Tuesday 26 May 2020

Ales Airlines Pre-final Report

Ales Airlines Inc
Wings Journey To a Lifetime
#7 Airport Drive Austin Texas USA  
info@AlesAirlines.com


Following Board of Directors

Shruti Chauhan - Owner cum CMD
Sonali Raikar - CEO
Namya Chugh - Director HR
Jeevitha Sugmar - Director marketing
Srishti Malkotia - Director Cargo
Punam Jiwane - Director Graphic
Ashima Sharma - Director Training
Priyanshi Maheshwari - Director Fintech

Signature and Pictures of Board of Directors


The following tasks are completed by Board of Directors

Name of Our Dream Airline - Ales Airlines Inc.
Address - 7 Airport Drive Austin Texas USA
Email Ids -  info@AlesAirlines.com
Tagline - Wings Journey To a Lifetime

1)SOP
 2)Frame selection procedure of crew members
3)Corporate Aviation Proposal
4)Air Cargo Business Plan
5)Marketing plan
6) Operating Airports
7) Air Charter Business Plan
8) Business Model
9) Startup Cost Estimation Plan.
10) Report on starting a small Airline company in Canada
11) Training Plan 
12) KRA
13) Aircraft maintenance business plan
14)FBO Business plan 
15) Aircraft Requirements
16) Aircrafts Order Plan 
17) Marketing Strategy 
18)Logo
19) Posters
20)Final Flight Order and Cost Estimation.
21)OPM
22)Study on Types Of Aircrafts
23)Americal Airlines Boarding pass
24)Americal Airlines Flight Route 
25)Americal Airlines Uniform
26)Americal Airlines  Itinary
27)Americal Airlines Route Map  
28)American Airlines  Fleet List
29)Case Study on how to open up Small Airlines in USA 
30)Case Study on Amarican Female Tycoon and their Business.

https://asiaticairin.blogspot.com/2020/05/ales-airlines-opm-report-by-namya-chugh.html














Report By,

Sonali Raikar
CEO
Ales Airlines Inc. USA













Disclaimer  :
This is just a Fictional game not a real one . As an MBA students, Interns are playing different Role Plays.

Ales Airlines - Marketing Strategies by Jeevitha Sugumar Director Marketing

Ales Airlines - Marketing Strategies 
    
      Ales Airlines is looking to expand its operations in the Airline Industry by opening up new routes to new locations. The company is looking to expand its fleet and offer customers short breaks and various summer and winter holiday packages. This is a unique opportunity for the company to invest a new concept of marketing in the aviation industry. In order to achieve this Ales Airlines will need to create a demand in the holiday industry by providing a multitude of destination options, on flight services, cheap and competitive fare rates.
Ales Airlines will have to begin the process of expansion, a marketing strategy plan which incorporates the major ideas of marketing to promote the new holiday packages. This report offers various strategies that can be implemented for the benefit of the airline as well as compete with other airlines. According to the research conducted the direct competitors of Ales Airline operations will be Easy Jet and Ryan Air as they provide low/cheap fare for both long-haul and short-haul travel. However, these airlines have not completely carved a niche in the holiday market, which will be the main aim of Ales Airline to provide luxury holidays with little expense.
The market research conducted for the report includes industry trends, market segmentation, an analysis of the various competitors that Ales Airline will need to interact with, and customer trends/profile. The report develops the marketing strategy for the holiday expansion by following the marketing information system (MIS) approach and comprehending the environmental setting in which the company will be operating in.

Introduction

It is difficult to define marketing in a single best way. However, there are two definitions that truly capture the critical components:
Marketing is the process of planning and executing programs designed to influence the behaviour of target audiences”
Alan R. Andreansen and Philip Kotler (as cited in Kramer et al, 2010)
Marketing is the art of identifying and understanding customer needs and creating solutions that delivery satisfaction to the customers, profits to the producers and benefits for the stakeholders”
Sean Mauger (as cited in Kramer et al, 2010)
Marketing is a strong tool that can be used to attract customers, expand business, and initiate innovation to match the strategic needs of any organisation. Various marketing concepts are essential to development of a strategic marketing plan for Ales Airline in order to compete with competitors within the market. This data will be obtained from intensive market research to understand the consumer psyche, buying preferences, and air travel market place to capture the maximum market share. This report will discuss the various marketing strategies that can be used to develop a marketing department to focus on the European holiday market.

Overview of Ales Airlines

Ales Airline is a small but successful business mainly operating from small regional airports in the Austin Texus with flights to 20  destinations. The destinations that are catered to are either near major cities or seaside resorts. Ales Airline currently leases its fleet of 5 Boeing 737-600 planes with the capacity to carry 110 passengers. The current goals for Ales Airline include:
1. Upgrade its fleet to include planes that are able to hold 150 passengers
2. Increase current number of destinations to 30
3. Expand operations by offering customers holiday packages and short breaks

MIS & Environmental Scanning

Marketing information systems (MIS) and environmental scanning are essential components that are imperative for data collection in order to develop a strategic marketing plan. MIS is used to bring together incongruent or contrasting items of data into a form of information that is coherent and applicable. MIS should not be considered as just raw data, it provides a means of interpreting the information provided by MIS to aid in decision making. According to Kotler (1988) MIS is a “continuous form and interacting structure of people, equipment and procedures to gather, sort, analyse, evaluate, and distribute pertinent, timely and accurate information for use by implementation and control.” The following diagram illustrates the functional implementation of MIS that Ales Airline will need to employ in order to conduct research for expanding and developing packages for the European Holiday promotion.
Since Ales Airline  is a newly Started Airlines , it has a wealth of information that can be utilised which includes internal records that are of instant value to marketing decisions, orders received, stockholdings, and sales invoices. Records can be used by marketing managers to sort, examine, and interpret data which can be incorporated into a marketing strategy from information received from sales invoices such as:
Product type, date of purchase, and package type by territory
Product type, date of purchase, and package type by type of account
Product type, date of purchase, and package type by customer
Average value and/or volume of sale by territory
Average value and/or volume of sale by type of account
Average value and/or volume of sale by sales person
By looking and comparing invoices Ales Airlines can establish to a certain extent if it is providing acceptable customer care and this data can also provide insight to trends of buying behaviour that is exhibited by customers in terms of purchases of holiday destination packages.
With marketing research systems a proactive search for information is taken by companies. It is suggested that Ales Airlines commission a study to solve the perceived marketing problem in order to develop a strategy that directs its efforts to an affordable European holiday.
 
Market Segmentation

To complete market analysis and market segmentation this will require a specific passenger and destination survey which is an added cost and is recommended for Ales Airlines to conduct such an analysis.
The preliminary analysis that Ales Airline should conduct and include a variety of methods such as observations, interviews with travel and airline industry professionals, economic segmentations, future projections based on marketing plan, and experience within the region and market for planning purposes. The following is an estimate overall market segmentation retrieved from literature review:
Business- 16%
Government and International Organisations- 10%
Regional (America) Resident Personal and Leisure Travellers- 26%
Personal and Regional travellers based in South England- 11%
Seasonal Holiday travellers- 37%
 Low fares have become an expectation from consumers due the extent of de-regulation of airlines and focus on price positioning is no longer the only concept an airline needs to build on. The market segment opportunities for an emerging airline such as Ales Airline include a combination of service mix, price, route selection and has to decide on a service mix and price in conjunction with this as this decision will impact customer preferences. Speciality carriers are categorised as either “short-haul” or “long-haul”.  
Competitor Analysis

The SWOT analysis model enables to determine how Ales Airline compares to its peers and competitors. For this particular competitor analysis the following information is focused on:
Air service offered: destinations, carriers, frequency, and aircraft type
Business and leisure air fares
Holiday package deals
History of service at airports in North West England
From the previous section’s market research it is found that Ales Airline has the following competitors:
Express jet
American Airlines
 Delta Airlines
Southwest Airlines
Norwegian Air shuttle

Customer Analysis/Buyer Behaviour
According to Zeithaml (1988) value is a trade off between ‘get’ and ‘give components of customer experiences. The relationship between the benefits that the customer attains from the product or brand and the cost borne by the customer to obtained from those benefits is known as the customer perceived.
Customers of Ales Airlines are mostly those leisure travellers situated in the North of England therefore the airline needs to target outbound passengers from counties such as Greater Manchester, North Yorkshire, Cheshire, Cumbria, Tyne and Wear, Merseyside, Northumberland, etc.
According to Chacon and Mason (2011) a study with respondents indicates the purchasing criteria of consumers in which respondents indicated the most important aspects when choosing an airline:
1. Frequent-flier program
2. Range of Destinations
3. Service (onboard and at the airport)
4. Punctuality
5. Price
For low cost carriers customers included Price and schedule as well as additional product features which included seats, in-flight entertainment, and lounge access. These are important aspects that are incorporated into Ales Airline customer profile which influences buying behaviour. Based on these buying behaviours (See Appendix B) and added demographic preference of travel for leisure travellers for both the summer and winter holidays we can build a customer profile.
 
Pricing Strategy

The airline industry is a competitive setting which is continuously changing and influencing the changes in Ales Airlines. Competition in the market will influence Ales Airlines into evolving their business model or competitors of the company to adapt their strategy in order to look for an advantage. However, with a strong pricing strategy along with revenue management and pricing solutions Ales Airlines can become flexible enough to achieve in the ever changing marketplace. It would be beneficial for Ales Airlines to integrate into their pricing strategy a designed solution that incorporates revenue management to effectively compete in with other carrier and low-cost carriers. The proposal would be to take advantage of Ales Airline’s connecting hubs using the company’s own network. An effective pricing solution needs to be able to collect information and analytics that allow it to respond rapidly and effectively against fare charges of their competitors.
Product and Branding Strategies


Ales Airlines’ main aim is to establish itself as a niche player in long-haul market but low cost fares by providing high level service and comfort at cheap prices. In order to do so the company will work on the following branding strategies to incorporate concepts of significance, positioning, and benefits:

Frequent Flyer Miles Program

Major airlines such as British Airways, Emirates and Aer Lingus have been successful in retaining customers by giving them frequent flyer miles each time they travel. As customer mount miles they gain specific privileges which include access to airport lounges, upgrades, and free flights. Ales  Airlines will introduce a frequent flyer program of its own which is simple and coherent with the holiday concept. Ales Airlines will offer frequent flyer internet cash to customers that can be spent on specific travel websites for holiday packages.
Promotions Strategies
Offer special holiday promotions to destinations such as Paris, Madrid, and other for the first month of the holiday scheme operations to attract as many customers as possible and get them to experience the services.
Airline’s Convenience Services for Flight’s Passengers
e-tickets- Tickets purchased are 100% electronic and the passenger will need their passport and confirmation number in order to board the plane. They will also be able to print a copy of the itinerary from the company’s website.
Free transfers to-from airports: A free shared car service will be offered between airports of destination areas to specific hotels, ones that are affiliates of Ales Airlines will be made available to customers.
Larger carry-on luggage- Increased space on board will allow for the airline to accommodate larger carry-on luggage which is a sensitive issue for most travellers that do not wish to check in.
Ales Airlines needs to market its products under the brand position that it is the complete holiday planning company giving its customers luxury at an affordable price. The developing brand itself creates an emotional tie with the customer that goes further than just the price. Ales Airline’s brand signifies a holiday experience that is developed to allow its customers to make worthwhile memories with family or loved ones. This is evident in the development of logos that target customers to establish an emotional relationship with the company. 


Conclusion

The report features an analysis of the industry and external environment of Ales Airlines and looks at strategic options that the company can implement in order to make the new holiday package destinations to become a success. In order to survive in this industry’s changing environment it is essential that the airline implements a strong marketing strategy that incorporates that various aspects that have been discussed in this report. Competing airlines are also working daily to improve their business operations. There is serious competition for Ales Airlines with Easy Jet and Ryan Air who are already operating regionally and to 
major European destinations. Ales Airlines should focus on improving and maintaining a high level of customer service along with affiliating with hotels and car rental companies to give the customer the ultimate holiday experience and value for money.

Jeevitha Sugumar
Director of Marketing Department 
Ales Airlines Inc. USA


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Disclaimer  :
This is just a Fictional game not a real one . As an MBA students, Interns are playing different Role Plays.

Ales Airlines Final Report on Aircraft purchase

Report by Srishti Malkotia Director Cargo

We will be ordering about 2 Freighters Boeing 777(freighter) and other cargo operation can be conducted in the bellies of passenger flights. Number of passenger flights required will be 6-7. The fleet will consist of Airbus 300/330/340, Boeing 747 (2), A320 (2). We initially will be ordering 2 A320, 2 Boeing 747 and 1 freighter and further expand the fleet. Current orders will cost us 977.7 million dollars.

Report by Jeevitha Sugumar Director Marketing

Number of Aircrafts required to buy for our Ales Airlines 

Acquiring an aircraft for a startup starts with what type of aircraft will work for your intended routes and payloads. For instance there were hundreds of 727 freighters that were taken out of service by FedEx and others in order to switch to 757s. The 757s were acquired from companies such as United who had purchased them new and used them for decades but found it was worthwhile to improve their passenger carrying fleet. The 757 was designed in the mid 1970s to replace the 727 fleet. The 757 could carry more payload and do the work of the 727s with one fewer engine and one fewer cockpit crew member. So you can see how inventories of aircraft are moved according to the value in service. At one time there were airports full of relatively new 50 seat CRJs that were being dumped for very little money because that experiment did not work well for the big players and they simply wanted them gone.

Key items to consider are route payload applicability, fuel burn rate, maintenance history ie where is the aircraft with regard to large maintenance B check, C check, individual engine condition and history, applicable Airworthiness Directives, and time and age limits which may affect registration options. The knowledge required to do a proper purchase inspection is key to keeping a used buyer out of big trouble. Also replacement parts “rotables” are useful to understand and manage including a method to keep an engine available. The APU is another item to think about. There are companies who lease APUs by the hour (power by the hour). For short hops brakes become an issue to manage.

Experienced players know the tricks to save massive amounts of money. As a first time buyer paying for an experienced fleet manager will pay back money instantly. It is common to be able to save hundreds of thousands to millions of dollars using experienced managers.
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Airlines is a high cash-burn business. 

You spend Rs 2.5 lakh an hour to fly an Airbus A320. 

To fly it for 10 hours a day, you need Rs 8 crore.

If you have six aircraft — airlines need to bring in six aircraft within year of starting operations — you will burn Rs 90 lakh a day or Rs 27 crore in a month.

So, We need have at least 5 to 15 Aircrafts in order to run less than or equal  to the other Airlines, but not worst. And we can expand or enhance Once we get the Capital profit.

Ales Airlines OPM Report by Namya Chugh

OPM 
In finance, other people’s money, or OPM, is a slang term that refers to financial leverage. Other people’s money refers to borrowed capital that is used to increase the potential returns as well as the risks of an investment. OPM can be used by individuals or by corporations.
Using other people’s money is considered a double-edged sword – it cuts both ways. If an investment that is levered with other people’s money turns out to be profitable, then the profits are magnified by the effects of the leverage. However, if the levered investment goes sour, then the investor that utilized other people’s money can incur steeper losses.
Capital structure refers to a company’s mix of debt and equity financing. Many factors must be considered when determining the optimal mix of debt and equity financing. Increasing leverage, or the use of other people’s money, up to a certain degree can benefit a company by increasing its tax shield. On the other hand, more leverage can increase the risk of default and the incurrence of bankruptcy or financial distress.

Namya Chugh
Director HR
Ales Airlines inc. USA
Social media links- 

Disclaimer  :
This is just a Fictional game not a real one . As an MBA students, Interns are playing different Role Plays.