ASSIGNMENT ONE — INDIVIDUAL REPORT (25 marks)
Task –
Understanding the importance of having a national airline, the Government of Montenegro has called for proposals from interested parties to submit plans on the launch of a new airline, which is to be based in the capital, Podgorica. They have not prescribed any specific business model ie. FSC, LCC or Hybrid – this will be up to the consortia submitting the proposal and will need to be made clear in the proposal (and reasons why), as it will impact on fleet size aircraft utilisation and other aspects of the airline.
They have set the following criteria for the proposed plan to include: – Aircraft type : A320CE0
Gear in the proposal (and reasons why), as it will impact on fleet size aircraft utilisation and other aspects of the airline. They have set the following criteria for the proposed plan to include: Aircraft type : A320CE0
Frequencies and city pairs:
TGD-BEG 3x daily
TGD-IST 2x daily
TGD-LHR lx daily
TGD-SVO 2x daily
TGD-VIE 2x daily
TGD-CDG lx daily
TGD-FCO lx daily
(av fare $70 one way) (av fare $90 one way) (av fare $140 one way) (av fare $160 one way) (av fare $80 one way) (av fare $130 one way) (av fare $80 ne way)
Assessable components –
1. You need to determine how many aircraft you believe will be required to deliver the above operating plan and clearly justify/support your decision as to why. You will also need to calculate the daily aircraft utilisation (hours/day) for your A320 fleet. Remember to ensure that this be consistent with your chosen airline business model and be sure to cite industry or academic references where relevant/necessary to support your plan This will be key to maximising your marks.
2. Calculate the :-
WEEKLY RPKs
WEEKLY ASKs
WEEKLY Revenue, and
R/ASK if the forecast network seat factor is 80%.
NB: be careful and thorough with your calculations. Check and double-check them to ensure that they are correct to ensure that you maximise your marks.
3. Using the below block hour costs, what routes are profitable?
4. Lastly, draw up a spreadsheet showing a possible 1 week pattern for the A320 fleet. You must comply with any curfews. (do this separately to the report and submit it separately as well).
NB: be sure to look at the student examples loaded in Moodie to help guide you on the expectations of what a good schedule plan looks like.
A320 (based on typical industry block hour values) Crew $428
A320 (based on typical industry block hour values) Crew $428 Fuel $2,378
13
Aircraft $530 (lease or ownership cost) Distribution $433 (sales/marketing/commissions etc) Insurance $33 Other $45 TOTAUHR $3,847
The finalised report and spreadsheet is be submitted via Moodie Turn-it-in, no later than 2359h, Sunday March 19. The Report must be done individually and requires:
• a brief analytical report of 500 words to cover all facets of the assessment requirements(+/- 10%). • the preparation of an excel spreadsheet showing the proposed 1 week flying pattern
