Aviation management: Surviving the Economic Crisis
Paper Subject: A operational rescue plan for Air France Suppose that the Global economic crisis happened again. This economy-related event has affected France and has resulted in an immediate collapse of both business and leisure demand for air travel. Forecasters believe that up to 30% of travelers will either cancel their bookings or not travel at all within the next month. Domestic and international travel to and from France is affected. Your task is to put together an operational plan to take account of the new situation to ensure that Air France can weather the storm. You should emphasize operational and financial issues, with a strong focus on the fleet, routes and resources. You should prioritize carefully by identifying the critical factors for survival. Your plan should consider the short, medium and long-terms. You should consider the likely outcomes of your proposals and assess the risks. The assignment should be written in the form of a report and recommendation to Air France senior management. Instructions: - the form of of the paper must be a report and recommendation to Air France senior management. - the report should be about air France only, not about airlines or air travel in general There must be evidence of the following: -The brief has been fully met -Critical understanding of the key issues -Critical analysis of background issues -A wide range of practical examples in an evaluative style -Extensive use of original thinking and ideas -A wide range of relevant and recent reading -A clear, concise and well-structured approach -Comprehensive bibliography and referencing -An excellent standard of English
Surviving the Economic Crisis Name Course Date of submission Due to the current economic crisis there is a high possibility that air travel business will be highly affected. The market trends show that that approximately thirty percent of the clients supposed to travel this month will either cancel their trips or not travel at all. This could affect the business of France airlines permanently if the situation is not well dealt with. The time duration for the current economic crisis is uncertain and the company has to take adequate measures to deal with the issue permanently. In the current situation the company will be negatively affected by the crisis and might lead to great loss in the company and possibly failure and eventual closing of the company. A good example of the effect of an economic crisis on air travel companies is the Kingfisher Airlines in India which was forced to close after it was hit hard by the economic crisis. There is therefore need to maximize on the few people travelling. As much as we need to keep our services up to standard we also need to check on the costs that we incur in during the economic crisis. The crisis has led to great inflation I some of the most valuable commodities. The increasing prices of oil has greatly affected the air travel market and increased the costs incurred in every flight. On the on the other hand the fact that most of the travelers also affected by the crisis means that we cannot increase the prices of travelling or we will lose most of them. In order to survive the crisis without negatively affecting the income and quality services incurred we have to stand out in the European air travel business. We have to make wise decisions that will lead to an increase in the number of clients using our airline and minimize the cost of every flight. One of the ways to ensure that we keep the company in good business despite the various challenges there are in the sector is to manage the trips we make. The money made in each trip should cover for the fuel charges and other costs incurred during the flight and leave some money for the profit of the company. During the economic crisis many of the trips are likely to be canceled. This means that many of the routes might not get people to fill the plane to the maximum. If the plane is not filled then the plane might not pay for the cost incurred during the flight leading to losses. One of the ways to adequately deal with this situation is to change the routes used by the planes to include various stop-over before reaching the main point. This will enable the company to accommodate people travelling to various destinations to use one plane which will minimize the cost. This will mean that the planes will be filled by the passengers to various destinations other than the main destinations. This will help in reducing the cost incurred in every plane. The move will minimize the number of unoccupied seats despite the various tickets being canceled thus redu...