International Airlines Business Model Canvas

International Airlines Group (IAG) relies heavily on technology partnerships. Collaborations with companies like Microsoft are key for digital advancements. These partnerships drive innovation in customer service, data analytics, and IT infrastructure. IAGi Accelerator 2025, opened applications in March 2025, focuses on AI and automation. First launched as Hangar 51 in 2016.

IAG strategically teams up with diverse entities to bolster its business model.

Partnerships are crucial for expanding global reach, streamlining operations, and achieving sustainability goals. These include alliances with Oneworld, tech firms like Microsoft, and fuel suppliers such as Twelve and Phillips 66.

Financial institutions provide vital capital for fleet upgrades and expansion, contributing to IAG's robust financial health.

Customer service is crucial for IAG to draw in and keep passengers. It involves online booking, in-flight entertainment, and loyalty programs. Excellent service builds brand loyalty and encourages repeat business. IAG prioritizes customer choice by expanding its network and improving services. In 2024, IAG reported a customer satisfaction score of 80% across its airlines.

IAG's key activities encompass flight operations, fleet management, customer service, network development, and cost control. Operating flights includes managing schedules and ensuring safety. Fleet decisions drive its ability to meet customer needs. In 2024, IAG's focus on cost efficiency was very important.

IAG's diverse brand portfolio, featuring British Airways, Iberia, and Aer Lingus, is a key resource. These brands foster customer loyalty through distinct identities and target markets. In 2024, British Airways carried roughly 40 million passengers. IAG aims to expand its network and enhance the customer experience to maintain brand preference.

Key Resources for IAG include a modern aircraft fleet, and a strategic route network. IAG's brands like British Airways, foster customer loyalty. Human capital, including pilots and crew, is crucial for operational efficiency.

IAG Loyalty, part of International Airlines Group (IAG), provides rewards to customers. The program allows earning points and accessing perks. This boosts loyalty and repeat business. IAG's structure includes IAG Cargo and IAG Loyalty. In 2024, customer loyalty programs saw increased engagement.

IAG's value proposition focuses on global reach, offering extensive route networks and partnerships for diverse travel options. Its strong brand reputation and loyalty programs enhance customer appeal. The airline group provides flexible travel options and sustainable choices, attracting a wide customer base. In 2023, passenger numbers reached 101.7 million.

IAG leverages digital platforms like its website and app for customer interaction, offering information, support, and personalized deals. This digital strategy improves customer experience and strengthens relationships. By 2024, IAG's online bookings grew by 15%, showing digital engagement's impact. IAG's focus on digital enhancements simplifies booking and shipment management online.

IAG tailors travel using data to enhance customer service. Loyalty programs reward frequent flyers, boosting brand loyalty, with digital platforms for interaction. Customer support and feedback loops help improve services; in 2024, customer satisfaction rose due to these efforts.

IAG's call centers offer phone support and booking assistance. Agents handle inquiries and resolve issues for travelers. Digital advancements prioritize online booking and management. IAG invested €37 million in customer experience in 2023. This includes call center improvements.

IAG's channels include direct online booking, travel agencies, and call centers for customer reach. Airport ticket counters also provide in-person support, aiding in bookings and travel changes efficiently. The mobile app boosts customer interaction with mobile check-in, boarding, and updates. In 2024, direct channels accounted for 60% of bookings.

Premium passengers seek superior travel experiences. They prioritize comfort and personalized service, often choosing first or business class. British Airways increased premium capacity by consolidating Barbados services at London Heathrow. The airline's focus on premium services reflects a strategy to attract high-value customers. In 2024, premium travel spending is projected to increase by 10% globally.

Budget travelers prioritize low fares. Vueling targets this segment effectively, especially from its Barcelona hub, which handled over 26.5M passengers in 2023. The strategy focuses on competitive pricing, competing with other low-cost carriers.

Aircraft maintenance is a significant cost for IAG, encompassing upkeep and repairs to ensure flight safety and reliability. Delays in new aircraft deliveries and engine maintenance issues have heavily impacted schedules in 2024 and 2025. For instance, in 2023, IAG spent €3.7 billion on technical and operational expenses, including maintenance. The reduced aircraft availability due to engine problems on the 787 fleet further strains these costs.

Aircraft maintenance is a critical cost, with 2023 expenses reaching €3.7 billion. Airport fees, crucial for operations, vary based on airport size. Marketing and distribution, vital for reach, accounted for 8-12% of revenue in 2024.

Ancillary services, like baggage fees and seat upgrades, significantly boost IAG's revenue. In 2023, ancillary revenue reached €3.4 billion, a 21.9% increase. IAG aims to enhance its customer offerings to increase this revenue stream. This strategy helps make its brands more appealing.

IAG's revenue streams include passenger tickets, cargo services, and ancillary services. Passenger revenue in 2024 was €28.3 billion, cargo brought in €1.234 million, and ancillary revenue reached €3.4 billion in 2023. Loyalty programs, such as Avios, generated £1.276 billion in revenue in H1 2024.