Spanish Airlines

ProHub Comment

This is a classic profitability case requiring candidates to analyze both the macro market context (competitive consolidation, new entrants) and the client's specific business model. The case tests structured thinking across three dimensions: market dynamics, business model components, and financial levers (revenue growth vs. cost reduction). The scenario analysis component adds real-world complexity by introducing external shocks.

Estimated Time 15 minutes
Difficulty Medium
Source PeterK
50 / 100
A Spanish low-cost airline has been facing declining profitability. They run six domestic routes. Several newcomers have entered the low-cost airline industry in Spain recently. How to improve the client’s margins?

Clarifying Information

  1. The airline industry in Spain is fairly consolidated with top-5 players (incl. two low-cost carriers) capturing 95% of the market
  2. Our client is not a top-5 player
  3. We don’t have any information on the specific profitability goals
  4. The client serves both leisure and business travellers