The role of the LCC in driving

innovation in the aviation industry

CAPA Australia Pacific Aviation and Corporate Travel

Summit 2018

Merren McArthur, CEO, Tigerair Australia

2 August 2018

Diversity – one side of the debate

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“Of course it has to be led by a man because [being the CEO of an airline] is a very challenging position.”

Akbar Al Baker, CEO of Qatar Airways

Diversity – the other side of the debate

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“We’ve seen what can be accomplished when we use 50% of our human capacity…if you visualise what 100% can do, you’ll join me as an unbridled optimist about America’s future.”

Warren Buffett, Chairman and CEO of Berkshire Hathaway

Diversity in aviation

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0

5

10

15

20

25

CEO CFO HR Director COO

Aviation Other industriesSource: www.bloomberg.com/news/articles/2018-06-04/boys-club-on-parade-as-women-struggle-for-top-airline-positions

3%

12%

8%

19%

9%

23%

3%

9%

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Diversity improves business performance

Diversity management helps to… Rationale

…win the war for talent• A strong focus on women and ethnic minorities increases the sourcing talent pool, a particular issue

in Europe. In a 2012 survey, 40% of companies said skill shortages were the top reason for vacancies in entry-level jobs

…strengthen customer orientation• Women and minority groups are key consumer decision makers: for example, women make 80% of

consumer purchases in the UK • Gay men and women have average household incomes that are almost 80% higher than average

…increase employee satisfaction • Diversity increases employee satisfaction and reduces conflicts between groups, improving collaboration and loyalty

…improve decision making• Diversity fosters innovation and creativity through a greater variety of problem-solving approaches,

perspectives, and ideas. Academic research has shown that diverse groups often outperform experts.

…enhance the company's image • Social responsibility is becoming increasingly important • Many countries have legal requirements for diversity (e.g. UK Equality Act 2010)

Source: McKinsey & Company - Diversity Matters, November 2014

Diversity has a positive impact on many key aspects of organisational performance

Pacific Southwest Airlines 1949

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The global growth of LCCs

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LCC product offerings

The digital revolution

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LEGACY PLAYERS

• Those that are bound by legacy systems, are slow to adapt to digital processes and are stuck in traditional forms of customer engagement

ADOPTERS• Those that have

recognised and are responding to changing customer expectations

TECH DISRUPTORS

• Those that are introducing products and services before consumers know that they need or want them

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Tigerair’s digital journey

Booking Online Trip Reminder Self-Service Schedule Change Check in Boarding Inflight

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Questions