Airline Industry : Operation Of Cargo

Describe about the Airline Industry for Operation of Cargo.

 

1. The Airways does not operate in the separate cargo fleet, expects to increase the revenue from the operations of the cargo.  The Airways is expecting to increase the revenue by 20%. The Airline Company was making a profit of 7% since last past year and now with the introduction of the 20 new Aircrafts the Airline Company has made a strategy to improve its financial statements and make a profit of more than 20%.  The Airline is expecting to increase its revenues from the International operations, which is 50%.  Therefore, Airlines has made certain strategies to cut the operations cost by almost half of the costs that are being incurred by the Airlines currently. The Airlines with the help of the new airplanes must attract new customers and provide the quality service. The cargo must expand its business to other locations as well where it can attract new customers. The service fees or the convenience fees can be charged that would be 10% of the fare to the customers. The airlines can provide the customers with the personalized offers. The airline can provide coupons for the online shopping with every booking of the tickets.

 

2. Therefore, the company should revise their services that are provided to the customers. Therefore, the focus should be laid on the e- services that are provided by the airlines. The Airline Company must attract more of the business travelers and provide them with the free offers. The offer must include free stay in a five star hotel for two days and the prices of the fares should minimal for the passengers who are taking more than 10 trips a year. it should rise in order to remain competitive in the market.

 

3. The Airline is losing its competitiveness. The trade around the world is growing. The4 competitors are gaining market share with respect to the faster ships, lower price and the innovative solutions. The value chain of the air cargo must offer better quality service and the operations efficiency that are safe and secure. With the question of improving competitiveness is more closely linked with the team efforts.

The issues that should be taken care:

Security: The cargo screening should be there. There should be the change in the air cargo, which affects the business.

Quality: Cargo is the competitive business and it is being analyzed that around 95% of the cargo goes by sea and the rest 10% by air. In case, there is a delay customers should be known beforehand about it.

Rates: The rates should not be unnecessarily discounted. wasting money should promotions for the wrong customers is irrelevant.

Resources: The resources should not be misallocated to the unprofitable segments of the production.

4. The company should look at the internal conditions and use the common tool of the value chain.  The value chain identifies the employee skills, infrastructure, technology, operations that are being used by the company. To communicate with the external environment the Company should understand its SWOT Analysis, PESTEL framework and the Porters five forces model.

Bibliography

Aslani, S., Modarres, M. and Sibdari, S., 2014. On the fairness of airlines’ ticket pricing as a result of revenue management techniques. Journal of Air Transport Management, 40, pp.56-64.

Denizci Guillet, B. and Mohammed, I., 2015. Revenue management research in hospitality and tourism: A critical review of current literature and suggestions for future research. International Journal of Contemporary Hospitality Management, 27(4), pp.526-560.

Kim, W.C. and Mauborgne, R., 2014. Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant. Harvard Business Review Press.

Merkert, R. and O’Fee, B., 2013. Efficient procurement of public air services—Lessons learned from European transport authorities' perspectives. Transport Policy, 29, pp.118-125.