February 1990 (Mediterranean Airlines board of directors annual analysis).
CEO (Matthew Phillips) 1990 AGM Opening Statement"Wow, it's been a crazy year. Wow. We still haven't advanced in to Spain, although I swear if we haven't by this time next year someone's gonna get shot. Yet just because we haven't advanced into Spain certainly doesn't mean we haven't expanded. Just last month we opened fourteen new long haul destinations from Paris using the 767, these routes are already proving very profitable. I want to make sure Mediterranean Airlines is fully established in Italy and the South of France before we hit Spain, as it happens we carried more Italians in 1989 than any other airline. February profits are up 140% on this time last year, thanks in part to the vast reduction in maintenance costs. In fact if we continue our low cost maintenance programme for the rest of the year 1990 profits are set to be 100% higher than 1989, meaning we can enter the new decade on a high."
Mediterranean Re-BrandingMediterranean Airlines made the decision to re-brand the airline in early 1989, following on from the success of the previous branding decision in 1986. The re-branding features new crew uniforms, livery and logo courtesy of
Alphawing. The airline is blasting into the new decade with a bang!
New Logo
New A320 Livery
New Boeing 767 Livery
New Cabin and Airport Staff Uniforms
Lower Maintenance CostsMatthew Phillips set a target to half 1988 maintenance costs by the new decade, this was a monumental challenge yet the executive board managed to exceed the target. By February this year maintenance costs were a quarter of those in 1988, this is despite the airline's huge fleet expansion.
"Maintenance is Mediterranean Airlines' largest single expenditure, currently around four times the amount we spend on fuel, so it was a key target for me to keep these costs to a minimum. We have managed to exceed our cost targets by lowering the number of scheduled checks each aircraft receives, by buying spare parts in bulk direct from the supplier and by replacing aging aircraft with newer models. The airline has managed to slash maintenance expenditure 75% in a very short period of time, in the process boosting company profits 140%. Staff will be rewarded with a significant bonus this year as well as further pay rises." - Matthew Phillips
New Boeing 767 RoutesIn October last year Mediterranean placed an order for fourteen 767 aircraft, with options for a further four. With all options finalised this now takes Mediterranean Airlines 767 fleet to twenty. The new aircraft are stationed at CDG and ORY and operate selected routes to Asia and North America, two rapidly growing markets.
"The Mediterranean model is simple but effective. We fly international passengers from their home countries in America and Asia to Paris. There they can get a connecting flight to many other European cities including Amsterdam, Rome, Madrid, London, Moscow etc. as well as all of our 36 Mediterranean coast destinations. I truly believe in the large hub to hub travel concept and so I hope to increase our Paris long haul destinations even further in the coming years." - Matthew Phillips
€1 faresThis year's €1 fare destination is Halifax in Nova Scotia, Canada.
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Nevertheless, this is my shot at it.
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