Airlines and Airports: Finance and Forecasting Methods Analysis Report

This report provides an in-depth analysis of finance and forecasting methods for airline and airport operations. It begins with an estimation of market share, mix, and average yield of passengers, including a trend analysis of passenger numbers over time, utilizing linear regression. The report then delves into the marketing mix, detailing the 4 Ps: product, price, place, and promotion, and how they are applied within the airline industry. The product section focuses on seat sales and related services, while price strategies are examined in relation to competition and customer affordability. Place strategies cover hub locations and market reach, and the promotion section highlights loyalty programs and various promotional techniques. Furthermore, the report addresses branding, market positioning, and service aspects, using the Boeing 787 as a case study. It covers branding strategies, market positioning through value proposition, and service elements, including amenities and charter flights. The report concludes with references to relevant research and publications supporting the analysis.

FINANCE AND FORECASTING METHOD FOR
AIRLINES AND AIRPORTS OPERATIONS

2. Estimation of market share, mix and average yield of passengers
• Estimated Market share:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
0
50000000
100000000
150000000
200000000
250000000
300000000
350000000
f(x) = 5948213.72019704 x + 104347894.921182
Year Terminal passengers Linear (Terminal passengers)

Trend
Estimated passenger Forecasts Trend
2019 0.01211401 233315482.7 282794306.5
2020 0.01212001 7898281.058 249232476.8
2021 0.01212601 5861290.663 215947223.5

Marketing mix
4 p's of marketing mix of airline industries
Marketing mix consist of 4 ps which generally cover the product place price and promotion
which are necessary elements required in marketing of any product and services by the company
in order to expand and growth of the products and services. The four p's are explained below:
• Product
• Price
• Place
• Promotion

PRODUCT
• The CAA have the seat selling on their flight as the major product category in the
marketing mix along with Hotel room bookings, cars, vacations activities and cruises,.
• Seats are available on the category basis say business class, first class, premium,
economy class and choice class.
• The company is providing the passenger transport services. Their aim is to provide the
products and services which have the capability of satisfying the need and wants of the
customers so that they can retain the customers for long and able to generate the great
brand value among the customers and in complete airline industry.
• CAA needs to focus on maintaining quality of product and services.

PRICE
• The company is leading in airline industry with a pricing strategy based on the competition
and sector they cover.
• CAA needs to keep the price which is affordable by the customers as they are the only who
are ready to purchase and buy the products and service of the company so it is necessary to
satisfy their needs and wants in all respect.
• Customers do not compromise with the quality so the company needs to consider the basic
things while setting the price is depends on the length of the journey and the amount of time
the travel will take premium pricing is initially done by the company in order to target the
business class passengers as they having high tendency to pay and avail the premium
services.

PLACE
• CAA has major hubs in different area through which they are able to capture the larger
area of the airline industry as company needs to focus on the areas whether there is very
less reach of other competitors so that by adopting effective strategies and initial
investment they can cover the new area and place where the customers seeks to avail the
airline services.
• For this purpose and effective research and development is required by the company so
that they able to know the target place and customers and accordingly can cover the new
places which helps them in retaining the customers for long and in also generating the
strong brand value.

PROMOTION
• This is the most important and crucial among all as marketing mix as ion the basis of
promotional techniques the company is bale to generate more and more customers
towards their organisation. CAA provides advantages loyalty programs through which
flyers can redeem the points for very miles travelled. This also is used as the promotional
techniques.
• There are may different ways through which company can promote their products and
services. They can take the use of media, internet, billboards, hoardings, social media,
programs, events and many other which ultimately help the company in attracting more
and more customers which result in earning higher amount of profit and which helps in
achieving the overall organisation goal effectively and efficiently.

3. Branding, market position and product
Branding
• Branding is very important for Houston airline with use of Boeing 787 as effective
airline brand strategy initiates with notion that one could differentiate the commodity.
• This would use Boeing logo, copyrighted and trademarks materials.

CONTD…
• This is graphic signature which comprises it symbol and could be used through written
permission from Boeing and application of authorized Boeing artwork.
• Apart from this, there would be presence of sponsorship of different events, projects and
organizations which resonate with business and strategies of brand for purpose of
enhancing its brand presence with partnership and visibility with their customers, key
stakeholder, communities and employees through the business.

CONTD…
Market positioning
At the first step, defining level and content of its value proposition and appropriate
determination of level of price, implementation of the communication campaign and level
of distribution of value proposition.
• It will be setting objective to lay emphasis to facilitate passengers and goods travelling
on level of transition.

CONTD…
• Availability of numerous mobile applications customers could use to track things such as
travel and tour operators throughout the world, optimal routes, navigation charts, weather
updates and airport facility information.
• International branding and marketing programs which will advertise with logo of Boeing
in new markets for services through business to business promotions, trade shows,
consumer incentive programs, social media etc.

CONTD…
Service
• Luxurious, comfortable and affordable service with best quality
• Sky cap services for baggage assistance
• Inclusion of charter flights with various destinations.
• High level of safety and service, carefully selected routes, convenient schedule
• Modern, safe and comfortable aircraft and niche market services
• Multiple service oriented amenities for enhancing travel experience and free WI-Fi

REFERENCES
Tang, C. S., Zimmerman, J. D. and Nelson, J. I., 2009, January. Managing new product development and
supply chain risks: The Boeing 787 case. In Supply Chain Forum: An International Journal (Vol. 10, No.
2, pp. 74-86). Taylor & Francis.
Wagner, M. and Norris, G., 2009. Boeing 787 dreamliner. Zenith Press.
Kotha, S. and Srikanth, K., 2013. Managing A Global Partnership Model: Lessons from the B oeing 787
‘Dreamliner’Program. Global Strategy Journal. 3(1). pp.41-66.
Paltenghe, C. T., Citicorp Developement Center Inc, 2004. Digital graphic signature system. 6. pp.757-
826.
Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the
balance right. In Social Marketing (pp. 29-43). Psychology Press.