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BPMG 3093: Air Transport Management

Assignment 3

Airline Business Plan

The Airline Business Plan is a 30 pages document that explains details the
major aspect of your airline business.

The following information may, or may not, influence your business plan

 Check- in facilities
 Asian visitors to the country are usually preferred to use low cost
carrier services
 Non- Asian visitors prefer to hire cars to get around the country.
 The proportion of passengers passing through the terminal who are
Malaysian passport holders varies for each airline and is
approximately:
- MAS 40%
- Air Asia 30%
- Malindo Airlines 15%
- FireFly 15%

The Airline Business Plan should include six sections. Each section
addresses a key question regarding the business?

 Executive Summary; What is your idea/concept the airline business?


 Market Opportunity; What need are you meeting in the market?
 Product/Service; What are you selling?
 Strategy/Operations; How will you sell the product?
 Management; Who is running the venture?
 Finance; How much money do / will you make? How much capital do
you need?

1. Summary section

The purpose of the summary section is to clearly and succinctly describe


the
idea/concept. This should have a strong, inspiring impact on the reader.

2. Market Opportunity
The purpose of the Market Opportunity section is to clearly establish that
there is a definite and substantial ‘need’ in the target market and to
clearly quantify the nature and size of this opportunity.

• What is the target market? (who is the market? / where is the market?)
• Why will the customer buy the product? (what is the value proposition?)
• How big is this market? (quantitative assessment)
• What are the key features or trends of this market? (qualitative
assessment)
• How much will the airline business sell into this market? (what is the
expected market penetration?)
• Does the market demonstrate the opportunity for sustainable margins
and
growth in the long term?
• What are the mid to long term plans for expansion into other markets?

3. Product / Service (WHAT)

The purpose of the Product section is to describe in simple and clear terms
what the product is, how it is made and what state it is currently in.
• What is the product?
• What does the product do? What are the product’s key features?
• How does the product work?
• What are the product’s key benefits?
• How is the product made? What resources are required to produce the
product?
• What state is the product in now? (idea / prototype in market)
• How much time and money will be required to complete product
development?
• What is the feedback on the product to date?

4. Strategy / Operations (HOW)

The Strategy / Operations section should clearly define ‘how’ the airline
will create value and how it will respond to the market environment.
• What is the airline’s Business Model? (how does the airline make
money?)
• What is the airline’s ‘route to market’ (what does the airline need to do
to sell its product? Does this differ for different markets or customer
segments?)
• What is the airline’s marketing strategy?
• What is the pricing model and the basis for this?
• Who are the airline’s partners?
• How committed are these partners? (what tangibles do they bring to the
venture?)
• What is the competitive situation in the target market?
• Who are the competitors? How much threat do they pose?
• What is the airline’s competitive advantage? (why will it succeed against
its
competitors?)
• How will competitors respond to the airline’s market entry? How will the
airline be able to sustain its competitive advantage in the light of this
response?
• What key milestones have been achieved to date?
• What are the airline’s key milestones in the next 6, 12 and 24 months?
• What are the critical success factors for achieving these milestones?
• What is the airline’s funding strategy as it relates to the operations of
the
venture? (how much funding will be required? from where will it be
sourced?)
• What are the key risks to the success of the airline? How can these be
mitigated?

5. Management (WHO)

The Management section should outline the experience of the


management team and describe the airline’s structure and history
(however brief).
• Who is on the airline’s management team?
• What experience do they have? What are their levels of commitment
(financial +workload)
• Where are the gaps in the team and how will you fill them?
• What is the equity structure of the airline business? (has a formal
company structure been established? who are the shareholders?)
• What are the significant events in the venture’s history?

6. Financial

The Financial section should contain information necessary to establish a


clear picture of the airline’s financial situation (current and projected).
This may include some of the following:
• Projected financial results
• Current and projected capital requirements
• Assumptions and dependencies that the forecasts are based on
• potential exit paths for investors

Note

In order to reach the above outcome, you may also need to complete
some of the following. These are NOT required for the Airline Business
Plan:
• Profit & loss statement
• Balance sheet
• Capital currently available (capital utilization to date)
ASSIGNMENT FEEDBACK SHEET

Module: BPMG3093: Air Transport Management


Lecturer: Dr. Rohafiz Sabar

Assignment Title: Airline Business Plan

Student Name:

Date Issued: Thursday 20 April 2017


Latest Submission Date: Thursday 18 May 2017

This assignment constitutes 20% of the overall BPMG3093 ATM Mark.

A hard copy of your work should be submitted to Dr. Rohafiz Sabar no later
than 1200 hrs on the above submission date. You will be issued with an
email receipt for your work which will show the date that your work was
received.

Any work that is not issued with a receipt will not be marked.

You are reminded that in the absence of exceptional circumstances,


overdue work will be penalised. The marks will be deducted at a rate of
5% per working day for each day that the work is overdue.
Please note: This is an example of cover page (Blue Ocean cover paper)

UNIVERSITI UTARA MALAYSIA

GROUP NAME (S)

BPMG 3093 AIR TRANSPORT MANAGEMENT

COLLEGE OF BUSINESS
Please note: This is an example of inner side of research report (white A4
paper)

UNIVERSITI UTARA MALAYSIA

College of Business

Academic Year 2016 – 2017

Group Name (s)

AIR TRANSPORT MANAGEMENT

Lecturer: Dr. Rohafiz Sabar

May 2017

This airline business report is submitted in partial fulfilment of the


requirements for the BPMG 3093

©Universiti Utara Malaysia, 2017. All rights reserved. No part of this


publication may be reproduced without the written permission of the
copyright owner