For this senior project assignment you are to create & operate a competitive domestic carrier within the airline simulation environment. This exercise will re-introduce you to the essential components of airline operational design and will make you work successfully to fight off the competition in the simulation environment. There will be a limited number of teams this semester so I have restricted the number of airports that you can operate from.
Expect the competition to be fierce! You need to get out of the gate quickly and stay on the ball to be successful otherwise your competitors will eat you alive!The simulation will open on the announced date (online announcement) and each student will then set up their airline. Each airline will be provided with ,000,000 seed money and to get your enterprise off the ground as well as gather realistic data. We will only be operating mid-size Airbus and Boeing aircraft (A320 series and B737). I will provide you with the login and password via email.
Please note that this exercise progresses very fast and will be completed within two weeks running 8 batches to simulate two full years. Your write-up and analysis is due at midnight on the date stated in the syllabus. The batch results will allow each student to get the necessary data to complete this assignment. To facilitate operations and to complete this project on time you need to assign specific tasks and execute. Prior to starting you should run a rough SWOT analysis, which will be included in your paper, to assess the market.
Additionally, you should choose a strategy that fits your goals and identify metrics to measure success. After these tasks are done, you essentially have much of the paper done other than assessing how the plan actually worked and providing advice for future management using the data collected from the simulation. For the write-up you are expected to reflect on your past performance and add structure and meaning to your airline. What type of carrier did you operate? Did you follow a low-cost leadership, niche, or differentiation strategy? Then, analyze your activities and outcomes for each quarter.
Don’t just provide me with a bunch of numbers from Airline Online but focus instead on the analysis. This approach will later facilitate the analysis of the cost and revenue streams that you will need to acquire through Airline Online for your international business plan project.
Your assignment write up should contain the following sections and address the listed questions:Introduction (20 points)How would you define your carrier based on recent activities? Create a mission and vision statement (see the PowerPoint concerning the domestic competition). Don’t provide cookie cutter airline statements you can find on the internet but be creative and reflective. What was your airline about? Where is your carrier going?
General Strategy (40 points)
What was your initial strategy? How did you set up your airline? What changes did you make along the way? Did it work out? Why or why not?? Right home base? Route structure?? Proper aircraft selection? Operating strategy?? Leasing versus buying decision making? The correct choice? Appropriate configuration? Service level?? Fitting airline schedule? Right advertising campaign?? How productive was your workforce?
Airline Performance & Financial Analysis (60 points)
Review each quarter and address the following questions:? Appropriate airfares? Why or why not?? Was your airline able to turn a profit from the start? Why or why not?? If there were major changes to performance (i.e. a large increase in profit) in a specific quarter,identify the root cause.? Review load factor and on-time performance.? What was your liquidated value over the course of the different quarters?? Assess each quarter and focus on the results of your main routes. Review your analyst section andaddress ASM, RPM, Load Factor, Yield, RASM, and CASM. How did things change over thecourse of the different quarters?? How did you manage your cash flow?
Competitive Forces and SWOT (40 points)?
Identify your immediate competitors. What was your competitive advantage?? Conduct a SWOT analysis for your own airline. Conclusion (20 points)? You decide to sell your airline. What would be your advice for future management?
Submission Quality (20 points)?
Spelling, grammar, structure, and formatting of the document should be of senior level quality. Note: Use the “Imperial” setting to get the appropriate Airline Online data for your project. Format Four pages (a minimum not a limitation), single spaced, font 11, title page (not included in the four page minimum). Use the underlined headings provided in the outline above but keep a logical flow through within each topic. This project is worth a significant amount of your grade (200 points) and is expected to be a senior level quality project.
Since this is a competition, your final grade for the project will take into account the results of Airline Online. This means that a significant part of you grade will come from the Airline Online results. The first place team (on the basis of liquidated value) will receive an automatic 80% on the project and the remaining 20% will come from the submission of the write-up. For example, the first place team would get 160 out of 200 possible points (80%) for the entire project without even submitting a paper, leaving 40 pts for the paper.
If they submit a paper and got a 75% they would receive a weighted score of 190 out of 200. For each place lower than first the grading scale shifts. Each lower place results in a two percent weight shift. Second place will receive an automatic 78% with 32% being contingent upon the paper, third place a 76% with 34% contingent upon the paper, and so on. With this weighted format everybody still has a chance to get 100% but as you move closer to the bottom your final score depends more on the paper.