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Medium Customer Experience Operations Market Entry

BLUE & RED AIRLINES GROUP

#Airline Industry #Customer Experience
ProHub Comment

This case tests the candidate's ability to diagnose customer satisfaction problems using NPS data, conduct root cause analysis of operational issues, and quantify the business impact of improvements. It requires both qualitative brainstorming (identifying pain points) and quantitative analysis (calculating passenger impact), making it ideal for assessing well-rounded problem-solving skills in the airline/operations domain.

Estimated Time 26 minutes
Difficulty Medium
Source IESE
10 / 100
Our client, Red & Blue Airlines Group, it’s based in Santiago, Chile and has operations to many cities in the globe. Its most iconic route is Santiago – Puerto Natales. Today, the managing director of Network Planning needs your help, he wants to increase quality in this market.

Clarifying Information

  1. Revenue sources: Passengers and Cargo.
  2. The company operates this market for 10 years and it has no competition.
  3. The market has a premium leisure component, who are corporate passengers during the rest of the year.
  4. During the last two years, there has been an increase in Cargo but a decrease in customers. There are some internal causes but also others means. The idea is to increase the customer experience.
Mock Interview
Interviewer

Our client, Red & Blue Airlines Group, it's based in Santiago, Chile and has operations to many cities in the globe. Its most iconic route is Santiago – Puerto Natales. Today, the managing director of Network Planning needs your help, he wants to increase quality in this market.

You

Thanks. Before analyzing, I'd like to clarify a few key questions...

Interviewer

Good question. Let me provide some background information...

You

Based on this, I suggest analyzing from these dimensions...

AI Score
Structure Analysis Communication Business Sense Quantitative
Practicing...
Score coming soon
Practice this case with AI Mock Interview

Red & Blue Airlines Group operates a monopoly route in Chile but has experienced declining customers over two years despite growing cargo revenue. The candidate must identify the main drivers of customer dissatisfaction (punctuality, seat comfort, brand reputation), analyze punctuality issues across internal and external causes, and recommend prioritized solutions with quantified business impact.

Key Insights:

  1. Use Net Promoter Score data to identify specific customer dissatisfaction drivers rather than making assumptions
  2. Separate internal controllable issues (unscheduled maintenance) from external uncontrollable factors (weather) to focus on quick wins
  3. Apply impact-complexity matrices to prioritize improvements by business value versus implementation difficulty
  4. Quantify customer impact by segmenting by time blocks and calculating improvement potential (~18% improvement possible in this case)
  5. Consider operational trade-offs and financial constraints when recommending changes to schedules or requiring capital investments