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BCG Easy Profitability

Getaway Airlines

#Airlines #Transportation
ProHub Comment

This is a classic profitability case requiring candidates to diagnose declining margins despite revenue growth, analyze market position, and develop growth strategies. The case tests structured problem-solving, numerical analysis, and strategic recommendation skills, with a heavy emphasis on brainstorming revenue growth levers.

Estimated Time 15 minutes
Difficulty Easy
Source PeterK
50 / 100
Getaway Airlines is a U.S. passenger airline that serves mostly vacation destinations. Their revenue has been increasing, however their profits are on decline. Last year their operating profitability dropped to 10%. The CEO has invited your team to look into the issue and help them turn things around. We’re in early 2020 (before the pandemic).

Clarifying Information

  1. The client offers nonstop flights to 50 destinations across the U.S., Caribbean, Mexico and Central America
  2. The airline has a hub in Minneapolis
  3. The client’s four major destinations are Las Vegas, Los Angeles, Portland, and Fort Myers
  4. Top-4 U.S. airlines capture 64% of the market
  5. The client didn’t provide any goals of profitability growth