Undertake a critical assessment of the operating and commercial performance of an airline of your choice.
You need to look at the following four key areas:
• Operational characteristics (e.g. route structure, traffic volume and growth)
• Marketing and competitive situation (e.g. marketing strategy, main competitors, alliance strategy)
• Financial performance (e.g. profitability, costs, revenues/pricing)
• Environmental policy (e.g. reduction of main impacts, off-setting)
Part 1 – Brief Introduction
Introduce airline – how long has it been around, who owns it, what type of airline is it (network, low cost etc). You may also want to highlight any important events which have happened but a long
history of the airline is not required.
Part 2 – Main Analysis
– Review the routes/areas which are served (a long list of each specific route is not required), have any new ones been added/dropped recently and why?
– How has the traffic grown in recent years (a five year period is ideal if available) and why? How does this compare with competitors or regional/global averages
– Assess the profitability (operating profit and operating margin) over last few years (again five year period would be ideal) and try to explain what you have observed.
– What has happened to unit costs (costs per ASK or ASM), unit revenues/yields (revenues per RPK or RPM – a few airlines such as EasyJet have revenue per ASK) and load factors over this time?
– How does the financial compare with competitors or regional/global averages?
– Who are the airline’s main competitors? (this may vary according to whether for example you are looking at the airline’s short-haul or international services)
– How does the airline compete (prices? Service features etc?) Does the airline belong to an alliance and what benefits does this give the airline (If it does not, why not?)
– Does it have any unique or interesting features associated with its marketing strategy (A long list of all the marketing tools or product is not required)
What are the airline’s main environmental policies related to emissions (global and local), noise and other areas such as waste and energy? (A long list of technical details is not needed)
– Does it have any unique policies?
– Does it participate in any offsetting activities as a company?
– Does it offer it passengers the opportunity to offset?
Part 3 – Conclusion
– Summarise and reflect on your findings in the main analysis