Airline & Airport Operations Module 

 

 

Airline & Airport Operations Module

Select an airline(I chose Air Arabia) based in the Middle East with a specific business model i.e. Full Service Network Carrier or a Low Cost Carrier (LCC).  In view
of the aforementioned, you are required to analyze the operations and performance of this airline and ensure the following deliverables are met in the report:
1. Identify the factors within the chosen airline’s business environment that most affect its development during the past and possibly within the next decade.
Also identify what plans or actions this airline can adopt to overcome uncertain times like we had in the last decade and factors influencing those.
2. Those factors require you to include, but not limited to the following, by using tools such as the 4Ps, a PESTE analysis, the use of Porter Five Forces model
and also the SWOT analysis. It is needed to identify competitive differentiation and positioning of the airline and your recommended steps towards strategic and
operational improvement, if so needed.
a. Marketing mixb. Identifying and serving the ‘customer’c. Market segmentation d. Business environment – internal and externale. Business and marketing Strategyf. Airline product and differentiationg. Brand managementh. Pricing and revenue managementi. Airline analysis and life cyclej. Financial indicatorsk. Distribution strategy and channelsl. Relationship marketing and promotion
3. By evaluating performance of this airline, generate a report that lists down the business and marketing strategies that made this airline superior or on the
contrary, lagging in the industry. It is required that you identify the airline’s marketing mix to do so – which is included in the list above.
4. Focus on the product mix that makes the Airlines improve its load factors and how well it handles its revenues and profits. In other words, draw conclusions of
what each airline’s best practice marketing strategies are and how these contribute to operating margins – particularly in view of other major players in the industry
and in view of the ever increasing competitive environment.
5. As a supplement to above, assess how well the airline has performed financially during the past 5 years, by contrasting yield, revenues (net profit margins)
and passenger/cargo loads. Has the airline adopted the best routing network, convenient schedules for passenger itineraries, fleet planning & assignment, standard
business practices and a successful long term strategy? If you believe that the airline needs to improve in any of the aforementioned areas, then make appropriate
recommendations on actions/improvements that the airline could adopt.
6. You should address issues like increased competition, impact of regulations and relevant global issues. Also, the effects over financial performance, ticket
fares, cost control, profits and yield management. Additional marks will be awarded for proper interpretation of financial data analysed and not just attaching to
report.
7. Additionally, you would highlight the components of the airport where your airline is based and comment on the airport – airline relationship. Also, whether
the association is mutually beneficial and how this participates in the airline’s overall business and marketing strategy.

 

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