...Aerosphere Airlines Case: Aerosphere Airlines Scott Schneider is the Chief Marketing Officer for Aerosphere Airlines, a Flemish company that hires private jets. He worries about how to maintain a marketing edge against his main competitors, Dynasty Airlines, Shark Airlines, and Ultra Airlines. Aerosphere, Dynasty and Ultra have similar business models, reflecting a higher concern for service, and Shark positions itself more as a low-price, low-cost carrier. The four companies operate from airports in Belgium and offer flights within Europe. The total size of the market for flights in private jets in Belgium is estimated at 20.000 customers. Mainly companies who choose to hire a private jet, rather than buying or leasing their own corporate jet. To figure out the current competitive position of the airlines, and to help set strategy, Schneider commissioned a customer equity study of the industry. This began with focus group interviews with customers to figure out the drivers of Value Equity, Brand Equity and Relationship Equity. Based on the focus groups, Schneider came up with the customer equity driver diagram shown in exhibit 1. The identified drivers and sub-drivers were: Drivers of Value Equity ▪ Quality of cabin service (“cabserv”) ▪ Passenger compartment comfort (“passcomp”) ▪ Price (“price”) Drivers of Brand Equity ▪ Attitude toward the airline (“aatt”) ...
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...INTRODUCTION Background in Brief Ryanair was established by the Ryan family with a staff of 25. Its first route was launched in 1985 with a 15-seat aircraft ferrying passengers between Waterford in Ireland and London. In 1986, Ryanair launched its route from Dublin to London to challenge British Airways and Aer Lingus, the two dominant airline carriers on that route, by offering fares at lower prices. With two routes in operation, Ryanair carried 82,000 passengers in its first full year of operation. By 1993 Ryanair has carried over 1 million passengers. In 1995 Ryanair overtook Aer Lingus and British Airways to become the biggest international scheduled route carrier in Europe. The Organization Today Ryanair now operates more than 1,500 flights per day from 57 bases on 1,500 low fare routes across 28 countries. It connects 178 destinations and operating a fleet of 305 new Boeing 737-800 aircraft. In 2012, Ryanair had a team of more than 8,500 employees and carried over 78 million passengers. Ryanair’s main business is to provide “low-fare-no filling” airline services. Ryanair also offers various ancillary services including in-flight sale of beverages and food, car hire services, internet-related services etc. To expend its network, Ryanair, which already owns 29.82% of Aer Lingus in 2012 announced its intention to acquire Aer Lingus by making an all cash offer of €1.30 per share for its entire share capital. Ryanair recorded a profit of €503 million in...
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...rates 6 Security Factors 6 The Threat of close substitutes and rivals 7 HIGH FIXED COSTS; 7 AIRPORTS 7 PORTER’S FIVE FORCES 9 Threat of new entrants 9 Suppliers: 9 Buyers: 9 Substitutes: 9 Competitive rivalry: 9 Section B 10 Firm Infrastructure 10 Human Resource Management 10 Technology Development 11 Procurement 12 Inbound logistics 12 Operations 12 Outbound logistics 13 Marketing and Sales 13 Service 13 Margin 14 Joint Venture 14 SECTION C 15 Ryanair Business Strategy 15 Low Fares: 15 Customer service: 15 Frequent Point-to-Point Flights on Short-Haul Routes: 15 Low Operating Costs: 15 Taking Advantage of the Internet: 16 Commitment to Safety and Quality Maintenance: 16 Enhancement of Operating Results through Ancillary Services: 16 Analysis of the airline business models 16 Ryanair’s strategy in future: 17 Focused Criteria for Growth: 17 New Aircraft-markers: 18 New design ‘standing seats’ 18 SWOT Analysis 19 Strengths 19 Weakness 19 Opportunities 19 Threats 19 BIBLIOGRAPHY 20 RYANAIR THE COMPANY The company was incorporated in 1995 and became Ryanair limited, and in 1996 it changed to a holding company for Ryanair limited. Registered no: 249885 and located in Ireland and with registered offices at: Ryanair limited Corporate Headquarters Dublin Airport Co Dublin Ireland Phone: 353-1-812-12121984 Fax: 353-1-812-1213 Ryanair is a public limited...
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...Hyderabad Metro is a rapid transit system, currently under construction, for the city of Hyderabad, India. It is being implemented entirely on PPP mode, with the state government holding a minority equity stake The Phase I of the project includes 3 lines covering a distance of around 71 km. The metro rail stretches between Nagole and Mettuguda (8 km) and between Miyapur and S. R. Nagar (12 km) are targeted to be operational by December 2014.In September 2012, the Indian government has approved Phase II which is expected to start in 2013. It includes around 80 kilometers. Hyderabad Metro Rail project has been selected as one of the top 100 strategic global infrastructure projects to be showcased at the forthcoming Global Infrastructure Leadership Forum being held in New York during February–March, 2013 Another important milestone has been crossed by the Hyderabad Metro Rail Ltd on Sunday with the casting of 1,000 segments. According to HMR managing director NVS Reddy, the precast segments will be joined together on top of the pillars to form a viaduct (flyover-like structure) on which two railway tracks (up and down lines) will be laid. The normal distance between two pillars is 31 metres (101 feet) and it will be covered by 11 segments. Each segment weighs about 35 tonnes and has a deck width of 8.8 metres (29 feet) to facilitate simultaneous movement of two trains in opposite directions. With a requirement of about 330 segments per one kilometer, the first precast 1,000...
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...Tale of Two Airlines in the Network Age This appears to be a case where wit was very shy on the scholar’s end. Professor Roger McPherson’s assumed that the information systems at the London based airport were far better than what they actually were. It appears that he was making a pure assumption that each and every time he would fly first class, that all of his worries would be lost because of the reliability and experience he has had in the past with the very same airlines. I do believe that his assumptions were realistic for this time period only because back then the power of the internet would have not prevented the Professor from boarding the plane because most airlines in this day and age, check and see digitally if all passengers have boarded the plane before taking off. Thus his investment would have paid off as he anticipated. The reality of this situation is that in the game of connection flights, one should never schedule a flight so close together from transfer times. In this situation assuming that the flights are going to land on time and not taking into consideration that the weather or an issue with the plane can delay the time can seriously hurt your chances of making a meeting the very next day in a country across the Atlantic. Given that the year was 1995 and portable technology is almost non-existent (except for the function of making a phone call) he could not receive a text message or email stating what procedures to follow, he purely used his instinct...
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...gambling.’” About 95 percent of those visitors come by car or bus. But now there’s a new show in town—the Branson Airport. The $155 million airport, which opened in May2009, is an experiment that many people are watching. The airport is generating interest from city governments and the travel industry because it’s the nation’s first commercial airport built and operated as a private, for-profit business with absolutely no government funding. As one expert said, “...unpretentious little Branson Airport could have an outsize effect it if works. It could turn what now is a mostly regional tourist spot into a national destination for tourists.” Steve Peet, the airport’s chief executive, admits that he had no idea where Branson was in 2000. But by 2004, he was convinced there was money to be made flying tourists there. He says, “If you were ever going tothink about building a private commercial airport, this would be the place to do it. How many more visitorswould come here if we made it easier and affordable for them? It seemed like an incredible opportunity.” So,using private financing, he decided to build a new commercial airport a short distance south of Branson’s popularmusic shows district. Both Peet and Jeff Bourk, executive director of the airport, continue to tackle the managerialchallenges of turning that dream into reality. Construction work on the airport terminal and the 7,140-foot runway (which can accommodate most narrow-body jets) went smoothly. Bourk believed...
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...Building Monte Carlo Simulation Models in Excel – Prof. Setu Chokshi Problem 1: MakeMeMoney Inc. MakeMeMoney Inc. has created a new gizmo. Since they are new in the market. They need to spend time to go from door-to-door to market their gizmo. There are a lot of uncertainties associated with the profitability (market size, expense and revenue). Can you create a Monte Carlo Simulation to help estimate profit and evaluate risk. Nominal Leads per Month (L) Cost Per Lead (C) Conversion Rate (R) Profit per Sale (P) Overhead per Month (H) 1500 $0.50 3.0% $50.00 $800.00 Min 1200 Max 1800 Distribution Uniform $0.20 $0.80 Uniform 1.0% 5.0% Uniform $47.00 $53.00 Uniform Problem 2: MoreRisk Inc. MoreRisk Inc. too is introducing a product in the market. Imagine that as a marketing manager, you are trying to estimate the profit that will result from the product introduction. Low Probability Units Price Cost 50% 60,000 $10 $6.00 High 50% 100,000 $9 $9.00 80,000 $8 $7.50 Average Problem 3: Capital Investment in the face of Uncertain Demand Consider an e-Commerce service for which you can charge $1 with no marginal cost. However, a server facility must be constructed, which will require $0.80 capital for each unit of monthly capacity. Sadly the new service is a fad expected to last for only one month. Demand for your one month of business is uncertain and estimated to be normal with mean = 2 million and sigma = 500,000. Planning for the average demand, you invest $1,600,000...
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...The Commercial Airline Industry | | The Commercial Airline Industry There are many inventions and advancements that have changed the way mankind lives, communicates, and functions, but few have established a fundamental turning point that has added new breadth to the way we live like the airplane did. Airplanes have allowed us to see and visit parts of the world we would have never dreamed existed. It has also been a key factor to defeating our enemies and protecting our allies overseas in wars. Now it has become a part of our day to day activities and it would difficult to picture our lives without it. The commercial airline industry is a growing industry. “In the past decade, air travel has grown by 7% per year…Scheduled airlines carried over 1.5 billion passengers last year alone”, (Stanford/Airline Industry) and because of globalization this number is just going to rise. Threat of New Entrants (High) One of the major barriers to entry in the Commercial Airline Industry is the high cost of capital. The immense amount of money it takes to enter this industry is not enticing especially with an average gross profit margin of around 3-5% across the industry. Another risk to be considered when entering this industry is the unpredictability of weather. Take Iceland’s Volcano eruption in April 2010 for instance; the volcanic ash left airlines motionless in the EU costing them $200 Million a day. When planning on entering this market it is vital to have a good cash cushion...
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...STRATEGY Ryanair’s objective is to firmly establish itself as Europe’s leading low-fares scheduled passenger airline through continued improvements and expanded offerings of its low-fares service. Ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies. The key elements of Ryanair’s strategy are: Low Fares. Ryanair’s low fares are designed to stimulate demand, particularly from fare-conscious leisure and business travelers who might otherwise have used alternative forms of transportation or would not have traveled at all. Ryanair sells seats on a one-way basis, thus eliminating minimum stay requirements from all travel on Ryanair scheduled services, regardless of fare. Ryanair sets fares on the basis of the demand for particular flights and by reference to the period remaining to the date of departure of the flight, with higher fares charged on flights with higher levels of demand for bookings made nearer to the date of departure. Ryanair’s Dublin to London (Stansted) route is its largest route in terms of passenger volume, with fares ranging from 0.99 to 199.99 (excluding government taxes and passenger service charges). Ryanair’s competitors generally do not operate a one-way pricing policy, so direct comparison is not possible, but current round-trip fares on Aer Lingus, Ryanair’s largest competitor on the LondonDublin route, for travel in September 2004 were 82.27 for economy...
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...weather and pilots doing what they are supposed to be doing. This job is not like some people say it is. It’s not easy; this job takes a lot of training and a lot of patience with the pilots. In ATC you have three positions: the first is “Clearance Delivery” is when the pilot calls the tower to request his clearance to their destination. The pilot calls clearance and he’d say the type of aircraft they are flying, were his parked at and their destination. For example: “Vieques 892 requesting clearance to Boriquen” then the controller tells the pilot: “Vieques 892 you are cleared to Boriquen via the assigned route and gives them an assigned transponder code.” The Boriquen airport is the name for Aguadilla airport or in the aviation language BQN is the three letter identifier. In Luis Muñoz Marin international airport the larger companies like Delta, JetBlue, United and others have a service they pay for. It’s a third party company that gives them the clearance information in a short computer message that is sent to the aircraft when the pilot requests a clearance without ever having to talk to the clearance controller. After this happens the pilots contact ground control. Ground control is one of the most difficult positions in this type of work. Ground control is the controller the pilot calls to ask for their clearance for pushback and taxi. The pilot does this “Delta 422 requesting...
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...Aguirregabiria∗ University of Toronto Chun-Yu Ho∗ Boston University This version: November 19, 2007 PRELIMINARY AND INCOMPLETE VERSION Abstract This paper estimates the contribution of demand, cost and strategic factors to explain why most companies in the US airline industry operate using a hub-spoke network. We postulate and estimate a dynamic oligopoly model where airline companies decide, every quarter, which routes (directional city-pairs) to operate, the type of product (direct flight vs. stop-flight), and the fare of each route-product. The model incorporates three factors which may contribute to the profitability of hub-spoke networks. First, consumers may value the scale of operation of an airline in the origin and destination airports (e.g., more convenient checking-in and landing facilities). Second, operating costs and entry costs may depend on the airline’s network because economies of density and scale. And third, a hub-spoke network may be an strategy to deter the entry of non hub-spoke carriers in some routes. We estimate our dynamic oligopoly model using panel data from the Airline Origin and Destination Survey with information on quantities, prices, and entry and exit decisions for every airline company over more than two thousand city-pair markets and several years. Demand and variable cost parameters are estimated using demand equations and Nash-Bertrand equilibrium conditions for prices. In a second step, we estimate fixed operating costs and sunk costs from...
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...Public Transportation and Unemployment Tracy E. Anderson Herzing University Public Transportation and Unemployment Some people feel that the unemployment rate needs to be lowered. The reasons why unemployment is a problem – for the individual, it’s the realm of losing his/her job makes him/her feel a depreciating value of self-worth. Another reason is the natural feel and greater level of anxiety about how he/she is going to recover the missing income. It just not only affects the person himself/herself, but it does affects his/her family in the long run. In most cases, that is becoming too common, most families have to downsize their home and/or move; for society/country – It brings despair, unhappiness, and anguish. Sometimes it forces people to live their lives in a way that is financially comprised because it becomes one-income instead of a two-income family. That’s why I feel that by offering free public transportation can be a major key step in reducing the unemployment rates. Supporting Arguments Individuals who can’t afford private transportation often live in neighborhoods that don’t have many businesses, and thus, there are not many jobs within walking distance. By increasing the local customer base for services, such as medical facilities, shopping malls, and local educational facilities, rural transportation can enhance economic growth. Second, public transit can improve economic efficiency. “For example, when a transit system allows an unemployed individual...
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...Urgent flight from Paris airport to New York via United Kingdom Problem We need to travel to New York from one of Paris airports threw United Kingdom airport. We are in an urgent situation. What steps we must follow to gather data’s and information’s from our agent website? Before we start gathering data’s and information’s we must determine our problem and our goal. Goal: Reach New York City from Paris threw U.K airports. Problem: We must select the faster route to reach our destination. Having determining our goal and problem we must set some constrains. Doing so we will be able to filter faster data and information’s and we will avoid gathering unnecessary data’s and information’s that will take time to analyze and louse valuable time. Constrains: 1) We will travel alone. 2) Departure airport: Which airport we must choose. 3) Date and time: We are in a hurry so we must look for the faster day and time to travel. 4) United Kingdom airport stop: We must make a stop to a United Kingdom airport and from there travel to New York. It doesn’t matter if will be the same airport or different one. We must avoid airports that their stuff does strikes or will be in strike the day we will travel. 5) Airline: We avoid airline companies that we know there schedules programs are not trustworthy and always have delays, strikes or other problems. 6) Cost: The cost of the airline ticket is not important. 7) Landing airports in New York: We don’t care...
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...’” About 95 percent of those visitors come by car or bus. But now there’s a new show in town—the Branson Airport. The $155 million airport, which opened in May 2009, is an experiment that many people are watching. The airport is generating interest from city governments and the travel industry because it’s the nation’s first commercial airport built and operated as a private, for-profit business with absolutely no government funding. As one expert said, “...unpretentious little Branson Airport could have an outsize effect it if works. It could turn what now is a mostly regional tourist spot into a national destination for tourists.” Steve Peet, the airport’s chief executive, admits that he had no idea where Branson was in 2000. But by 2004, he was convinced there was money to be made flying tourists there. He says, “If you were ever going to think about building a private commercial airport, this would be the place to do it. How many more visitors would come here if we made it easier and affordable for them? It seemed like an incredible opportunity.” So, using private financing, he decided to build a new commercial airport a short distance south of Branson’s popular music shows district. Both Peet and Jeff Bourk, executive director of the airport, continue to tackle the managerial challenges of turning that dream into reality. Construction work on the airport terminal and the 7,140-foot runway (which can...
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...http://hwsoloutions.com/?product=res-351-week-1 Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION RES 351 Week 1, Business research process involves the study of all aspects of the company and then that information will be used to make business decisions. This requires several steps to help the company achieve its goals, and evaluating its strengths and weaknesses to solve or to avoid problems. The research process also helps to have a clearer and updated idea of their industry (Suttle, 2014). After worked for more than seven years in the airlines industry, I decided to review an article titled “Customer Satisfaction in Airline Industry.” During my years of experience, I saw how many of the passengers left the airport frustrated with the services offered. I think this is a good topic for me to evaluate, because it help me to understand situations that are important within the airline industry. Current Event in Business Research In the summary of the article “Customer Satisfaction in Airline Industry” explain how the research followed on how the five dimensions of customer satisfaction was applied in the airline industry. Such articles can be used to design strategies specifically aimed to increase the level of customer satisfaction in the airline industry. At first I was a little confused about the method used in this article, but I have come to the conclusion that the method used in this article is applied research using an explanatory study. “The...
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