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New service to help airlines increase revenue

Jan. 29, 2008, Dublin, Ireland - Two former Ryanair executives have formed a new company, revaero, providing consultancy and outsourcing services to the airline industry.


January 29, 2008
By Carey Fredericks

Jan. 29, 2008, Dublin, Ireland – Two former Ryanair executives have formed a new company, revaero, providing consultancy and outsourcing services to the airline industry, on how to achieve the highest income from seat sales in this increasingly competitive industry.

Jim McMahon and Seamus Moriarty both have extensive experience as revenue managers and made the decision to start their own company after receiving repeated approaches from airlines across the world, looking for advice on how to price their seats. 

The company has secured outsourcing contracts with two carriers. US airline Skybus was founded by former executives from Southwest, Ryanair and IBM and began operating in April 2007.  revaero manages the entire revenue management function for Skybus.   The company is also working with AirAsia, the largest Asian low cost carrier, overseeing its in-house revenue management team.  Air Asia currently has 65 aircraft and another 150 on order and also recently launched long haul routes under the brand Air Asia X. 

revaero is working on a project basis with European based airlines and an Asian hotel chain.  It expects to grow its client base significantly in the coming months and the company is now embarking on a recruitment drive to develop a centre of excellence in Dublin on revenue management.    

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Jim McMahon, Chief Operating Officer at revaero says the service they provide works for any airline model, whether it’s a low cost or premium carrier.  “revaero provides revenue management service  utilizing industry best practices in attaining high volume, high yielding opportunities based on the popularity of the destination, type of traveller, seasonality and/or event driven demand.  We assess these factors and take into account historical data for routes before recommending a price to the airline for that flight.  Then when a flight is open for sale we track how seats sell, adjusting prices to either stimulate demand or to ensure maximum return when demand is high.”

Seamus Moriarty, Managing Director of revaero says, “Effective pricing is a balance between stimulating demand and maximising the revenue from each seat sold.  The airlines that succeed are those who get the balance right.  That’s where we can add expert knowledge and insight. As competition in the airline industry intensifies and costs increase, the demand for revenue services is higher.  We expect our business to grow significantly in the coming months on the back of this demand.  ”