BAM615: It is June 1st, 2020, Europe is Recovering from a Major Pandemic, Air Travel has Come to a Halt: Negotiation and Conflict Management Assignment, UOL, Singapore

Instructions:

It is June 1^st, 2020, Europe is recovering from a major pandemic, air travel has come to a halt, but there is evidence of recovery and there are plans to restart national and international travel.

You are asked to draft a memo advising the owner of Aegean, a regional European airline. Aegean’s base is in Athens, Greece; it is the major Greek airline controlling 85% of the market; it operates a fleet of 60 aircraft flying to around 150 destinations, mainly in Europe; its main hub is in Athens.

The following four questions are based on hypothetical scenarios. Your answers must be reasoned and supported by your own research of the relevant industries based on information that is publicly available.

Question 1

Your task is to provide a summary note on the position of Aegean against the broader industry environment in Europe and highlight the main risks and opportunities that the company is facing.

In your answer, you must provide a list of short, medium, and longer-term targets you believe the company must adopt.

Question 2

Advise Aegean on an ongoing acquisition negotiation with F-Line, a small, privately owned, French airline that has run into financial difficulties.

In your answer, you must focus on the most desirable outcome that you have chosen against the broader industry environment, identify the appropriate negotiation model, and describe the negotiation strategy that Aegean must follow.

Question 3

Aegean has placed with Airbus, an aircraft manufacturer, an order for 10 A-320, an aircraft with a flight range of 6,300km, and 5 A-350, an aircraft with a flight range of 15,000km. The latter order was placed as part of an ambitious growth plan including flights to non-European destinations.

Aegean wants to renegotiate both orders.

Your advice must consider the relationship between Aegean and Airbus, discuss the reasons for your choice of desirable outcomes, and analyze and identify the most appropriate negotiation models.

Question 4

Aegean is considering the creation of a hub in Stansted, one of the smaller London airports, and has started a conversation with the airport operator.

This is linked with advanced negotiations for the acquisition of Sunkiss, a tour operator specializing in package holidays across the Mediterranean. The Sunkiss negotiations have started before the pandemic hit Europe.

In your advice, you must consider the links between the two sets of negotiations, discuss the reasons for your choice of desirable outcomes, and analyze and identify the most appropriate negotiation models.