Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE, RAISE PERFORMANCE AND COST BY SMALLER AMOUNT
CHOICE 2 ISOLATE SEGMENTS: DUE TO A UNIQUE CONVENIENCE
CHOICE 3 COMPONENT: SET OR RAISE MINIMUM PURCHASE REQUIREMENTS
| No. | SIC | Year | Notes |
| 1 | 4512 | 2003 | The regional carrier industry has a revenue-guarantee business model. "We present what it will cost us to run a certain number of routes for a given month, and we charge our partners accordingly. We don't care about fares or selling tickets like the rest of the industry. Our primary concerns are running efficiently, controlling costs and getting paid." Mesa turned a profit in 2000 but suffered losses in 2001 and 2002. Its customers are big airlines who have been suffering immensely. "Mesa may even be benefiting in some ways from its customers' woes–particularly because the major have been finding it cheaper to pay Mesa to run some of their regular routes." Mesa has been able to buy new American West Express jets and United Express routes. |
<<Return to Choice 3