Hello everyone, my name is Fawaz and I am responsible for marketing communication at Jazeera Airways, in addition to being an amateur blogger of course. We have been reading your questions about Jazeera Airways on this blog over the past few months. Questions that ranged from “how can we afford fares as low as KD 5?” To questions about our brand name. In an effort to answer all your questions, we recently asked Mark to gather questions you had for Jazeera Airways and in return we promised him that we would answer all of them, exclusively on this blog. Lets start
Mark: How can you afford to offer super low fares?
This is a great question that I will answer in two parts. First, we prefer to fly our planes full of travelers paying less per seat rather than flying with less travelers paying more. Other airlines prefer high fares and less passengers, which does not make sense to us. Why would they want to impact less people? For us, we enjoy flying people and being part of their lives.
The second part involves our business model that works to achieve high efficency and a lower operational cost base. In other words, we do more with less. We achieve our high efficiency by employing
1. state of the art technology to streamline processes
2. hardworking, multitasking, highly motivated team
In sum, we can afford super low fares because our business model is based on volume more than yield, and because we depend on leading technologies and great team to lower our cost.
Follow-up: How are you able to lower your cost?
We are able to maintain a lower cost base and high level of quality and safety through three main ways:
1- Recruitment- We recruit highly motivated and committed team members. This is crucial as it has direct impact on day-to-day cost. Being able to wear different ‘hats’ (so to speak) and do the work of several people is a quality we seek in and build in our team members. That’s why we call our people our ‘high flyers’.
2- Aircraft utilization – Aircraft on the ground do not make money, so we keep our aircraft in the air where they do make money. We achieve this through quick turn-arounds at the gate. Our planes arrive at a destination, wait for our travelers to disembark, board return travelers, and fly back to base ready to take off again in less than 45 minutes.
3- A fleet of single-type fleet: the Airbus A320.
If you had Porsche and a Ferrari and Lamborghini in your drive way, you would need three different specialized garages to service them with three different mechanics and three different spare parts inventories. On the other hand, if you had three Porsches you would only need to contract a single garage to service all three and your maintenance costs would be much lower. Aircraft are the same, though much more sophisticated. Allow me to elaborate.
If an airline had an A320, an A310, an A340, and a 777, they would need certified captains, first officers, cabin crew for each type of aircraft. In this case, if a 777 pilot falls sick with the flu, an A320 pilot cannot just jump in the captain’s seat of a 777 unless she is trained on a 777. Because of this, airlines with multiple aircraft types in their fleet need to have more pilots to cover scenarios like this, more engineers who do nothing but wait for someone to get sick, and spare parts inventories to cover all types. This creates redundancies and inneficiency.
In our case, we have an all-A320 fleet. We do not need to hire more crew since any of our crew can jump in any of our aircraft and take-off and any of our engineers is licensed to work on any of our aircraft, and our spare parts inventory covers all our aircraft.
4- Investment in Technology – By investing heavily into technology, we were able to raise efficiency, reduce operational cost and drive the price of tickets down even further. We currently employ over a dozen world class technology systems and tools that range from the booking systems we use to satellite aircraft monitoring that tells us the status and integrity of each aircraft while it is in the air no matter where it is on earth, and automatically dispatches support teams and parts to the destination airport if the situation required. These are only some of the benefits of having world class Lufthansa Technik engineers and technology working with us and for us.
