Contact me if your airline is seeking to move to the next level!
Tom Bacon Consulting
Airline Revenue Optimization
Tap into four decades of commercial airline executive and consulting experience to execute a successful commercial strategy at your airline or travel start-up. Proven success with large and small carriers, full service international and low cost carriers, and regional operators; also, start-up travel companies targeting airlines as partners.
- Review your existing strategy with respect to competitive positioning, product differentiation, and revenue potential.
- Audit commercial processes versus industry best practices and unique airline positioning; includes review of pricing, revenue management, ancillary revenue, loyalty, marketing and distribution, alliances, fleet and schedule.
- Review travel start-up plan; identify target airlines and develop optimal pitch for successful deployment.
Strategy Review. Design strategy for long-term success based on analysis of ongoing market and competitive changes.
Commercial Audit. Assess commercial functions against best practices. Review metrics, processes, use of systems and aptitude for continual learning. Organizational analysis identifies opportunities for new integrating mechanisms and de-siloing.
Revenue Management Audit. Evaluate performance of the RM function, including pricing, demand forecasting, inventory controls, ancillary, fare bundling, and fare merchandising. Review RM systems for fit with airline capabilities and strategic positioning. Assess RM hiring and training programs.
Network Review. Apply metrics (including fleet mix, connectivity, profitability) to hubs or focus markets and major flight patterns; form recommendations for further optimization. Assess economics of existing and potential extensions of the network through regional agreements, codeshares, joint ventures and other partnerships.
Turnarounds/Corporate Transformations. Apply commercial disciplines in a financial turnaround. Organize major transformation founded in a change in strategy, network, or organization.
Mergers and Acquisitions. Develop plan for growth through acquisition; forecast revenue synergies. Create a work plan for commercial functions in preparation for a merger.
———————————————————–
Thomas F. Bacon
·1651 S. Eudora Street, Denver, CO 80222 ·tom.bacon@yahoo.com ·Mobile: 303-359-4623
Airline Commercial Executive
Executive with a track record of rapidly improving profitability in airlines undergoing dramatic change. Applies rigorous analytical approach to operations, marketing and strategy development. Leader in fast growth cycles and firms facing major restructuring. Harvard MBA.
Strategic Planning; Tactical Market Planning Airline Commercial Leadership Corporate Development; M&A | Pricing/Revenue Management Financial Planning and Analysis Alliances, Joint Ventures & Partnerships |
Professional Experience
Tom Bacon Consulting, LLC, Denver, Colorado January 2010 – Present
Management consulting firm with expertise in product management, financial analysis and pricing.
Principal/Owner
Founded consulting firm for creating successful commercial strategies within travel industry.
- Restructured Gulf-based airline as key member of consulting team. Revamped entire organization, including fleet, network, sales, and revenue management. Halved losses within 3 months.
- Outlined commercial requirements for legacy airline to restore its international market position.
- Supported start-ups, including reviews of strategy, formation of airline partnerships, and raising capital. Helped found a travel startup that sells “options” on flights. Served on Board for startup with innovative approach to travel personalization. Advised startup offering dynamic pricing for ancillaries.
- Provided process plan for revenue management for Middle Eastern airline on path toward privatization.
- Conducted commercial audits and assessments, primarily relating to network and pricing.
- Analyzed potential merger of two major U.S. airlines on behalf of a major labor group. Analysis led major labor group to support merger as airline’s path out of bankruptcy.
- Assessed pricing and commercial strategies of legacy European airline on behalf of its acquirer. Recommendations drove organizational and process changes.
- Developed network plan for low cost carrier to better compete against major carriers.
- Reviewed system enhancements and marketing strategy for major revenue management system provider.
- Regular contributor to online London-based travel publication and a Dubai-based travel vendor’s blog; thought leader on revenue management, ancillary revenue and branded fares; speaker at industry events.
FRONTIER AIRLINES, Denver, Colorado 2008 – January 2010
A $1.3 billion, low-cost carrier which successfully emerged from bankruptcy after posting industry leading earnings.
Vice President, Planning and Revenue Management
Spearheaded initiatives in pricing, revenue management and product offerings.
- After company filed for bankruptcy, CEO hired me to maximize revenue on a tight marketing budget and to position company for exit. Quickly eliminated lower margin products in response to higher fuel prices and need for liquidity – total capacity down 18%. Introduced new revenue management techniques including daily metrics for cash forecasting. Adjusted demand outlook for 900,000 products through economic cycle.
- Introduced new airline pricing model for increased differentiation, increasing value to potential investors. Achieved year-over-year unit revenue increases greater than industry and increased Denver market share.
- Succeeded in attracting multiple bids for company. Upon exit from bankruptcy, led evaluation of pricing, revenue management, and reporting systems based on needs of new integrated airline.
————————————————————-
Thomas F. Bacon
Page Two
MESA AIR GROUP, Phoenix, Arizona 2007 – 2008
A $1.5 billion regional airline operating on behalf of major airline brands. Independent operations include a Hawaiian start-up.
Vice President, Marketing, Planning and Financial Analysis
Oversaw revenue management and operational and financial analysis.
- Led profitability initiatives and cost containment during period of operational challenges. Analyzed potential acquisitions, divestitures, and partnerships in anticipation of industry restructuring.
HABITAT FOR HUMANITY; AMERICAN RED CROSS (ARC),Fort Worth, Texas 2004 – 2006
Major branches of national charity organizations, each serving multiple counties. Habitat chapter is model for country.
Board Member; Member, Finance Committee
- Joined two community boards. After financial crisis, led turnaround of ARC branch. Grew Habitat branch.
BOMBARDIER AIRCRAFT SERVICES,Richardson, Texas 2004 – 2005
A $1 billion subsidiary of Bombardier Aerospace that owns and operates Flexjet, a luxury private jet service.
Vice President, Marketing and Strategy
Launched initiatives in strategy, advertising, internet marketing, pricing, and partnerships.
- Hired by division President to restructure Flexjet after nine years of losses. Led division to first profit with inventory reduction, improved unit revenue, and reduced cost-of-sales. Positioned division for sale.
AMERICAN AIRLINES, Dallas-Fort Worth, Texas
At the time, the world’s largest airline, then operating over 800 aircraft and serving 149 cities across the world.
Senior Vice President, Marketing and Planning, American Eagle Airlines 1998-2003
Directed strategy and revenue functions for $1.5 billion affiliate.
- Appointed along with new division President to grow division. Oversaw acquisition and deployment of 150 new jets. Led initiatives in market selection, scheduling, revenue management, and pricing. Improved profitability from $50 million annual losses to a $75 million profit.
Vice President, Financial Analysis, American Airlines 1995-1998
Provided strategic analysis for President and CFO.
- Promoted by President to lead initiatives relating to alliance partners, labor negotiations, fleet planning and market/network evaluation. Developed worldwide alliance. Negotiated $3 billion aircraft order.
Managing Director, Profitability Analysis, American Airlines 1988-1995
Oversaw ongoing evaluation of American’s network and product line, including new market planning.
- Initially hired by CFO to plan for international growth. Developed European and South American plan 1988-1992. During economic downturn, spearheaded corporate review of domestic products and marketing alternatives, resulting in a major restructuring and an over $100 million profit improvement.
Finance Director/Controller, SABRE Travel Information Network 1983-1988
Led financial analysis, reporting and financial operations for travel distribution division.
- Charged with setting up Finance department for new $400 million business unit. Established financial planning, contract administration and collections procedures. Increased profitability from breakeven to over $100 million annually.
Manager, Finance, American Airlines 1980-1983
Held various Finance positions over a three-year period.
Education
MBA, Harvard Business School, Boston, Massachusetts, 1980
BA, Economics, Oberlin College, Oberlin, Ohio, 1976