Flybaboo's colors
Airline Flybaboo is planning to grow its business based on Geneva's Cointrin Airport and serving Lugano, Nice, Prague, Venice, Florence, Valencia, St Tropez, Ibiza and Olbia. CEO Julian Cook talks to Geneva Lunch.
The airline industry has gone through a decade of painful change. But that has not stopped Geneva’s Flybaboo from becoming a successful niche operator in Europe, with flights to nine destinations. Flybaboo has survived some tough moments and is now ready to move to the next stage in its development, says Julian Cook, CEO.
The airline recently ordered two new aircraft, and has taken options on an additional four. It has been operating on just two 50-seater craft since it was set up in 2003 by Cook, a Geneva entrepreneur.
Getting to this point has not been easy. Price competition is fierce, and there is excess capacity on many routes.
"We have had growing pains," says Cook. "2006 was a transition year. Now we want to develop. Over the next four years we want to achieve 10-12% of market share in Geneva."
Flybaboo now has from 1.5-2% of market share. Cointrin Airport in Geneva, its base, serves seven million passengers annually, and Cook is looking for about one million.
A breath of Swiss air
Cook is straightforward about his strategy. First, Flybaboo will continue to differentiate itself. It does this by offering a touch of luxury as well as bargain fares.
Second, he has a realistic business plan that recognizes the limitations of the market and of Geneva as a base. Third, Cook has both great contacts and plenty of charisma.
Tofu the mascot does his bit in marketing Flybaboo
Then there's Tofu. When I arrived at Flybaboo's offices, Tofu greeted me and kindly lent me his chewed tennis ball. Tofu is Cook's black Labrador. He is the airline mascot and pens a column for its magazine, Baboo Time, signed with his paw mark.
Tofu and pal
The column contributes to Flybaboo’s image as a different airline that offers a more enjoyable way to travel. That image is enhanced by its slogan, “a breath of Swiss air” and publicity material hinting at Audrey Hepburn-style glamour and St Tropez-style fun.
The touch-of-luxury concept does not seem to extend to the Flybaboo offices, though. When Cook arrived for our meeting we toured the office space looking for somewhere private to talk. I don’t know whether he has an office, but we ended up in the uniform store room.
We offer the human touch
There, Cook explained how Flybaboo sells itself. "We offer the human touch. I hate it when Flybaboo is described as low-cost. We are price competitive - all airlines have to be price competitive. Most of them are also impersonal. They treat passengers like numbers. Our objective is to bring back the human element, and treat people as clients, not numbers. We aim to give people a good flight experience. The difference is in the details. We fly the same planes. But we try to offer the small touches that make people feel at home."
Onboard service
Although Cook does not like the low-cost label, Flybaboo does offer low fares, starting at around SFr49 one way. The price of the ticket does not affect the service. Clients still benefit from gourmet snacks, drinks and the occasional surprise.
Cook’s policy is to partner with luxury brands, including gourmet food company Label One, Bulgari and Moet & Chandon. On one occasion, Flybaboo held a competition to win a watch on board a flight. Passengers are likely to be offered foie gras canapes, gourmet focaccia, wines to taste, or apples fresh from the farm.
The airline also offers abonnements for frequent travelers, and special last-minute deals for over-65s and those aged 12 to 25.
The business plan had its beginnings in 2003, when Swiss cut its Geneva-Lugano route. Cook saw an opportunity and created Flybaboo, backed by several high-net-worth individuals.
A new round of funding
In late 2005, its attempts to fly the Geneva-Zurich route foundered because of insufficient demand. That did not hold back expansion plans, and in October 2006 SFr12million was raised in a new round of funding.
Ready for takeoff
Cook is open about the challenges of a culture of low-cost flying. The Geneva-Prague route illustrates the point, he says. This route is serviced by three operators, Flybaboo, Easyjet and Swiss, creating too much capacity and unrealistically low prices.
"This is the kind of thing that can kill the market," he says. “In the airline industry you see stupidities that you wouldn’t see elsewhere. Now anyone who can buy a bus ticket can buy a plane ticket. Other industries don't sell below cost, but airlines do. You don’t see hotels doing it. People are willing to spend more on a hotel than on a flight." A code-share agreement on the Prague route may be the solution.
Tofu and boss
He also believes that being based in Geneva could limit Flybaboo’s growth. "It's a small market, although it does have high-income earners and a big catchment area," he says. "But it's becoming quite crowded and Easyjet has built a strong position."
Cook doesn't rule out a second base, but says it would be for the much longer term. Also longer term, Cook and his team are considering buying jets so that Flybaboo can serve more distant destinations. And they are watching the demand for private jets, something that could be developed in the future. Other services on offer include plane rental and cargo shipping.
Flybaboo is not a dinosaur of the airline industry
For the moment, the focus is on the four-year plan and capturing a larger share of the Geneva short-haul market. That means wooing customers with the Flybaboo experience.
Foie gras on route to Florence? Smoked salmon over St Tropez? The customers will choose.