Air Transport Management Report: Full-Service and Low-Cost Carriers

This report examines the organizational and management structures of full-service and low-cost carriers within the air transport industry. It details the key differences in their operational approaches, including how they manage resources, deliver services, and compete in the market. The report the...Read More

Air transport Management

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Table of Contents
Answer 1.....................................................................................................................................................2
Answer 2.....................................................................................................................................................3
References...................................................................................................................................................4

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Answer 1
a. The organisational structure of airlines depends on the desired size of the concerned airline,
and it also depends on whether the airline is a public traded- company [2]. The large airlines
push the workload responsibilities as well as the accountability down to different subsections. It
has been seen that most of the airlines maintain control over daily's operations with the help of
front-line managers as well as their subordinate supervisors.
The management structure of the full-service carrier helps in delivering all of the series to its
customers within the price of the ticket. These services include flight entertainment, meals,
checked baggage as well as blankets along with another type of comforts. Their management
strategy includes the operating of a low-cost subsidiary carrier for defending their concerned
market shares against their competitors within the market segments.
b. The organizational structure of the low-cost carrier includes a CEO, executive chairman,
commercial, division B, C and operations [1]. Furthermore, the commercial is divided into three
subdivisions as cabin crew, training manager and the function department.
The management structure of the low-cost carrier includes fewer members such as the aircraft
and the cabin crew to reduce the services for the passengers that helps in lowering down the
costs of the tickets. The primary motive of the management team for the low-cost carriers is
straight forward delivery, and the services are operated by less number of staff members.
Figure: Management structure

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Answer 2
There are a few of the crucial steps for developing a business plan; they are as follows:
1. Executive summary
2. Analysis of the market segments
3. Developing financial projections
4. Organisational structure
5. Products or services
6. Summary of the entire business plan
Significance of each step involved in the business plan:
The executive summary helps in evaluating the specifics of the concerned business such as the
name, type of business and the processes that will be covered throughout the business.
Market segments significantly reflect the evaluation and identification of the target audiences,
and this helps in validating the idea for the business [3].
Next is the financial projections, whose significance is to map out the financial data and the
progress for the execution of the business.
The organizational structure signifies the members those will be involved to execute and perform
the business.
The products or services significantly reveals the offerings that will be delivered by the
organisation.
Finally, the summary of the business signifies the importance of the systematic way and
procedure for the new venture.

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References
1 Puranam P, Maciejovsky B. Organizational Structure and Organizational Learning. SSRN
Electronic Journal Published Online First: 2017. doi:10.2139/ssrn.2963250
2 Mwangi E, Wekesa D. Influence of Economic Factors on Organizational Performance of
Airlines: A Case Study Kenya Airways Ltd. IOSR Journal of Humanities and Social
Science 2017;22:08-14. doi:10.9790/0837-2205050814
3 Lin E. The Business of Bariatrics: Creating a Business Plan. Bariatric Surgical Practice and
Patient Care 2019;14:1-2. doi:10.1089/bari.2019.29015.el