PEGASUS AIRLINES

Aykut Murat Eroğlu

Management & Organization

Prof. Dr. Aykut Berber

Company Case

HISTORY of PEGASUS

1. 1990: Founded as Joint Venture Company (AER Lingus + Silkar + NetHolding)

2. 2005: Acquired by Esas Holding (Sevket Sabanci Family)

3. 2005: Started first domestic flight (Adana)

4. 2005: # of Aircraft: 14; Average Age: 5,39; Within Turkey; 6 Destination

5. 2005: Became 4th Airlines operating in Turkey

6. 2006: First International Flight (Stuttgart)

7. 2007: First Aircraft of planned fleet consists of 40 Boeing 737-800S 3,2B$

8. 2008: Started to give baby girls name to new aircrafts

9. 2009: Made film demonstrating cabin safety using the children of Pegasus Family

10. 2006-2010 Pegasus saw 42% increase while overall has only 15%

11. 2010: 8.6M Guest flew

12. 2010: First offered mobile phone check-in using a barcode.

13. 2011: $22.3M investment in two innovative technologies (groundbreaking achievement)

14. 2011: Flight training centre with the latest flight simulation technology. Put Pegasus top 10% of 582 Airlines

15. 2014: Domestic Market Share: 27,3%; International Market Share: 11,6%

16. 2014: # of Aircraft: 54; Average Age: 4,68; 36 Country; 86 Destination

SHAREHOLDERS AND BOARD of MEMBERS

AIRCRAFT FLEET

MISSION and VISION

BUSINESS STRATEGY

• Continue to grow operations both domestically and internationally;

• Maximize aircraft utilization, increase operating efficiencies and to lower cost base;

• Increase ancillary revenues;

• Increase focus on business customers

LOW COST CARRIER

LOW COST CARRIERS across THE WORLD

Domestic International

COMPETITORS

CORE CONCEPTS of PEGASUS BUSINESS MODEL

a) Fair Price : Create your comfort with your preferences

b) Departure on Time : Announcing punctual departure rates

c) Additional Services : Freely manage your own flight. Food, drinks and seat before flight

d) Flypgs.com : website takes care of each details of flight

e) Young Fleet: aiming to serve its guest with new aircrafts

a) TRUELY CUSTOMER FOCUSED

b) MORE THAN AMENITIES

c) LOVE YOUR CUSTOMERS

THEORITICAL CONCEPTS

Develop to meet customer expectation and priorities.

Put in place a yield management strategy for ticket pricing.

Developed policy of customer satisfaction guarantee.

Offers customer service experience at the airport.

Operated a one class interior configuration.

Provide training and technical services for other local airline.

Won “Best airline business price” in 2006 for innovative customer service.

Achieved the most searched airline in Turkey on Google.

TRUELY CUSTOMER FOCUSED

• In 2007 Pegasus was recognized as one of the TURKEY top brands.

• Select people to exhibit those values while directing the right person to the right

department at the right time.

• Share plans with Air Berlin and IZ Air.

• Has charter and scheduled service to 70 airports in Europe and Asia.

• Changed the preference of air travelers.

• Developed its intern market over 19 destination within Turkey.

• Term of weekly seat capacity , Achieved top 30 among European airlines.

MORE THAN AMENITIES

• Aims to keep up with it customers even they are not flying.

• Website titled “Pegasus listen to u”. (www.flypgs.com)

• Ensured successful service through safety, training and developed employee.

• Creative Communication with its customer.

• Offer great destination and easy access to international hubs.

• Uses efficient management techniques, delivering low prices with a high quality

service experience.

LOVE YOUR CUSTOMERS

WHAT is the Customer Profile?

• Customers need diversification and want to improve airlines industry.

• WHAT are the Differences ?

• Customer Oriented-Marketing Approach

• Low Cost Carrier Model

• Punctual Departure Rate Metric

• Customer Satisfaction

• Young Aircraft Fleet

• Customize Your Own Flight

CONCLUSION

VIDEOS