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Chapter 210 Low-cost airline strategy

In recent years, Tonia has been in charge of Mediterranean shipping alone. From the beginning, she was so dark, Tonia has learned a lot. The shipping industry has created a large number of world-class wealthy people due to the economic take-off brought about by the reconstruction of Europe after the war. The most famous of them is Onassis, the Greek ship king who married Kennedy's widow Jacqueline. However, in the 1980s, as global economic growth fell to a low point, the shipping industry also faced a serious overcapacity.

This is a disaster for all shipping companies that are used to the days when they can make money casually in the past. Freight revenue began to decline. In order to attract business, shipping companies had to reduce freight again and again. Therefore, the cruel price war turned the global shipping industry into a red ocean. Groups of shipping companies fell down. The busy cargo ships in the past were abandoned in the docks and finally could only sink to the bottom of the sea as artificial fish reefs. The super cargo ships that were booked in the shipyard were also abandoned one by one, and the owners would rather pay liquidated damages than continue to build. It was at this time that Tonya entered the shipping industry. With the support of the Gorky Brotherhood and Tonya's keen business talent, Mediterranean Shipping began to develop in the hands of Tonya, and grew up to become the world's second largest shipping company by stepping on the bodies of their peers.

The secret to Tonia's business is ultimately only one word, that is, saving. In order to reduce costs as much as possible, Tonia has simply put the word saving to the extreme. With the word saving, the business that is lost by others will make money, while the business that others can only earn money can make more money. This business can make Mediterranean Shipping Company earn more. After Tonia took over Southwest Airlines, this business was also transplanted to this company.

Donya just acquired the company a month ago and soon released a series of reform measures. Southwest Airlines canceled business seats and first class on all flights, and instead placed more ordinary seats. The conventional meal service on the plane was also cancelled by Donya, who only provided a few common drinks and peanut popcorn. Donya even replaced Southwest Airlines' boarding pass with plastic, so that passengers would reuse it after boarding the plane.

After this series of streamlining, the financial department under Tonia found that their ticket prices could be astonishing as the price of long-distance buses in the United States. Even Seriosha admired this result. Seriosha discovered that he had always ignored this advantage of Tonia's personality. Tonia was the first woman to establish an intimate relationship with Seriosha. His life was completely different from that of Kalim, the president's daughter, and Eva, who studied in top American universities. Tonia had to worry about her family's financial situation very early. This is probably the real reason why she is so good at reducing costs.

After more than a month of reform, Southwest Airlines, which has a new look, began to welcome customers with a brand new company image and service. Seryosha designed a new appreciation for Southwest Airlines, which is low-cost airlines, which is specializing in competing with long-distance buses in the United States. Aircraft has an advantage that long-distance buses are absolutely incomparable to long-distance buses. If the price is really reduced to the price of long-distance buses, who would still make bumpy and long-distance buses?

In order to accurately place marketing concepts in front of customers, Tonya deliberately spreads advertisements along the interstate highways in the United States. The tall billboards on both sides of the highway have become Southwest Airlines' main marketing methods. Because the readers of these billboards have the most readers are those passengers riding on buses. This is much more cost-effective than placing advertisements on TV. You should know that the price of TV advertisements is completely different from the price of billboards on the interstate.

While Tonya blindly cut costs, she did not forget to win over the hearts of the people, in order to make Southwest Airlines' employees more stable. Tonya launched an employee shareholding dividend plan within Southwest Airlines, so that every employee can share the company's interests. Although it is too early to say that success is successful, at least there is no excessive resistance in the reform process.

Seriosha now calls to Tonia to discuss Southwest Airlines every day, because Seriosha thinks that Tonia's cost-pressing skill is really useful. Perhaps the cost problem in Eva's high-tech companies are not so sensitive due to profit margins. However, for those manufacturing companies and industries that are already very mature, the cost of lower than all their competitors is simply a despicable ability. This is precisely the ability that most state-owned enterprises in the Soviet Union lack, especially in industries such as oil, natural gas, electrolytic aluminum. The costs of state-owned enterprises in these industries are too high, and such cost control capabilities cannot survive in the environment of downward oil prices.

The new business strategy has caused Southwest Airlines to lose a large number of old customers at the beginning, and they are basically high-end customers of Southwest Airlines. The profits contributed by a single person and a single trip are very high. However, Tonya knew in her heart that these people were more suitable for Pan American, Delta and United Airlines than Southwest Airlines.

This difficult period did not last long, and Southwest Airlines' flight attendance rate quickly began to rise rapidly until it finally exceeded its original level. A large number of working class replaced Southwest Airlines' main customer base and became the new service target of Southwest Airlines. And Tonya's business strategy finally won the unanimous recognition of Southwest Airlines from employees to partners.

Schwartzman thought that Tonia would acquire Pan American Airlines because Mediterranean Shipping has always been rich in investment. Last year, they took over the board of Volkswagen. However, he didn't expect Tonia would actually play a new trick on Southwest Airlines, an unknown domestic airline. Low-cost airline, why no one could think of such a unique concept?

Because Southwest Airlines' development was so smooth, Tonia began to win over her friends, Yuri's lover, Metzkina, and she jointly operated it. Metzkina was idle and wanted to find something to do. Metzkina and Tonia were flight attendants who entered the Soviet civil aviation at the same time, and were not completely laymen in the aviation industry.

Metzkina did not come to join Tonya empty-handed. She brought a bigger gift, which was the cheap hotel chain Ibis, Yuri acquired in her early years. Low-cost airlines and cheap hotels joined forces to fight against the treasure airliners and luxury intercontinental hotels of large airlines. Which business method is correct? This remains to be tested by the market.
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