Air Ambulance Co’s: Competitive Paranoia or Calm Confidence?

The Air Ambulance business is one of the most competitive within the repatriation world.  Many times fierce competition drives desperate measures like selling AA flights at below cost, using sub-standard medical crews and/or contractors etc.  These tactics may be a perfect recipe for winning short-term business but can’t be sustained in the long run. 

What drives it?  Well, lease a jet, hire pilots, medical crews etc.  and you will quickly understand the economic pressures of having stationary assets.   Clearly that doesn’t make the tactics right, it simply points out some of the drivers.  So Mr. Newco, don’t be fooled by short term gains.  Successful positioning in the repatriation market is rarely achieved on price alone. 

There are distinct differences in the management style of many air ambulance operators, but amongst legacy operators I believe there is one commonality; they have a ‘calm confidence.’   These operators know who their target market is, what drives their market’s buying criteria, why they win or lose business and what it takes to get repeat business.  When I talk to new operators they often seem consumed by competitive paranoia.  Despite the success of legacy operators, I still see elements of this in many of their operations.  It’s not all consuming, but putting it nicely, they have a heightened sense of awareness.   Again, I can certainly understand some of the factors that drive competitive paranoia, but you have to look at why successful operators are successful. 

Competition is a great motivator.  It keeps legacy operators on their toes.  So……  be warned Mr. Legacy.  If your confidence become arrogance, the competition will eat you.  Newco’s: Before entering this business really, really understand the competitive dynamics and what’s driving the buyers of your services.  I have seen too many paramedics/nurses who understand the air ambulance industry but do not understand business.  Entering this market is not difficult.  Staying in this market is another matter.