Discuss the three products to determine which would make the Low-Cost Airline, GriffJet, deliver a financially sustainable and competitive offering..
Written Assignment 2: Business Development of a Low-Cost Airline ‘GriffJet’
You are the Manager, Business Development within the Commercial Group of an imaginary Low-Cost Airline called ‘GriffJet’ that has been operating successfully for the past two years.
GriffAir is operating in one of the following regions: Oceania, Asia, Middle East, Europe or North America. It is up to you to determine which region, and so you will need to understand the current air transport situation within the region chosen and collate information on existing airlines that operate there.
There are three types of unbundled flight products that you have been asked to investigate by senior management:
- Fees for changing or cancelling a flight
- Baggage fees
- Seat reservation fees
Using the knowledge gained in this course and Written Assignment 1, incorporate your knowledge of the key management approaches that need to be considered.
Discuss the three products to determine which would make the Low-Cost Airline, GriffJet, deliver a financially sustainable and competitive offering. It may be that none, some or all of the products would be worth implementing. Students should consider the nature of the fees, such as the level of charge levied on passengers.
Present your response to the assignment question in Report format and at the end of the report offer three recommendations to address the issues discussed.
This briefing document provides more details on the assignment including marking criteria. Make sure you read through this document carefully before starting the assignment.
How to Submit: Click on View Assignment in the Submission point and then click on Submit.
Questions and Answers
Here are some common Questions and Answers from 3522NSC students about Written Assignment 2, either this year or in previous years.
- Which other airlines should we consider in the region?
Low-Cost Airlines are more relevant, but you also need to be aware of other airlines (e.g. Full Service Network Carriers) within the region plus leading global airline examples.
- Can I identify a country and/or airport where GriffJet would be based?
Yes, you could identify a country and/or airport where GriffJet would be based. This is particularly true in some of the larger regions within the assignment brief, such as Asia, which have a number of sub-regions.
- What assumptions can make be GriffJet’s current fleet?For example if they are operating short-haul aircraft, or if I have some freedom to be creative as to what fleet the airline currently operates.
I am fine for some assumptions about the airline, such as the fleet. Just make them realistic for a relatively new airline.
- Can we use more than two management approaches over the three unbundled products, or do we use the same two for each one?
It is up to you the number of management approaches you use in your response. Clearly more is better although they do need to be applied appropriately. A systematic and logical approach usually helps too.
- Is GriffJet, as an LCA, looking to introduceall or some of the three unbundled flight products given (after analysis), or does the CEO want to differentiate the airline product by assessing whether GriffJet can removesome or all of these products? I suspect it is the former.
I’m assuming that GriffJet has been established over the previous two years and is then considering introduction of the fees (or not). Therefore, the former is correct.
- Can we describe alternate means of revenue sources to maintain a competitive offering?
As a starting point, you need to investigate the three types of unbundled flight products mentioned in the assignment brief. If you find other products or offerings that would be a better recommendation in the region examined, then feel free include them. You need evidence though.
- How should we frame the recommendations?
The recommendations should be as specific as they can be. It depends on the data available and the confidence you have from it in making a recommendation. If there is little data, then something like “introducing baggage fees” might be fine. If there is a lot of information available, then a specific dollar value (e.g. $10) is also valid. An alternative might be to provide a range (e.g. recommend between $5 and $10).
- We are to recommend product changes that are financially sustainable. How much financial information do we advance into?
There should be some financial understanding, such as the implications of increasing or decreasing fees, but there is not the word count to go into more financial information.
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Discuss the three products to determine which would make the Low-Cost Airline, GriffJet, deliver a financially sustainable and competitive offering.