Compass could have really aced their competitors if they had simply converted zone A of the A300 to a 24 seat first class arrangement as depicted in this photo. It would have cost them little and at fares 33% cheaper than their competitors' business class they would have won many customers from both the business and full fare economy classes of Ansett and Australian. Though more than a third of Compass passengers were in fact business travellers, they were never catered for till the final weeks of the airline's life when a pseudo Corporate Class was launched to seat them in an area on their own. Though we always enjoyed our flights with Compass, we did find it disconcerting at times to be placed amongst young children (who on their first flight are either airsick or run amok), teenagers looking as if they are going to the beach or your best friend's grandmother who wants to tell you her life story. A proper business class, with normal economy class catering would have overcome this and taken much high yield business away from Compass's rivals. (Airbus)

Compass Collapse Analysis

Compass Failure Highlights Need for New Entrants to Formulate a Viable Business Plan

Just 385 days after it was born, Compass Airlines died.

A victim of a business plan that was from the start driven largely by how big the airline wanted to be, rather than by how profitable. In the end, after losing money in almost every week of its existence, Compass had simply exhausted not only its cash reserves but also its goodwill amongst its primary suppliers who realised that the writing was well and truly on the wall.

Frustrated by months of being fobbed off and having to haggle for constantly overdue payments, the CAA and the aircraft lessors began a series of actions that culminated in the closure of the airline on December 20, 1991, just three weeks after the airline’s first birthday.

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