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Industry

Air Transportation & Services

Bain's deep air transportation practice expertise, and best practice cross-industry thinking, helps us understand today’s industry challenges across the entire commercial value chain. Our methods have reduced complexity, increased flexibility and improved decision making for our clients. The result: our clients outpace the S&P by four to one.

Insights

What We Do

Bain's expertise in airline and air transportation and services consulting includes work in the following strategic and operational areas:

We also bring a strong mergers and acquisitions and private equity lens to our work. Collaborating with our Private Equity group and Mergers & Acquisitions practice experts, we can help clients evaluate potential deals through due diligence and execute M&A and post-merger integration.

Our Team

Our Perspective

After several years of heavy losses, efforts by major US airlines to restructure their businesses show signs of paying off. Labor costs as a percent of revenue have declined, load factors have increased substantially and many US majors have grown their share of international flying. Nevertheless, airlines have a lot of work ahead—and need to prepare for industry consolidation—if they expect to earn returns that exceed their cost of capital over a full business cycle.

In Europe, as low-cost carriers have expanded aggressively, network airlines increasingly compete for the high-yield, long-haul traffic. Consolidation is likely in Europe as well, as airlines are pressed to manage capacity in line with demand and invest in network differentiation.

The long-term winners will be large airline groups that can extract high yields, as well as low-cost carriers that manage to maintain their cultures and their keen focus on affordable air travel. Second-tier carriers face some difficult choices, coming under increasing pressure and subject to the ongoing business cycles in the industry.

Client Results

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