special meals have to be confirmed during reservation

• Request meal content’s information to the food suppliers

Thank you for yourattention