Compass Airlines II

Compass Airlines II - Where Every Element was Sound but for the Fraud of the Chairman

  • Enright Hendy & Partners had carried out frequent traveller generation "Flight Deck" marketing assignments for Australian Airlines (now Qantas). Compass (MarkI) had utilised our services to market the Advance Purchase Ticket to the same market. Initially Compass had used over $500,000 advertising this ticket in business media, had given travel agents 20% commission to sell it and sold only $296,000 in fares. Enright Hendy & Partners took the same product, created a database of prospects and trained Compass reservations staff to implement a "we'll quote for your business and guarantee a 50% saving in company airfares" campaign. In 4 weeks, the campaign had sold over $60 million in advance sales, doubling the life of the company.
  • This success caused us to be the only consultants to be utilised by Compass "Mark II". We were retained prior to launch to design and create a frequent flyer program that would be unique. Enright Hendy & Partners did that in designing the program to return the mileage benefits to the company paying the fare, rather than the flying executive. We targeted the CFO and CEO of all Australian organisations with 5 or more employees. We also created the database and management software to integrate with the reservations system. We then trained the Compass reservations staff to market the program to corporate Australia.
  • Enright Hendy & Partners also created all trade and consumer communications to deliver the program. Refer material. The entire program, including software was created at a cost (not including printing) of less than $50,000. The software purchase and installation costs of the initial frequent flyer programs of Ansett and Australian were in excess of $1 million, and a further $1 million/annum recurrent operational expenditure, taking 6 weeks to deliver mileage updates to customers. The Compass program delivered mileage updates within 10 working days and required no additional running costs, the minimal work being done within the current resources.

Outcome:

  • The innovation and productivity Enright Hendy & Partners successfully delivered, at minimal cost, was of such a magnitude that, at the time Compass was placed in receivership, we were preparing to take over the total marketing and communications service delivery. (Refer attached reference). Sales were running at only 3% behind budget, without any unbudgeted discount pricing. The reasons the business failed are a matter of public record, and had nothing to do with the company's performance against projections.