Economic, Financial and Commercial Assessment of a Typical Airline or Airport

Economic, financial and commercial assessment of a typical airline or airport 

Select an airline or an airport of your choice based on published information available i.e. market, operational, economic, financial and other related information 

•Conduct research and select the business only if the financials and operational information are published in the common public domain 

•Analyse and evaluate the demand versus supply scenario for the airline or airport and conduct an economic analysis (SWOT, PESTLE, etc) 

•Analyze, evaluate and critique the financial statements of the airline or airport making your assessments on revenues, costs, profit/loss and outlining opportunities and challenges 

 

•Review and present your findings post analysis of your airline or airport statement of accounts – P & L, Balance sheet etc.

 
•Discuss how the airline or airport is funded

 
•Discuss income generation, sources of revenues and areas of spending

 
•Present an assessment of the airline or airport commenting on the financial health, major revenue segments, insights on costs and outlining any future growth and profit prospects for the airline or the airport

 
Present your Assignment covering the crucial aspects as outlined in the subsequent pages (100 marks)

 
While writing the report, you will need to consider the following:

 
(1) When applying the strategic tools and techniques, you will need to conduct market research for the related airline and airport to understand the ownership, strategy, past performance, future capabilities, its vision, mission and core values etc.  
 

(2) It is crucial that you have access to its published financials and other operational details so that you can make related assessments, reviews and enable an informed analytical assignment. Please refrain from just quoting verbatim status of the airport or airline financials and it is required that you bring in critical reviews and assessment of the financials and other operating data outlying some challenges and opportunities. 
 
(3)Apply the different aspects of learning in this module, academic theories, techniques and strategic evaluation tools for the related airport or airline and conduct your reviews to present your assessment of the airline or airport of choice.  
 
(4)Outline in your assessment the various factors which affect aviation business for the chosen airport or airline bringing in the macroeconomic and PESTLE/SWOT analysis for the area of business, critically assessing succinctly the government policy and strategy. Outline what is the policy of bilateral or multilateral agreements and the impacts of the freedoms of air. 
 
(5)Briefly outline the marketing mix of the airline or airport of your choice highlighting the unique selling propositions and areas of potential improvements across the marketing mix for the airline or airport.  
 
(6)You would need to relate the airline and airport of your choice to the key aviation trends (the cyclical nature of the global aviation industry) and critically assess the position of your airline or airport pertaining to the global trends highlighting some key opportunities, threats and challenges for the airport or airline 
 
(7)Outline what could be done differently in the airport or airline of your choice relating it with global trends and benchmark it to an industry leader airport or airline citing examples of successful transformation highlighting your assessment 
 
(8)You would need to make a good assessment for aviation economics and present a demand (RPK/M) and supply (ASK/M) assessment for the airline or airport of your choice using the operations, financial and other date sources from the public domain and presenting your critical assessment in a succinct manner, using facts. 
 
(9)Make an assessment of the airline or airports financials briefly assessing the profit and loss account, balance sheet and the future forecasts, if available. Outline your key findings highlighting some opportunities and challenges based on your assessment of the performance and productivity indicators for the airport or airline. 
 
(10)At the end of the report, outline key conclusions based on the strategic framework analysis of the aviation economic and financial assessment outlining your recommendations for improvements on the way forward for implementation. 
 
Identify any other information or analysis you would want to undertake to reinforce your analysis and decision.