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Interjet 2021, Focus on the Future

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18 September, 2018

Interjet Airlines has announced its new, three-year growth plan providing for significant investment in several areas of its business to ensure the airline continues to deliver future growth and profitability - INTERJET 2021, FOCUS ON THE FUTURE.

Through August 2018, Interjet has experienced positive results fueled by a 38.7 percent growth in our international business, a robust 12.6 percent increase in passenger count, while our domestic business increased 5.6 percent. But to continue to grow our business and profitability, we need to always be looking at new and better ways to do business. To that end, we are embarking on a strategic initiative that includes five key pillars: FOCUS ON THE COMPANY, an internal review of what we do, how we do it, how we’re doing and what we can do better. A FOCUS ON THE PRODUCT, a review of our product offering with significant upgrades, and a FOCUS ON THE FLEET, a re-equipment of our fleet and reconditioning of existing aircraft to ensure future market needs are met. We will also make investments in several strategic areas of the business as we FOCUS ON THE BRAND and FOCUS ON THE CUSTOMER.

FOCUS ON THE COMPANY
We have spent the last few months focusing on the company, meeting with many of the great employees that make up this airline as well as our commercial and travel partners in Mexico, the U.S., Canada, Central and South America to review what we’re doing right and more importantly, what we can do better. We have commissioned research to better understand customers and prospects and their needs as it relates to air travel. 

Two things have stood out from these conversations – the airline industry has never been as competitive as it is today, while at the same time, there has never been a better opportunity for Interjet to succeed and prosper. We can do this because Interjet understands what travelers are looking for in an airline partner - not just a lower fare but the added features and benefits Interjet provides such as business class legroom with every seat, bags fly free, a guaranteed seat on the flight they book, free drinks, snacks and beverages, senior discounts and even female only lavatories, all delivered with an exceptional flying experience. These are true differentiators between Interjet and other airlines and are the nucleus for what we call our ‘Value Proposition’. This has resulted in Interjet becoming one of the fastest growing airlines on the continent with more than 87 million passengers having experienced our unique brand of unmatched service everywhere we fly. However, many opportunities still exist in the market, and we are excited about how our business is shaping up for the rest of 2018. Moving forward, we are forecasting significant growth in our international business and good growth domestically.

FOCUS ON THE PRODUCT
Lately, the airline industry seems to be going in a different direction. Airlines have been unbundling services that traditionally came with the price of a ticket such as checking bags, seat selection, free drinks and snacks onboard, even the ability to pay by credit card. At the same time, more rows of seats are being added to planes reducing seat width and legroom between seats. Airlines are saying these new basic fares give travelers the ability to pay for what they use. The reality is, passengers more and more are resenting these charges still preferring simple, all-inclusive pricing.

Interjet will continue to offer the business and leisure traveler the all-inclusive pricing they are demanding and deserve, taking us in a different direction than most of the airline industry. As such, we will be providing enhanced levels of service that – 

·    Truly differentiate Interjet from the competition

·    Simplify Interjet’s fare structure making it easier for people to understand what they get for what they pay

·    Change the narrative for how people should consider choosing an airline when flying between Mexico, the U.S., Canada, Central and South America.

FOCUS ON THE FLEET

Focusing on our fleet was also a critical element to successfully executing our plan. Today, we operate a fleet of 85 aircraft including 47 Airbus A320s, three Airbus A320neos, six Airbus A321s, seven A321neos and 22 Superjet 100s. While this fleet has served us well, as our international business continues to grow, we need to be sure we have enough of the right type of aircraft to sustain this growth and meet the increasing demands of international airports such as Mexico City with reduced operating windows and available slot times. On top of an existing order of 35 new aircraft A320neos, Interjet will be adding 20 more A320neos to be delivered over the next five years. These new aircraft will increase overall available seat capacity by more than 3.6 million.

At the same time, we will be phasing out some of our Sukhoi Superjet 100 fleet with the opportunity for delivery of next-generation Superjet 100 aircraft for use in markets where these aircraft make operational and economic sense. The airline will also be installing a Superjet 100 flight simulator in their Toluca Training Center and have quick access to an enhanced spare parts inventory in Mexico City.

FOCUS ON THE BRAND
Focusing on our brand is another major pillar in our new strategic plan for future growth and profitability. As Interjet does not have negative perceptions to overcome, the opportunity exists for us to continue to create positive attitudes with the market which requires building our brand identity while raising overall awareness. To start building this awareness in Mexico, the U.S., and Canada, we will be undertaking a major marketing communications program that will include advertising, public relations, social media, and travel partner programs.

FOCUS ON THE CUSTOMER
By committing ourselves to focus on what our customers want and need, and then developing the products and services to fulfill these, we can ensure our short and long-term success. To that end, we will continue to source and announce new initiatives that are customer-centric and designed to ensure we stay ahead of the competition. Just this past month, we announced four interline agreements with Lufthansa, Japan Airlines, EVA Air and Emirates in addition to existing agreements with Iberia, British Airways, American Airlines, LATAM, Alitalia, ANA, and Hainan Airlines. Through these agreements, we can offer our customers the convenience of purchasing a single ticket for flights on either airline, checking bags at origin to their destination, and easy connections at the airports served by these carriers with greater connectivity to more of the world.

As a result, we’ve been earning our share of industry awards as well. Last year, Interjet was named by TripAdvisor®, the world's largest travel site, as its 2017 Travelers' Choice winner for best airline in Mexico. The travel leader's highest honor focuses on the number of quality reviews and ratings submitted by the website's 390 million unique monthly visitors. Just recently, Interjet was recently honored with Skytrax’s World Airline Award as the ‘Best Airline in its Segment in Mexico and Best Cabin Crew in Mexico.

All of us at Interjet are very excited about this next chapter in the future of our company. From our humble beginning flying just three aircraft to four destinations almost 13 years ago, Interjet has expanded significantly to become one of the fastest growing airlines on the continent and a provider of employment and a key driver of the local economies we serve.

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