Reference no: EM132403766

EEAVN4010 Air Transport Economics Assignment - Emirates Aviation University, UAE

Outcome 1: Ability to define Airline Profiles and Business Models.

Outcome 3: Describe the cost and revenue structure of an Airline

Outcome 4: Assess the regulatory and economic environment of the airline/airport industry as well as its evolution from prior to deregulation today

Outcome 6: Compare the economic structure linked to the different types of Airline Operations worldwide.

SCENARIO - You have recently graduated with a Bachelor's Degree in Aviation Management and have joined Emirates Airlines as a Management Trainee. You supervisor wants to assess your knowledge on the aviation concepts you have studied. He wants you to prepare a comprehensive report based on the guidelines mentioned below.

Task 1 -

1. Define Airline business models like Low cost, Full Service and Hybrid models with examples and give reasons for this rapid change in Airline business models.

2. Evaluate the two business models (similarities/differences) on characteristics like:

- Products/Services offered

- Marketing & Distribution

- Cost Structure

- Revenue/Pricing etc.

3. Outline your views on Long-haul low-cost products with examples.

4. Briefly explain the Economic Impact of the Air Transport Industry. Also explain the impact of economic environment on the Air transport industry.

5. Perform a comparative analysis of the aviation industry pre and post deregulation in terms of

1. Aircraft in service

2. Mergers

3. Passenger traffic

4. Airline Profits

5. Annual RPK Growth

6. Choose one of the Key organizations in the Aviation Industry like IATA, ICAO, EASA & JAA and present the role of each organization in the Aviation Industry including details like:

Introduction

Vision & Mission

Objectives

Functions

Organization Structure

Conclusion

Guidelines - You need to refer to the notes uploaded from various text books as well as research from reliable websites. Provide statistical evidence wherever possible and referencing should be in Harvard style. Do not provide brief answers. Support your answers with examples, graphs, figures etc. The report need not exceed 2500 words.

Task 2 -

SCENARIO - Your manager was very impressed with your report and now wants to give you a more responsible task of describing in detail the cost and revenue structure of the Airlines

Guidelines - For this task you are required to make a presentation where you identify the factors that contribute to the cost of an Airline and describe the different sources of revenue for an airline.

You can answer this by choosing a Full-Service Carrier of your choice and investigating their latest annual report. You need to compare the costs and revenues for the current and previous year for which data is available and comment on the same. For your analysis you need to identify the costs based on the ICAO Airline cost categorization (image attached below for reference) and prepare a pie chart showing the percentage of each cost. You need to do the same for revenues as well, and finally conclude with your findings in your presentation.

For the same airline you chose for the previous question your manager wants you to analyze the airline productivity using the below ratios for three financial years (Preferably 2015-16, 2016-2017, 2017-2018) and comment on the same: (Each ratio carries 3 marks, and 7 marks for concluding remarks about the overall productivity)

1. CASM

2. RASM

3. Fuel cost per ASK

4. Revenue per employee

5. Unit passenger Revenue

6. Unit cost per passenger.

Requirements

1. A presentation should be prepared addressing both LO 3 and 5.

2. A trend analysis should be done to show the trend for the productivity ratios calculated.