Low Costs Flights
Image is Everything
(Emirates is not our partner .... yet !!! .... but they are my ideal of 'quality, service and image)
THE PAST IS THE PAST - THE FUTURE IS NOW:
Low costs does not have to mean low quality or poor service. Our ideal is Emirates not only for their impeccable service but also for their image. It is our intention, on the other hand, to create a new paradigm in air travel where we treat our clients like princes and princesses. African countries are not well connected and internal travel is usually dangerous because of the condition of roads and the poor maintenance of many cars. Efficient Internal air routes are therefore critical to the in-land transport of the people, promoting commerce and the smooth movement of people and goods. Our objective is, therefore to utilize the correct aircrafts to create networks of air-routes to effectively and efficiently connect the unconnected towns and cities.
The airline industry is a notoriously bad investment especially if you consider the business from the point of view of only the company while ignoring its role in the economy. Of the major industries on the Fortune 500, airlines have had the worst 10-year total return to shareholders (- 12.6% on average annually from 1999 to 2009). While the western world has too many airlines, too many planes, and too many price wars, which has caused the largest U.S. carriers to lose a total of $60 billion over that period, African countries are poorly connected. But Neeleman, the founder of Jet Blue and Azul, presently the largest airline in Brazil, is adamant that airlines can pay off -- if you know where to put your money.
By combining the CEMAC and ECOWAS we are creating a market superior to the Brazilian Market and almost as large as the entire United States of America. The Brazilian market is where Neeleman had his most recent success. Brazil, Latin America's largest economy, has rebounded quickly from the financial crisis, with an anticipated 5.8% rise in real GDP this year. The China-like growth rate of its rising middle class -- 100 million people and expanding every day -- has led companies from Coca-Cola (KO, Fortune 500) to Procter & Gamble (PG, Fortune 500) to Ford (FORD) to raise their stakes in Brazil. Neeleman has drawn high-profile investors like private equity firm TPG, which has invested $30 million in Azul. In its brief life span, at least, Azul has proved Neeleman right. The airline started flying in December 2008 and registered 2.2 million passengers in its first 12 months, shattering the previous record for a startup airline -- held by JetBlue, another Neeleman start-up.
"It took JetBlue 10 months and 10 days to get it's first 1 million passengers. We did it in less than eight months," Neeleman says commenting on AZUL. He expects the startup's current headcount of 2,100,000 to reach 2,500,000 or more by year-end. Revenue, $150 million last year, will probably more than double this year, he says, and privately held Azul is on track to turn its first profit. Neeleman isn't in this just for the money. The stakes are personal. He was born in São Paulo and lived in Brazil until he was 5. His father, then a journalist for UPI, moved the family back to Utah, but at 19, David returned to Brazil to do his Mormon mission work. Gary Neeleman isn't at all surprised that David, the second oldest of his seven children, is back in Brazil. But he frankly wonders how long his son will last at his latest highflier. "David's modus operandi is totally contrary to what a lot of boards and investment bankers are in favor of," says Gary, 76. "To David, service to his employees and customers is paramount." The son insists he's prepared for whatever turbulence lies ahead. "All of us have failures," he says. "What matters isn't what happens to you in life. What really matters is how you react to it."
The future of life as we know it on Earth is in our hands!