Flamingo Airlines Business Plan Analysis

This assignment tasks you with critically analyzing a detailed business plan for Flamingo Airlines. The analysis should cover various aspects of their operation, including their adoption of a low-cost business model, strategies for managing their fleet of aircraft (both owned and leased), and how they adjust flight schedules based on seasonal changes and weather conditions. The plan also highlights the airline's target market, focusing on business travelers and the potential impact of ancillary revenue streams.

AIRLINE MANAGEMENT

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
BUSINESS MODEL.......................................................................................................................4
AIRLINES MAIN BASE................................................................................................................5
ROUTE NETWORK AND DESTINATION..................................................................................6
THE AIRLINE’S FLEET................................................................................................................6
USE OF ANCILLIARY REVENUES............................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

EXECUTIVE SUMMARY
In the present scenario, when people are not having much time to travel through train and buses,
they prefer to travel from flights. Thus, it is necessary that airline companies will understand the
airline management which is a branch of study that tells about the systematic management of
airport and airlines. Through this, a broad overview of the airline industry will be gained that
would increase the awareness of operational, marketing, financial and other factors that highly
impacts the airline management of firms. Flamingo as the new domestic flight has been
introduced in London. If one passenger has the connecting flight it even does not transfer its
luggage to other flights. So in most of the cases the direct flight is used by the passengers.
Besides this, to earn profit flamingo is also adopting different practices like they are developing
the cost terminals which will provide convenience to the airlines which are low cost and do not
have finance to pay to the airport. The flamingo is the domestic flight so their bases are many. In
the initial stage the base of this airline is Heathrow but it is planning to change its base. There are
many airlines which are flying from this destination so it takes time for the flamingo to make
place for this flight. This airline has a number of key factors that have mitigated it towards the
rising top list of airlines. This airline will become of the first choices for customers as it is having
number of reasons like it has relatively low per seat acquisition cost as well as low per passenger
mile cost. It has also given their added capacity over smaller regional jets. A very high amount is
earned by the firm through baggage fees and from on-board food and services. However, airline
has to bear high cost as well because providing these facilities demands investment.

INTRODUCTION
In the present scenario, when people are not having much time to travel through train and
buses, they prefer to travel from flights. Thus, it is necessary that airline companies will
understand the airline management which is a branch of study that tells about the systematic
management of airport and airlines. Through this, a broad overview of the airline industry will be
gained that would increase the awareness of operational, marketing, financial and other factors
that highly impacts the airline management of firms. In the present report, there will be a
business model of a brand new airline along with the main base of airline. Also, the route
network and destinations as well as the airline’s feet and use of ancillary revenues will be
highlighted. Apart from that, a realistic schedule for the fleet will be included in the report.
BUSINESS MODEL
Flamingo as the new domestic flight has been introduced in London. The business model
which has been adopted by this flight is the low cost model. The fair of the airline is less and the
comfort which it is providing to its customer is also less. The main aim of this airline is to earn
profit but in the slower time as the major strategy of the flamingo airline is to increase its air
traffic and establish its name in the competitive market. There are no differentiated seats
provided to the passengers. In this type of airlines only the normal seats are provided. To
increase the air traffic the flamingo airline has been focusing on increasing the destinations. It is
the low cost airlines it flies to many destinations and it has more than one base. According to the
business model which is low cost model it does not provide many types of facility to its
customer. The flamingo flight is the direct flight as it does not hope from one destination to
another. No two way ticket is provided to the passengers and even the tickets are not booked
before 3 months. If one passenger has the connecting flight it even does not transfer its luggage
to other flights. So in most of the cases the direct flight is used by the passengers. Besides this, to
earn profit flamingo is also adopting different practices like they are developing the cost
terminals which will provide convenience to the airlines which are low cost and do not have
finance to pay to the airport. Further, the overhead cost which is incurred is passed on to the
customer and it is added in the ticket this becomes suitable for the flamingo. Further, in the
business model plan the expected human resource to be recruited in less as they are not providing
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any facility so there is no need for additional workforce. If any of the passengers needs
additional services like food, or other services it will be chargeable.
The operations which are carried by this flight is one to one as they only provide the
benefit for travelling in air but regarding the airline no other facility is given. Further, this model
majorly focuses on the price of the competitors. The flamingo airline can change its price
according to the change in competitor’s price. The main focus is on the customer traffic so it will
not allow their passengers to switch to other flights. Besides this, in the low cost airline the
flamingo will prefer to use those airports that have become abandon and they do not charge high
price for the landing. Further the pricing policy of the flamingo is also different as it is the lion
cost flight it mainly emphasizes on the promotion and schemes. It will provide different schemes
at time of festival or when there is low season as it will attract the passengers. At that time also it
will gain benefit from the passengers. This model is appropriate because in the recent time all
the flights has become expensive and they are more focusing on the extra services which is
provided to them. So the new plane flamingo will only focus on those individual who frequently
travel and they do not need any type of extra services.
AIRLINES MAIN BASE
The flamingo is the domestic flight so their bases are many. In the initial stage the base of
this airline is Heathrow but it is planning to change its base. There are many airlines which are
flying from this destination so it takes time for the flamingo to make place for this flight. Now it
is planning to take another base which is Manchester as it is considered the main junction and it
is convenient for the flamingo to fly from this base. This base has been chosen because it
provides appropriate parking facility as well as gate facility. This is helpful as it assist in
reducing the time because of this flights are reaching the destinations at appropriate time.
Flaming is a kind of airbus which takes the passengers and drop to different destination. It flies
regularly in London. Further, to visit the farthest destination it takes maximum 2 hours. So this is
the non- stop flight which and it is very helpful for the passengers. Even the crew members who
are working in the airlines are also less so they require other human resource to help them to
provide basic facility to their passengers. According to this scenario, Heathrow is selected as
there are many flights which land so they can take help from the other flights crew members. The
flamingo flight is getting the support from the airport authority on the operations which are
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doing. This is supporting the airlines as well as the passengers. Even the weather conditions is
also the main reason for keeping the base as Heathrow because the flights are generally cancelled
because of the weather as it is even considered that in London there is cloudy weather. This area
is safe and the weather effect is also less. Even this flamingo airline has also other different
airlines which are used for carrying cargo as for this also this airport is best. Further all the
taxation and different regulations have supported the operations of flamingo airline. Even the
interline transshipment can also be done easily so for the new airlines these all facilities are very
useful and help in smooth functioning. As it is the low cost airline so it is essential to have link
with the passenger travel and the cargo as it will help in saving the money. Besides this,
flamingo is planning to change its base destination. For all the flights they are planning to have
different destinations. This will help in reducing the problem in delay of the flight. If it changes
the destinations then flamingo can easily manage their schedules which will bring convenience
to the customers.
ROUTE NETWORK AND DESTINATION
As the flamingo is the domestic flight so the route network of the flight is expanding in
whole UK. There many destinations which are covered by flamingo but there are majorly 4
airports in the London. The route network is decided according the distance as the airport are in
the mid of the city. Further, it is very helpful for the cargo as because of 4 airports it is help for
the passengers. With the help of flamingo the passengers will feel comfortable as they will get
cheap airline to fly within the city. Further the flamingo also has charter plane so they serve
different destinations outside UK. But it is special plane so the ticket of this plane is expensive
and it caters the passengers who have special purpose to visit the destination. There are several
destinations which are covered by flamingo airlines. As the major the destinations are located in
the mid of the London. So the main destinations which are scheduled are the popular cities of
England. As there are many aircrafts but the destinations in which the airline travel are different.
The main cities which are included are Peterbourgh, Southend, Marham, Honigton, etc. The
route which has been planned for this charter is only the short routes as they visits only those
cities which are nearby to UK or that country in which the flight can reach in maximum 3 hours.
Other than this, after some years the flamingo airlines have planned to introduce its services
outside the UK in which they will majorly focus on Europe. The flamingo airline can get
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maximum passengers from there. The routes which are planned by flamingo are appropriate and
it is serving many of the passengers as well as visiting cities. It has been estimated that it will
earn huge profit if it fly regularly 24 hours in the UK city.
THE AIRLINE’S FLEET
There is the primary issue regarding sourcing that is the type and source of aircraft which
is to be employed in the new airline’s fleet. The total number of selected airline’s fleet is 50.
There are many types of aircrafts present that airlines are using, however, Flamingo Airline is
using four kinds of aircrafts which are:
 Airbus
 Boeing
 Charter
 Premium
This airline has a number of key factors that have mitigated it towards the rising top list
of airlines. This airline will become the first choices for customers as it is having number of
reasons like it has relatively low per seat acquisition cost as well as low per passenger mile cost.
It has also given their added capacity over smaller regional jets. Along with that, airline will be
having high reliability factors in its newer versions. Flamingo Airline will have complete pilot
and maintenance intercompatibility along with providing flexibility in flight. Apart from that,
airline is having the advantage of reduced training and simulator costs. Also, this airline has four
engine configurations which offer it an added safety factors that proves to be highly beneficial
for the Flamingo Airline to become the most preferred airline of the nation.
The aircrafts of this airline are made available through both the sources that are from
lease as well as on purchase basis. Some of the aircrafts have been purchased from EasyJet and
rest is taken on lease for a specific duration. These aircrafts are providing spacious and
comfortable cabin interiors that offer the only seat, aisle and overhead bin. Reason behind
choosing these four types of aircrafts is that Flamingo Airline has chosen Airbus and Boeing
because it is a domestic airline and providing maximum services to the middle class people of
nation. These are the economical flights that offer its services as reasonable rates and earning
maximum profits and revenues through this class. These aircrafts carry large number of
passengers and does not offer any complementary service.
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Apart from that, Charter aircraft is just for some special customers which is for a single
person only and comes under the luxury class that is highly expensive. Along with that, lots of
luxury services are provided in this aircraft. In addition to this, in the premium aircraft of
Flamingo Airline, only a few numbers of people can travel as well as it provides extra services
like food and beverages as well along with the entertainment services but at a high cost.
USE OF ANCILLIARY REVENUES
As Flamingo Airline is a low cost carrier that is operating in Europe, it is gaining revenue
from the non ticket sources. A very high amount is earned by the firm through baggage fees and
from on-board food and services. However, airline has to bear high cost as well because
providing these facilities demands investment. Company earns this revenue from the sale of
tickets as well that is generated by the direct sale to passengers and sometimes, from indirect part
of the travel experience. This is revenue proves to be very helpful in making the airline a
profitable one as this is necessary to run its operations in an effectual way. Apart from that, other
locally established retail travel agencies also serve as a base for Flamingo Airline and offer it the
growth potential. Apart from that, the major profit of the airline is gained through the services
which are provided by to the customers. As almost all the important cities are covered in the
schedule. Besides this, the services is rendered to so many cities so the ancillary cost is also high
as there are many indirect ways through which Flamingo can get the income.
Realistic schedule for the fleet with given considerations
Considerations Ascertained
figures for
Boeing
Ascertained
figures for
Charter
Ascertained
figures for
Airbus
Ascertained
figures for
Premium
The number of
aircraft in the
fleet
12 20 8 10
Number of crew
members to
Pilot: 3 Pilot: 3 Pilot: 3 Pilot: 4
5

operate each
aircraft
Cabin crew: 20 Cabin crew: 18 Cabin crew: 9 Cabin crew:
30
Destinations of
the planes
It flies to
Peterbourgh,
Southend,
Bromley,
Liverpool,
Denton,
Dunsfold
It covers
Bembridge,
Crawley, Estone,
Lacing,
Woolsington,
It files to more
than 20 places
like Luton,
Marham,
Honigton,
Cambridge etc.
This plane
covers only
3-4 places
Brackley,
Derby,
Worksop. It
covers the
areas of east
London.
Schedules of the
plane
It flies from
Peterbourgh to
Bromley at 8.00
hrs.
Liverpool to
Bromley at 12.35
hrs.
Southend to
Peterbourgh at
14.35 hrs.
Bembridge to
Crawley at 9.45
hrs.
Crawley to
Woolsington at
17.25.
Lacing to Estone at
19.00 hrs.
Estone to
Woolsington at
22.05 hrs.
It is flying
continuously to
more than 20
destinations.
Luton to
Cambridge at
7.00 hrs
Marham to
Luton at 18.30
hrs
Brackley to
Derby at 9.24
hrs.
Worksop to
Brackley at
14.25 hrs
Derby to
Worksop at
10.22 hrs.
Maintenance Schedules
Internal and After every visit. After every visit. After every After every
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external
cleaning:
visit. visit.
Oil changing: Every day. Every 5 days. Once in 2 days Every 10
days.
Checking of fleet
parts:
After every 10
days.
After every 5 days Once in
fortnight
After every 5
days
Safety
monitoring:
Twice in one
month
Once in one month Twice in one
month
Once in one
month
Seasonal changes
During Summer 7 out of 12 will
fly and will
depend on
number of
passengers
booking only.
Only 10 out of 20
will fly as because
of its high fares,
less possibility;
especially business
class passengers
will be there.
5 out of 8 which
may modify to
full on full as
well depending
upon the
number of
passengers
again.
5 out of 10
will fly only
because of
high class
passengers
and fare rates
applicable for
this category.
During Winters 8 out of 12 due
to number of
passengers’
bookings. As this
is same as
mentioned above
for summer.
This will be
increase to 15 out
of 20 as compared
to summer as
possibility of more
number of booking
has been
determined.
5 out of 8 but
may vary
according to the
number of
passengers.
Same as
above.
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During Heavy
rains
Due to
unfavorable
whether
condition;
bookings may
vary and hence
tends to fly only
5 out of 12.
Due to impact of
rain, this may also
need to fall to the
number up to 8 out
of 20.
Heavy rain may
affect the fleets
and hence need
to balance. Only
5 out 8 will be
flown.
This will be
reduced to 3
out of 10
fleets by
considering
risk factor
into
consideration.
During holidays Due to heavy
passengers and
discounts on
holiday package,
12 on 12 will fly.
Due to heavy
passengers and
discounts on
holiday package,
20 on 20 will fly.
Due to heavy
passengers and
discounts on
holiday
package, 8 on 8
will fly.
Due to heavy
passengers
and discounts
on holiday
package, 10
on 10 will fly.
CONCLUSION
From this business plan it can be concluded that flamingo airline will be very helpful for
the passengers as it will majorly assist the passengers who are travelling regularly for the
business meetings. Further, it has many plans to introduce new services and to cater destinations.
Even it has adopted diverse practices which are fruitful in earning profit. This can also be
inferred that many fleets have been purchased as well as there are many airbuses which have
been leased by other airlines company. Lastly, it can also be concluded that in this competitive
environment it is best decision to introduce low cost airways.
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REFERENCES
Airline management. 2016. [Online]. Available through:
<http://ocw.mit.edu/courses/aeronautics-and-astronautics/16-75j-airline-management-
spring-2006/>. [Accessed on 14th April 2016].
Ancillary revenue. 2016. [Online]. Available through:
<http://www.businessdictionary.com/definition/ancillary-revenue.html>. [Accessed on
14th April 2016].
Low cost business model. 2014. [Online]. Available through:
<http://www.sciencedirect.com/science/article/pii/S0969699714001501>. [Accessed on
14th April 2016].
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