Reference no: EM131534061

Course: Airline/Airport Marketing

Part 1: Review Questions

1. Discuss the importance of why successful airlines are those who design and implement a sound strategy.

2. Explain why the concept of "value added" focus, using the all-business class strategy, has failed in the airlines industry.

3. Discuss why there has been a growing interest in performance assessment and benchmarking for airports and describe some of these meaningful assessment measures.

4. List and discuss the factors influencing costs and revenues in airports today. Why are these factors problematic?

5. Describe the low cost carrier model and give some examples of this model's use in the airline industry.

Part 2: Performance Measures - Airport Throughput Unit (ATU)

Key terms:

WLU = Work Load Unit, 1 passenger = 100 kg of cargo. work Load Units per airport employee is a labor productivity measure indicating the capability of an airport to allocate labor to productive work processes.

ATU = Airport Throughput Units

ATM's = Air Traffic Movements

Formula:

ATU = Passengers + 10 x freight tonnes + 100 x ATM's

Using the formula, assume you are faced with a decision of whether you should handle more freight or accommodate more passengers at two different regional airports.

Airport A: FY 2013 passengers = 400,000, freight tonnes = 10,000 kg., ATM's = 4000 

Airport B: FY 2013 passengers = 100,000, freight tonnes = 30,000 kg., ATM's = 3000

Assuming that fixed costs for each airport are equal, discuss which airport is more efficient and why?