AERO2358 – UAS Operations
AERO2562 – Aircraft and Air Transportation
Assignment 1
Semester 1, 2020
AERO2358 – UAS Operations
Unclassified
School of Engineering
School of Engineering
Unclassified
Status: DRAFT
Version: 0.1
DocRef: TRIM
Document: RMIT Assignment 1 AERO2562 2018.docx
Author: Alex
Save Date: 04/05/2020
Page 2 of 4
Introduction
Please answer each question featured. Technical questions can be hand written in a neat and legible format and scanned into PDF format. Please compile a SINGLE pdf file for final submission. Multiple files will not be accepted. For any queries please contact the course coordinator
[email protected].
Each question has a mark allocation specific to the question.
Submission details
· Maximum Marks = 150
· Due Week 7 – 20th April 23:59 hours
· Submission through Blackboard Portal
Questions that require calculation can either be done by hand calcs or through the equation editor in word. Hand calcs must be submitted with the overall assignment. Please scan the calcs if you choose to do it this way however please submit only one document. Multiple documents will not be accepted.
Questions
1. Airlines can operate under various forms of business structure. Understanding how airlines work is crucial when entering the Aviation industry. Choose an International Airline and with the aid of books, journals, magazine articles and other resources;
· Explain the purpose and objectives of full service network ca
iers (FSNCs).
· Analyse and discuss the business model developed and utilised by the airline in terms of the airline’s operations, fleet types/structures, product/service offerings and route networks.
Criteria
· Appropriately use the Harvard Reference Style Manual.
· Maximum of 1000 words
· Present information in a logical, systematic and integrated manner.
(30 Marks)
Ans1.
FSNCs or Full service network ca
iers, as the name suggests focus on providing a vast range of services related to air travel like pre-flight, on-boarding, connecting flights etc.
As opposed to LCC (Low cost ca
iers) they don’t charge for extra services but provide them for free, with charges being included in tickets whether we avail the services or not. Generally Full service ca
iers have different service classes like economy, business and first class.
FSNCs are more traditional in nature and follow a hub and scope model, while focussing on the strategy of concentrating on major hubs and off-loading peripheral routes (Benitez and Lodewijks, 2008, p. 9).
The incentives to use hub and scope model stem from various commercial and legal reasons. A rise in origin and destinations (O&Ds), also leads to rise in load factors and thus yielding lower unit costs per passenger.
Also with given number of flights airlines can serve more O&D markets via bundling and reallocation of incoming and outgoing airline passengers at the hub airport. Besides hub ca
iers tend to gain market power on their respective hubs, allowing them to reduce competition and to charge so-called hub premiums. There are several downsides too of hub and scope model like ‘complexity of connecting flights in tight time frames, high capacity utilization during the peaks of a
iving and departing flights and consequent delays’ (Analyses of the European air transport market Airline business models, p.9).
Thus FSCNs are characterised by typically large scale and adopt a strategy of differentiation by offering services in bundled form. These include features such as flexibility in flight schedules, in-flight services like on board meals, lounge access, network connectivity and convenience.
An example of a full service network ca
ier will be Air New Zealand.
Air New Zealand has a fleet of over 100 aircrafts totalling 114 in total. With operating aircraft sizes varying from Bombardier Q300 to Boeing 777-300, it has vast operational range over both domestic and international market.
Airline follows a hub and scope model with major hubs being Auckland airport, Christchurch international airport and Wellington International airport. Some of the key international markets include United states, Singapore, Hong king and china with competitive advantage being within the Pacific Rim.
Air New Zealand provides passenger and cargo services to, from and within New Zealand. Like other FSCNs it offers a Loyalty programme which has resulted in a membership of over 3 million users with Air New Zealand.
Apart from this, Air New Zealand is in process of cost reductions through a sustainable cost improvement plan. This includes inclusion of more fuel-efficient aircraft providing the airline with an extremely competitive cost structure. Air New Zealand Limited (2020). About Air New Zealand, Retrieved from https:
www.airnewzealand.co.nz/about-air-new-zealand.
Reference list:
1. Benitez and Lodewijks, 2008,...