Assessment 1, Case Study – Comfort Air plc

Business & Finance – Marketing Marketing Assignment

Assessment 1, Case Study

ComfortAir plc.

Case Study Briefing

Few inventions have changed how people live and experience the world as much as the invention of the airplane. During both World Wars, government subsidies and demands for new airplanes vastly improved techniques for their design and construction. Following the World War II, the first commercial airplane routes were set up in Europe. Over time, air travel has become so commonplace that it would be hard to imagine life without it. The airline industry, therefore, certainly has progressed. It has also altered the way in which people live and conduct business by shortening travel time and altering our concept of distance, making it possible for us to visit and conduct business in places once considered remote.

The airline industry exists in an intensely competitive market. In recent years, there has been an industry-wide shakedown, with far-reaching effects on the industry’s trend towards expanding domestic and international services. In the past, the airline industry globally, was at least partly owned by governments. This is still true in some countries, but increasingly all major airlines have come to be privately held. The industry has many characteristics e.g:

· International – 130+ seat planes that have the ability to take passengers just about anywhere in the world. Companies in this category typically have annual revenue in excess of $2 billion.

· National – Usually these airlines fly smaller planes and have revenues between $100 million and $1 billion.

· Regional – Companies with revenues less than $100 million that focus on short-haul flights.

· Cargo – These are airlines that generally transport goods. Many global companies like Amazon, have developed their own cargo fleets

Airport capacity, route structures, technology and costs to lease or buy the physical aircraft are significant in the airline industry. Other substantive issues are:

· Weather – Weather is variable and unpredictable. Extreme heat, cold, fog and snow can shut down airports and cancel flights, which costs an airline money.

· Fuel Costs – According to the Air Transportation Association (ATA), fuel is an airline’s second largest expense. Fuel makes up a significant portion of an airline’s total costs, although efficiency among different carriers can vary widely. Short haul airlines typically get lower fuel efficiency because take-offs and landings consume high amounts of jet fuel.

· Labour – According to the ATA, labour is an airline’s No.1 cost; airlines must pay pilots, flight attendants, baggage handlers, dispatchers, customer service and others.

· Landing Slots – These present another significant expense for airlines who fly to popular destinations.

Your brief: You are to take on the role of a marketing consultant for a new passenger airline: ComfortAir plc

The airline is based in the UK and plans to operate on the European passenger sector having secured landing slots from January 2024 in the following Cities : London, Paris, Frankfurt, Milan, Athens, Istanbul, Brussels, and Amsterdam. More landing slots could be added in future years.

ComfortAir will use a fleet of smaller planes of 150 seats, built in China. Designer fitted using quality materials in the cabin, with luxurious look and feel, and intent to serve healthy gourmet sandwiches and fresh fruit juices

 

READ CAREFULLY

Tasks

In your assessment you need to address the following tasks:

Explanation & Answer

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