Topic > Jumpon Flyaways - 2403

Jumpon Flyaways (Jumpon) is a travel service provider that uses idle charter aircraft to offer weekend getaways at short notice and at discounted rates. The company operates exclusively with Enerjet, an established charter airline that provides transportation services for people working onsite at the Oil Sands located in Fort McMurray, Alberta, Canada. At Enerjet, planes are mainly used during the week for transportation to the workplace. With limited demand for weekend charter services to Fort McMurray, aircraft previously sat idle (jumpon, 2013). Launched in April 2013, Jumpon is capitalizing on idle assets and providing a niche travel service to a segment of the population that has the means to travel on weekends with generally last minute availability. Jumpon was originally proposed as a business unit within Enerjet. Instead, it was launched as a partner under its own corporate name, where its profits and expenses are off Enerjet's balance sheet (jumpon, 2013). While the partnership with Enerjet and its charter flight operations are a key dynamic to Jumpon's potential success or failure, this analysis will focus solely on Jumpon's market offering and will not evaluate its business model, operations, or strategy by Enerjet.2 JUMP ON FLYAWAYS MARKET OFFER Jumpon's goal is to provide “direct flights at peak times at low prices” (Jumpon, 2013). To achieve its mission, Jumpon operates flights in response to specific needs of a particular consumer demand group. Six to eight weeks before potential departure, Jumpon advertises an offer for a city at a specific time and at a pre-agreed price. Once flight bookings reach 80% of capacity, termed the “jump point”, the flight is…… mid-paper…… survival risks of market pioneers and early followers: a contingency analysis of real risks new product markets versus incrementally new ones. Journal of Marketing, pp. 15-33.Philip Kotler, KKMBMGTH, 2012. Marketing Management. 2nd edition ed. Essex: Pearson.Porter, M., 1996. What is strategy?. Harvard Business Review, November-December issue, p. 63.Statistics Canada, 2009. Going on vacation: benefits sought from leisure travel. Statistics Canada catalog component no. 11-008-X Canadian Social Trends, pp. 42-51.Statistics Canada, 2013. Table426-0018 - Canadian Resident Travel Survey, Domestic Travel, by Census Province and Metropolitan Area, Annual, sl: CANSIM (database). Teichert, TES a. I. v. W., 2008. Customer segmentation revisited: the case of the airline industry. Transport Research, Part A: Policy and Practice, 42(1), pp. 227-242.