Airline Operations

Aviation Management

General Information

You will be required to “deep dive” into the situations and issues.

For both questions, assume you are a newly hired aviation analyst at an investment bank.

In Part 1, you will be performing perform a SWOT analysis of an airline’s operations and marketing strategy for a possible investment by your company. Consider the SWOT analysis to be part of determining if this is an “attractive” or “unattractive” business for your company to invest in.

In Part 2, you will research and analyze the low-cost long-haul airline model and (1) determine whether the new generation aircraft played a role in making this model feasible, (2) whether this model is sustainable and (3) whether it will survive an economic downturn.

Assignment Weighting
Part 1: 35%

Part 2: 35%
Presentation

This paper should be double-spaced, 12-point font, and ten to twelve pages in length (3000 words) excluding the title page and reference page. Please write in the third person.
Order of presentation:
Title page.

Introductory paragraph.

Use headings to demarcate your discussion.

Summary paragraph.
Reference page.

In-text citations and references shall adhere to the Harvard Referencing Guide. You are also expected to paraphrase and not use quotes.
Marking Criteria (Grading Rubrics)

The grading breakdown is shown below. Note the bulk of your grade will be for analysis, critical thinking and decision-making. It is also strongly recommended that you carefully proofread your paper before submission. Evidence of carelessness in your written presentation suggests evidence of carelessness in the preparation of the substantive material in your paper.

Understanding the Assignment 10% Treatment of the Assignment 35%
Research (10) Critical Thinking (10) Analysis (10) Synthesis (5)
Recommendations and/or Conclusions 30%
Reasoning (15) Effectiveness (10) Relevance (5)
Presentation and Structure 25%
Written Expression (15) Use of references (5) Proofreading (5)
Total: 100%

Assignment Details
Part 1: SWOT Analysis (35% of Overall Grade)

Select any ultra-low-cost airline from anywhere in the world that has been in operation for less than ten (10) years for your SWOT Analysis and use this analysis in the following scenario:
1. Perform a SWOT analysis of the airline.

2. Analyze the marketing and operating strategy. Is it effective? What is the competition?
3. Would you recommend investing in this airline? Why or why not?
Part 2: The Low Cost Long Haul Business Model (35% of Overall Grade)

Is the low-cost long haul the way of the future? The recent success of the likes of Norwegian, Cebu Pacific, WOW and others suggest that the low cost long-haul is a viable business model that is no longer experimental and is becoming more mainstream. Competition in this sector is fierce, particularly in Asia, and the pressure to keep fares low can put a burden on margins, particularly when economic conditions are fragile, and/or the cost of fuel rises. Nevertheless, the long haul low cost sector is growing rapidly and is well on its way to account for more than 1% of the global market.
Please answer the following questions:

A. Have the new generation aircraft made the low cost long haul more feasible as a business model? Why or why not?

B. Is this model sustainable? Why or why not?

C. Can this model survive an economic downturn when discretionary travelers do not travel or opt for other forms of transport? Why or why not?