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MGMT415 Airline Management assignment sample SUSS Singapore

MGMT415 Airline Management assignment sample SUSS Singapore

In this course, you will learn about some of the administrative aspects that are necessary to operate an airline. Topics include annual profit plans and reports, scheduling theory, pricing strategy, and fleet planning. You’ll also be introduced to several other important topics in operations management so your business can run smoothly through effective leadership strategies.

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TOA, TMA, GBA Assignment sample of Airline Management module SUSS Singapore

At the end of this course, Singaporean students will be able to learn Airline Management module with the help of the following learning outcomes:

1. Recognize the characteristics, scope, and economic significance of the Aerospace/Air Transportation industries and their major business segments – the government market and the commercial market for air transport and general aviation aircraft.

The aerospace industry is responsible for the manufacture of aircraft, engines, avionics, and other related technologies. Aerospace is by far the largest manufacturing industry in the US, more than $147 billion annually according to NASA’s Economic Impact report in 2010. The following are some key points about this industrial sector:

Industries that contribute heavily to the revenue generated from this industry include:

  • Commercial airlines
  • Military aviation
  • Global communications

Maintenance centers and airports across all regions of the world. These industries can typically be classified as “Aerospace Contribution Categories”. The combined trade value of these three aforementioned industries alone exceeds $126billion based on 2009 estimates provided by .

Read also: EAS101 Aerospace Management TMA

2. Describe the historical development of US airlines and general aviation, including the federal legislation affecting the industry’s growth and development, and identify and discuss the roles of the Department of Transportation (DOT), Federal Aviation Administration (FAA), etc.

The development of US airlines began with the construction of a faster, more affordable aviation pathway for military and civilian travel. In 1925, Boeing designed and made planes to transport mail for the United States Postal Service. Commercial passenger service started in 1938 when four companies competed to make scheduled flights between New York City, Washington DC, and Chicago in order to serve business leaders who wanted to avoid railroads as much as possible.

But while these efforts were the genesis that drove today’s major carriers, including Delta Airlines (the second-largest U.S., international carrier), American Airlines (the largest), United Airlines (the third-largest), and Southwest Airlines (the fourth-largest) still dominates by every measure except market share, which is held by Delta.

The first scheduled carriers were not an immediate success, but President Franklin D. Roosevelt’s appointed head of the Civil Aeronautics Board (CAB), Alfred E. Kahn, a brilliant economist who favored deregulation and privatization in all sectors of the economy as well as transportation, believed that airline regulation.

Also read: Air Transport Management Assignment Help

3. Discuss the major factors affecting the aviation industry in the post-deregulation period and explain the current structure of the US airline industry; describe the post-deregulation expansion, consolidation, and concentration of the industry, as well as the current trend of intra-industry agreements

The aviation industry in the post-deregulation period has seen dramatic increases in competition, congestion, and safety concerns. Competition is currently high because so many more people are flying for business, pleasure, or as refugees. Congestion is a result of the increase in air traffic volume combined with constraints at major airports during peak hours. Safety concerns stem directly from this increased volume of air traffic. It is crucial that we provide adequate infrastructure to support this growing industry while simultaneously maintaining appropriate stress levels on the system as well as keeping our planes safe.

The US airline industry is highly competitive, with any of the top ten carriers controlling only slightly more than 20% of domestic flights. Most carriers at the top are either publicly-traded stock companies or have been acquired. Regional airlines control less than a third of routes and flights but account for 53% of revenues due to low operating costs. Low-cost operators such as JetBlue and Southwest Airlines are expanding by taking advantage of lower landing fees

Local service accounts for 87% of commercial aviation in America, while long-distance service makes up 13%. Even though 30 airlines were founded in the United States between 1926 and 1968, five dominate with over 50% market share.

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4. Recognize the principles and practices of managerial planning, organizing, staffing, directing, and controlling; describe the organizational structure of a typical major air carrier, to include the purposes and function of various administrations and departments.

Managerial planning is the process of putting a business plan together, including defining how you are going to get help executing it. Organizing is where you define what needs to be done and decide who will do what as well as making sure that everyone has appropriate tools, equipment and resources in order to successfully complete their tasks.

Staffing includes hiring people for your work, training them on what they need to know in order to perform their jobs effectively, then supervising and evaluating them on a regular basis. Directing is using rewards such as recognition or incentives (pay) so that people do things the way they want instead of just following orders without understanding why. Controlling involves monitoring performance with metrics such as targets, milestones, or financial budgets as well as making corrections to improve things.

5. Discuss the importance of forecasting in relation to analysis, planning, and control; describe the primary forecasting methods used by firms engaged in air transportation.

Forecasting is used to identify what could happen in the future and helps organizations create contingency plans if need be. This prevents them from being blindsided by events they could not have predicted with analysis and planning alone. It’s also a way of connecting analysis, planning, and control into an integrated system that is simpler to use (as opposed to three separate systems).

Moreover, since forecasting deals with probability-based reasoning, it can never be 100% accurate; yet it serves as a low-cost alternative to more expensive predictors like market research or polls. If you’re looking for guaranteed answers that are always right then you will pay much more than what would have paid for forecasted information.

6. Explain the activities involved in marketing air transportation, and examine strategies designed to gain market share, increase product development, and penetrate new markets.

There are several steps involved in airline marketing. Some of these activities have been described by the acronym PLANADE, following the suggestion that an examination should be made of “political, legal, administrative, economic and diplomatic aspects” before any campaign is initiated. The first stage of marketing a new air route can involve delicate negotiations with government authorities including restrictions on subsidies. If the concession is obtained it may need to be defended against protectionist legislation in other countries (e.g., Singapore).

The planning process starts with analyzing demand and competitive demands for both space and time on available routes since cut-throat competition in transatlantic markets does not make every flight a profitable enterprise from an economic point of view. Initial estimates about market demand will help to decide which aircraft will be used, the number of passengers that could be carried over a period of time, and what fares can be charged in order to break even.

7. Examine the determinants of airline passenger demand and the elasticity of demand, pricing strategies, inventory/yield management, operating costs, profit maximization, and output determination in the short run.

Airline passenger demand is mainly driven by the IT enterprise trend, liberalization of the air transportation market, economic development potential, and growth prospects.

There are a lot of factors that determine what drives Airline Passenger Demand. The two main factors that affect it most are the IT trend and more opening-up of the airline industry to other companies. Both of these have made it much easier for airlines to reach their customers where ever they might be now.

This is important because each region has different markets with vastly different needs. If one company can do better than others in one region then there will always be competition as well as an opportunity for those who want to compete within any given industry or region.

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8. Identify the three types of air cargo operators, and distinguish between air-express, air freight, air mail services and describe the factors affecting airline scheduling, and discuss the problems of traffic flow, schedule sensitivity, and financial leverage of load factors

There are three types of air cargo operators: cargo charter airlines, ad hoc freight forwarders, and dedicated freight. A dedicated air cargo operator is the most straightforward type of service. They fly as a scheduled carrier with regular departures from hub airports feeding smaller feeder airports. Dedicated services can operate 24 hours per day every day apart from shutdowns for mechanical servicing and crew rest periods (which is usually at night). They will also offer scheduled passenger flights where these are offered in their areas.

Ad hoc bulk carriers provide pick-up and delivery or time-definite service on non-scheduled passenger or freighter aircraft operated by major airlines, such as FedEx. These services are generally operated by part 132 certificate holders.

9. Explain labor – management relations in aviation, and the Railway Labor Act and examine the major sources of funding, cash management, and financial planning for the airlines.

The Railway Labor Act (RLA), originally enacted in 1926, is a United States labor law that governs labor relations in the railroad and airline industries.

The RLA applies to employees of rail carriers who are subject to its jurisdiction under various sections of the Interstate Commerce Act. The RLA also applies only when an organization certified under it remains on an official list published under section 6 (a)(2) or when requested by a carrier .”

Relations between labor (workers) and management in the aviation industry are subject to a 1913 law called the Railway Labor Act. Section 13 of this Act requires that changes in union contracts take place through negotiation with both unions, not just one side, whereas section 14 prohibits trains from being operated without at least 66% approval of all crew members.

10. Describe the principles of international airline operations, globalization, the role of international conferences and conventions, and discuss the passage of the International Air Transportation Competition Act of 1979.

The principles of international airline operations are some of the core principles that govern how air carriers operate, insure, and plan for their flights around the world.

The first principle is an extension of Murphy’s law saying that whatever can go wrong will go wrong. This principle is fairly self-explanatory as it states what any person might conclude from experience with any type of travel. Regardless of whether there has been prior trouble on a flight in previous times or not, this principle seems to be in effect during every flight.

The second principle in international airline operations is one that has more to do with rules than actual events. This rule states that each country a flight enters must have authority over its own airspace if it wants control of the route. This means that it is important for airlines to check ahead of time which countries their flight will enter, and they must also ensure the plane has type-specific flight permits from each country.

The third principle in international airline operations is the “Instrument Flight Rules (IFR) Rule.” This rule states that if an aircraft goes out of its way to avoid storms, it must have more than one engine in case something happens.

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