The Case of Flybaboo

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Category: Business and Industry

Date Submitted: 11/27/2010 03:00 AM

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For a long time, Julian Cook was thinking about plans for a regional airline. When Swiss International Air Lines dropped the air link between Geneva and Lugano, he took action, and FlyBaboo was born. The announcement of the changed regulations came in and FlyBaboo had the advantage that they were planning to fly with a Dash 8. But the time to set the airline up was quite short. FlyBaboo found a partner in the German carrier Cirrus Airways about a wet lease agreement. Everything had be done very quickly and Flybaboo successfully to start up.

Flybaboo aims to become a real regional carrier - step by step. It was currently flying between Geneva and Lugano, as well as Lugano and Venice. Beside FlyBaboo, there were a number of other companies and persons which wanted to fill the same gap. Meanwhile, increasing competition from both new and established players was emerging in Switzerland again.

The story of Flybaboo, a niche airline start-up in a crowded market, provides us with the opportunity to examine topics such as business model, unique sales proposition, developments, risks and competitive advantages.

1. Flybaboo’s unique sales proposition

The unique sales proposition plays a vital role in marketing the business. It is one more way to set the business apart from the competitors.

Based on the analysis of the business model, it can be concluded that three unique sales propositions defined Flybaboo’s competitive advantages.

First and foremost, a special aircraft type Dash 8 chosen by Flybaboo achieved an excellent result. Unlike the typical Boeing 737 or Airbus 320 aircraft, the Dash produced by Bombardier Aerospace was seldom operated by low-cost carriers. Dash 8 is an aircraft certified for steep descents with an approach path of more than 6 degrees, which was accorded with new FOCA regulations. A number of interesting destinations such as Lugano, St. Tropez could only accommodate aircraft like the Dash 8. The attractiveness of these airports depended to...