Transportation and the United States Economy

Passenger transportation is a part of daily life and generates substantial revenues. Growing competition is encouraging new solutions in this arena to which established companies must adapt. Yet the industry also faces significant challenges. Public transport companies must learn to operate more efficiently. The vision for the public transport agencies of the future is a decrease in operating costs and improvement in customer satisfaction.

Using distinctive analyses and purpose-built modeling tools, we help our clients develop a robust, comprehensive fact base for sound strategic decision making. We design individually tailored programs to improve assets and resources, identify technical solutions, and empower teams to transform entrenched processes. We help clients identify best practices, set ambitious targets, design effective progress-monitoring systems, and engage their people in performance dialogues to cultivate a best-in-class mind-set that endures long after a program ends.

We work systematically to achieve best-practice solutions through efforts such as cost restructuring, pricing, and distribution optimization. By leveraging economies of scale, horizontal integration, and specialization, we can support our clients in achieving even greater efficiency gains. By maximizing both fare and non-fare revenue we help clients achieve commercial excellence. We apply cutting-edge sales and marketing techniques to support our clients in understanding customers, developing pricing strategies to optimize yield, and brainstorming non-fare revenue strategies, such as retail shops in airports and real-estate developments near railway stations.

Enterprise Risk Management

The successful implementation of lean management principles in maintenance, ground, and other service areas can result in sustainable productivity gains for many airlines. For example, turnaround times can be shortened by up to twenty-five percent. Airlines that opt for a hub-and-spoke system can adjust flight plans and thereby improve flight capacity utilization and reliability. As international alliances and partnerships increase, there comes a need to reconfigure networks and adjust the fleet mix. Our practice is skilled in addressing these issues in both the air passenger and air freight industries. We apply our detailed knowledge of lean process improvement and business strategy alignment.

Our detailed understanding of individual asset classes and their unique maintenance and operations enables us to understand the full cost of ownership at the outset of a project. During the development phase of a project, we help clients balance short- and long-term considerations to minimize maintenance costs once an asset is in operation. We help clients balance technical and commercial design considerations. At the same time, we support clients in building capabilities so that project leaders have the fact base and skill set to make the appropriate trade-offs going forward.

Our Strategy Analytics Center helps leaders make sense of internal and external data on corporate performance, macroeconomic changes, and global and local trends so that executives can develop more robust strategies for creating value, identifying business opportunities, and pursuing growth. We work closely with clients to embed our tools, analytics and expertise, and provide on-going support to help them build the capabilities they need to revolutionize how decisions are made.

 

 
 Mr. David Smith

Mr. David Smith

 Mr. Stephen Nelson

Mr. Stephen Nelson

Related Practices

We help governments and public-sector organizations design and implement large-scale strategies that promote economic development and inclusive growth.

Learn more about key policies guiding our research