Air Transport Economics - Business Plan for New Entrant Airline

AIR TRANSPORT
ECONOMICS - BUSINESS
PLAN FOR NEW ENTRANT
AIRLINE

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
Executive Summary.....................................................................................................................3
Market Audit................................................................................................................................3
Situation in Market......................................................................................................................4
Hamburg Airport as the chosen Airport for this study................................................................5
Hawai Airlines.............................................................................................................................6
Internal Analysis..........................................................................................................................7
Marketing strategy.......................................................................................................................8
Segment Analysis........................................................................................................................8
Product Positioning......................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The current report will discuss about the business plan of a new organisation called as
London Hamburg route. The organisation will place its headquarter in London, United Kingdom.
Company will currently be planning to start with one route between London to Hamburg.
Company aim to dominate the entire market with its influence presence and aim to make air
travel more convenient for all types of customers. This project is all about disclosing the business
idea of the organisation. Henceforth, report will emphasis on the complete business plan in
context to the organisation. A complete detail about the business and the business idea will be
discussed in this project.
Executive Summary
The Hawaii Airline is a low cost airline that wish to offer a most convenient air travel to
all types of target customers. Company aim to make travel more economical which will further
maximise the overall scope of the entire industry. It was concluded that the company is a new
entrant in the market but organisation wishes to hold a very influence power in the sector that
will cater the dominance to the organisation in industry. Also, management of Hawaii Airline
aims to reduce the distance and make the world more connected towards each other.
Market Audit
Aviation sector identified as one of the major area the world is looking forward. As the
industrial pace constant level of competition in the industry make the world more connected and
require time effectiveness when it comes to travel. The constant rising need and demand of
aviation sector further increases the air traffic. Currently the United Kingdom own the 3rd largest
aviation network. In Europe United Kingdom hold the first position in term of air traffic.
According to study aviation sector in United Kingdom contribute almost 3.4% of the entire
economic activity occur in the country. Currently the aviation sector of United Kingdom is
holding a growth rate of almost 5% which clearly reflect the rapid growth of the sector ( Chang
and et.al., 2021). As per the studios it is identified the fact that in United Kingdom almost 40
million people travel by air that is massive in number and further this also increasing every year
with the pace of rising demand in industry. Pandemic has created negative impact over the airline
industry but government start allowing people for travelling and this might assist the whole
industry to grow rapidly. Per capita income in United Kingdom is further rising approximately at

a rate of 6% which will further allow the aviation sector to cater more number of potential
customer every year. Per capita income clearly reflects the buying power of the target customer
and due to its constant rising nature more number of passengers would possible be travel by the
air. Market is open in the industry which offer even to a new entrant to hold a strong position in
the market. Hamburg Airport is the fifth busiest commercial airport in Germany. The data clearly
reflect the possibility of this airport to attract the air travel every year (Due, Nhamo and
Chikodzi, 2021). Low cost airlines always carry the opportunity to attract more number of
customers in comparison to the other commercial airplanes. Customer across the globe wish to
travel in low cost as this would certainly save the finances. After the year 2000 low cost airlines
could complete change the whole synergy of the United Kingdom aviation sector. This could
allow more number of travellers and people to travel in the air.
Situation in Market
In the current situation there are a certain number of airports hold a direct flight to
Hamburg. Flights from London Gatwick, London Heathrow, London Stansted, Manchester and
Edinburgh hold a direct flight to the Hamburg. There are list of airlines companies who run a
flight in between the United Kingdom and Hamburg which comprises to Easyjet, British
Airways, Eurowings, Ryanair and Easyjet. Both Ryanair and Easyjest hold the flights to travel
between United Kingdom and Hamburg. Almost every flight between United Kingdom and
Hamburg take 1 hour and 45 minute to make a reach at the Hamburg airport (Gungor, 2021). The
constant rising rate of per capita income in United Kingdom will certainly allow the aviation
sector to cater more number of potential travellers every year. Low cost strategy is a well
suitable tactic and strategy that new entrant associated with aviation industry of United Kingdom
to grow and succeed in the market place. Hamburg Airport is one of the busiest airport in
Germany which clearly reflect the significance of the destination. People in developed nation
like to travel from air as it saves a huge amounts of time. Especially for the international trip air
travel is the most suitable, convenient and time saving mode of travelling. Also the research
show that air traffic between United Kingdom and Hamburg or different locations of Germany is
increasing every year at a rate of approximately 6% which is carry stating the market situation
(Trends, challenges and opportunities in the Hamburg Metropolitan Region, 2021).
Air traffic become the fundamental basis for the airlines companies to operate business.
Recently due to the covid pandemic the air traffic got stopped at a huge level as international