MGMT415: Define Revenue Drivers, Cost Structures, the Importance of Ancillary (Non-flying) Revenues: Airline Management Assignment, SUSS, Singapore

Details

Define revenue drivers, cost structures, the importance of ancillary (non-flying) revenues, the general level of annual profitability, key performance drivers for one major full-service network carrier (FSNC), and compare key performance indicators with worldwide and regional trends over the period 2000-2019.

Task scope:

Step 1. Airline key performance indicators.

• Identify, assess and illustrate key performance indicators such as number of passengers, number of destinations (international and domestic), the fleet structure, number of codeshare and interline agreements (ranking by year), the number of aircraft landings, number of active employees and number of pilots for one major FSNC over the period 2000-2019.

Step 2. Airline revenue drivers:

• Identify, assess and illustrate key revenue drivers such as capacity (ASK and RPK), passenger yield, load factor, cargo and others (ancillary – bag fees, charge fees, catering, FFP, services) for one major FSNC over the period 2000-2019;
• rank key revenue drivers for one major FSNC in 2019 (changes 2018/2019) for the international and domestic markets.

Step 3. Airline cost structure:

• identify, assess and illustrate the cost structure and analyze elements such as labor, fuel, aircraft maintenance, CASM (or CASK), aircraft ownership and other unit costs for one major FSNC over the period 2000-2019;
• rank cost drivers for one major FSNC in 2018 (changes 2018/2019) for the international and domestic markets.

Step 4. Airline profit:

• identify, assess, and illustrate the unit profitability for one major FSNC in 2018 and 2019 (comparison of system RASM and CASM (RASK and CASK).

Step 5. World capacity trends:

• identify and compare the worldwide and regional trends in the aviation market;
• identify the world and region airline Сapacity Index;
• demonstrate the forecast of aircraft fleet (turboprop, regional jet, wide-body, narrow-body) at the global and regional levels.

Conclusion