Panama City\u2019s location gives Copa a few unique competitive advantages that the airline has had the continuous wherewithal to leverage. For one, the city is located between many destinations that, on their own, don\u2019t have sufficient traveler demand to justify point-to-point service. Consequently, Copa has positioned itself as an \u201caggregator,\u201d consolidating traffic and routing flights that connect these locations through its Panama City hub. Good weather year-round and a well-developed airport also help: the airline has a consistent on-time performance of 85-92% and a completion rate of 99.4-99.6%, statistics almost unheard-of among other carriers. Copa is so committed to serving its particular region that at the International Society of Transport Aircraft Trading (ISTAT) Latin America Forum Copa\u2019s CEO said that despite the economic troubles plaguing many countries in South America, the airline has no intention of starting to serve Europe.<\/p>\n
Fleet planning<\/u><\/em><\/p>\n No airline can succeed without a well-structured fleet. Given Copa\u2019s business model\u2019s focus on being the \u201cconnector\u201d airline through its Panama City hub, the airline has focused on operating only two models of aircraft: Boeing 737 (-700 and -800) and Embraer 190. The distance these two aircraft can fly as well as their fuel consumption rates are well-matched with the destinations served by Copa, as well as with its financial objectives, which is why the airline has said \u201cno\u201d to other, \u201cshinier,\u201d aircraft types over the years. The management knows the needs of its customers and is meeting them in the most efficient manner possible. At the same ISTAT meeting mentioned above, the airline reaffirmed that it has no plans to expand its fleet to include larger aircraft. It\u2019s worth noting, also, that limited fleet variety also helps the company control its maintenance costs, which are a large part of an airline\u2019s expense structure.<\/p>\n Internal and external relationships<\/u><\/em><\/p>\n In addition to the CEO\u2019s 25-year tenure at the company, Copa\u2019s other senior management team members have also been with the airline for an average of a decade and a half. As a result, the team operates on a basis of friendship and trust and consistently works together to achieve the airline\u2019s business objectives. One of these objectives is to maintain ongoing communications with Copa\u2019s broader employee base. Given the airline\u2019s focus on being cost-disciplined, employees know to avoid unnecessary complexity in their day-to-day operations and focus on executing the well-explained \u201cgame plan\u201d as a cohesive unit. The team functions so well that Copa has been named twice as one of the top 10 best employers in Latin America.<\/p>\n In terms of external working relationships, Copa interacts closely with numerous partners and is extremely synergy-focused in its approach. For instance, by being one of the largest employers in Panama, with almost 6,000 local staff, Copa has a close relationship with the government\u2019s country, which helps it navigate political and economic hurdles when they arise. Additionally, the airline is highly reliant on Panama City\u2019s airport; together, the airport and the airline have worked to enlarge the existing infrastructure, thus helping Copa execute its hub-and-spoke strategy. To ensure continuing alignment, Copa has a representative on the airport\u2019s corporation board. Lastly, Copa is an integral member of the Star Alliance. Previously, Copa was 49% owned by Continental airlines. Today, although United (which bought Continental) no longer has any ownership stake in Copa, the two airlines continue to share branding and marketing activities, benefiting both companies. To this day, when viewed side-by-side, Copa\u2019s and United\u2019s logos are exceptionally similar.<\/p>\n Overall,\u00a0Copa\u2019s strategy of sticking closely to its business model and objectives is executed through careful operational planning and communication with internal and external partners. I am quite excited to be flying with Copa via Panama City on my way down to my FIELD 2 project in Buenos Aires.<\/p>\n <\/p>\n Sources:<\/p>\n <\/p>\n Bell, Michael and Thomas, John. Airline Business.<\/em> Nov. 2015, p. 48-49<\/p>\n Copa Airlines Website (http:\/\/www.copaair.com\/sites\/us\/en\/pages\/homepage.aspx)<\/p>\n Karp, Aaron. Air Transport World. <\/em>Nov.2014, Vol. 51 Issue 11, p30-33<\/p>\n Unnikrishnan,\u00a0Madhu. Air Transport World. Dec. 2015. Online Blog:\u00a0http:\/\/atwonline.com\/airframes\/panama-s-copa-pulls-back-fleet-expansion-weak-economy<\/p>\n","protected":false},"excerpt":{"rendered":" Saying "no" 80% of the time. Or, an airline's guide to weathering regional economic challenges through a strict alignment of strategy and execution.<\/p>\n","protected":false},"author":1150,"featured_media":5530,"comment_status":"open","ping_status":"closed","template":"","categories":[107,889,138],"class_list":["post-5509","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-airline","category-aviation","category-travel"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"\n![\"boeing\"](\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/boeing-300x182.jpg\")
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