リージョンフライは、専門職や富裕層向けに最上級のサービスとアメニティを提供している小さな民間航空会社である。1971年の事業開始以来、30年の間財務上の成功を収めてきた。しかし、ここ数年は業界のダイナミクスと一般市場の状況によって同社は経済的に低迷期を迎えていた。その結果、2013年末により大手の航空会社に買収されたが新しい経営陣の元でも以前のような収益性を取り戻すことができないでいた。今は2015年の1月であり、リージョンフライの新しいオーナーたちは最終的にはこの航空会社の命運を決めるかもしれない重要な決断を迫られている。 RegionFly is a small, private airline specializing in ultra-premium services. Founded shortly after the "Golden Age of airline travel," RegionFly's financial performance had been strong for several decades. More recently, however, the results have taken a downward trend, due in part to the impact of the Great Recession on the entire airline industry. Not only were premium service providers affected more significantly, but the recent wave of mergers and acquisitions involving large airlines also leveraged new economies of scale, thereby reducing costs and increasing the competitive pressure on air travel prices. As a result of the deterioration in their financial performance, RegionFly was recently acquired by a larger provider, and several top managers were replaced. The new management team, supported by an external consulting firm, introduced a series of aggressive cost-cutting measures that resulted in a downsizing of the workforce, and impacted some distinctive features of the services provided by RegionFly that had been historically associated with the success of the company. Additionally, top management introduced a new product profitability criterion to be used in support of strategic decisions related to the composition of the product mix offering. The application of the new criterion lead to the elimination of two of the seven routes included in RegionFly's portfolio. To the surprise of top management, however, the cost-cutting and product-cutting measures did not result in an improvement in the profitability of the company, which, in fact, deteriorated even further. As the profitability of another route falls under the threshold, management is faced with an important decision: should the product profitability criterion be enforced, thus eliminating yet another route from the portfolio? "RegionFly: Cutting Costs in the Airline Industry" provides an introduction to costs allocations, to the evaluation of product profitability, and to the impact of the methodology used to allocate fixed costs on strategic decisions, such as eliminating product lines or firm segments.