Analysis of Airline Route and Fleet Planning: Royal Jordanian Airlines

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This report provides a comprehensive analysis of Royal Jordanian Airlines' route and fleet planning, specifically focusing on the potential launch of a new route to Tokyo. It begins by justifying Tokyo as a suitable destination based on its growing tourism and economic potential. The report then examines the selection of the Boeing 787-8 aircraft and assesses its capacity in relation to passenger and cargo demand, emphasizing the importance of flight frequency and passenger comfort. Furthermore, it addresses the allocation of resources, including passenger and cargo distribution, and highlights the significance of operational efficiency. The analysis includes a detailed examination of key operational costs, such as fuel, crew, aircraft, pilot hiring, maintenance, and marketing, providing insights into their impact on profitability. The report concludes with recommendations on whether to launch the Tokyo route based on economic parameters and a personal reflection on the learning experience from the assignment, offering a complete overview of the airline's strategic considerations for expansion.
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Running Head: AIRLINE ROUTE AND FLEET PLANNING: ROYAL JORDANIAN
AIRLINES
Airline Route and Fleet Planning: Royal Jordanian Airlines
Name of the Student:
Name of the University:
Author Note:
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1AIRLINE ROUTE AND FLEET PLANNING: ROYAL JORDANIAN AIRLINES
Executive Summary
The report focuses on the airline route and fleet planning of the Royal Jordanian Airlines. The
report will focus on the route, capacity as well as the allocation of the services to the
customers, which will enable the company to expand in the marketplace and to gain
popularity in it. The study provides an idea about the key cost that are required to operate
effectively in the market. Lastly, the study also provides a clear idea of what is required for
the growth of the company in the marketplace and why the company needs to gain success in
the process along with the reflection regarding the major findings from the report.
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2AIRLINE ROUTE AND FLEET PLANNING: ROYAL JORDANIAN AIRLINES
Table of Contents
Introduction................................................................................................................................3
Airline and Route Selection, Capacity & Allocation.................................................................3
Route......................................................................................................................................3
Capacity..................................................................................................................................4
Allocation...............................................................................................................................5
Key Costs...................................................................................................................................7
Operation Cost.......................................................................................................................7
Recommendation and Conclusion............................................................................................10
Reflection.................................................................................................................................11
References................................................................................................................................13
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3AIRLINE ROUTE AND FLEET PLANNING: ROYAL JORDANIAN AIRLINES
Introduction
Royal Jordanian Airlines is one of the flag carrier airlines which is being operated
from the Queen Alia International Airport. The company consists there headquarter in
Amman, Jordan (Jahmani 2017). The Airline Company is also a member of the Arab Air
Carrier Organisation as well as Oneworld Airline Alliance. The company mainly operates
more than 500 flights per week with a minimum of 110 daily flights. The company was
formerly known as Alia Royal Jordanian Airlines. The company was established in the year
1963 by the late King Hussein. The company was named after the King’s first child Princess
Alia bint Al Hussein (Sweis, Elhawa, and Sweis 2019).
Airline and Route Selection, Capacity & Allocation
Route
Tokyo can be considered to be the best route for the Royal Jordanian Airlines as the
country shows a growth in the tourism and hotel industry. The country possesses 64% of the
International air passenger as the country has become a popular destination for travellers. The
scenic, as well as the historical culture, plays a major role to lure the travellers towards the
country all around the world (Adara.com 2019). These will enable the airline to expand in the
marketplace and to lure many customers from the market. The company will be able to
capture a huge market share as well. These are essential for the growth of the company in the
industry. These will also enable the company to connect with the outer world as well, which
will ultimately let them expand in the market (CAPA 2019). The consumers in recent times
visit the country with their family and friends for a vacation as it has become a famous
vacation spot for the travellers. Therefore, it uplifts the financial position of the organisation
in the airline industry, which is necessary for the company to become successful in the
process.
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4AIRLINE ROUTE AND FLEET PLANNING: ROYAL JORDANIAN AIRLINES
The hotel service is also upgrading which is also a reason for the attraction of the
consumers towards the country for a vacation, and this creates an opportunity for the
company to grow as well as to achieve what they willing to achieve in the process. Hence, it
will be a great route for the growth of the company in the market (Adler, Fu, Oum and Yu
2014). The country also provides a competitive advantage to the country as there is a perfect
competition that exists in the market. So, the company must target Tokyo as its route as it
possesses an international airport and also enables the airline to connect with Japan. These
will be automatically helpful for the company to attract the customers as well as to grow in
the market (Wan, Ha, Yoshida and Zhang 2016). Therefore, it can be said that the company
needs to focus on connecting its flight from Jordan to Japan, which will enable them to
flourish in the international market as well.
Capacity
In Japan, there is a demand for passenger flights as the country attracts travellers all
around the world. The company needs to look after the enhancement of the passenger flight
so that they can carry maximum travellers to the country. The company also requires to look
after the security and safety of the passengers in the process. The company needs to increase
the frequency of passenger flights, which will enhance the financial growth of the company
and let the company generate a high amount of revenue from the market. The company also
needs to focus on cargo flights as well as that will enable the company to carry goods from
one place to the other (Cui, Li, Zhao and Zou 2013). These will enable the company to
flourish in the marketplace and to achieve success in the process. The company also needs to
look after the comfort of the passengers so that the customers are attracted to the company to
avail of the flight from them. These will automatically enable the company to gain what they
intended to achieve in the future.
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5AIRLINE ROUTE AND FLEET PLANNING: ROYAL JORDANIAN AIRLINES
These are a crucial step that could have been taken up by the company so that they
can capture a huge market share, which is only possible if the number of flights increases
along with the frequency. The company wants to operate in a route that is growing in the
market and sustaining in it. The company needs to focus mainly on the number of flights if
they are unable to increase the space along with the frequency of the flights to Tokyo.
Therefore, it can be said that the company needs to look after the capacity along with that
number of flights and the frequency of the passenger flight as the country attracts travellers
all around the world (Fahrner et al. 2014). Hence, these changes in strategy will enable the
company to become successful in the marketplace and to gain success in the process, which
will let the company flourish and gain popularity in the marketplace.
Allocation
The company needs to look after the security of the passenger, and for that, the
company needs to allocate the number of passengers in a flight in an organised way so that
the take-off and landing of the aeroplane are safe. The safety of the passenger can only be
maintained if the company is allocating passengers to the standard limits. These will hamper
the revenue generation of the company, and that can be recovered only by increasing the
frequency of the flights along with the number of flights. These are applicable for both the
passenger as well as for the cargo flights. The company needs to hire more employees so that
they can operate in an effective way possible and can increase the number of flights that are
connecting Jordan to Japan. These will automatically lure the customers when the frequency
is being increased in the process (Maldonado et al. 2014). These are necessary for the
company to expand in the marketplace and to attract the customers from it. The company will
be able to expand in the market as well if they choose this strategy of allocation. The
company requires to focus on the allocation of the flights as per the weather condition as
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6AIRLINE ROUTE AND FLEET PLANNING: ROYAL JORDANIAN AIRLINES
well. These will enable the company to become successful and to lure the customers from the
market.
The company should effectively allocate the flights as per the requirement so that they
can manage efficiently and can grow in the market. These are crucial for the company to
expand in the marketplace and to achieve success in the process. The allocation will make the
flights much more organised in the process (Soler-Arnedo, Hansen and Zou 2013). Therefore,
it can be said that the business needs to focus on the allocation of the passengers along with
the frequency of the flight so that they can expand in the market. So, it can be said that the
company needs to focus on all the aspects so that they can grow in the marketplace and can
achieve success in the process.
Fig. 1: Weight Management
(Source: Created by Author)
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7AIRLINE ROUTE AND FLEET PLANNING: ROYAL JORDANIAN AIRLINES
Fig. 2:
Takeoff Weight Management
(Source: Created by Author)
Key Costs
Operation Cost
Fuel
In respect to the cost of the fuel, if the company is using Boeing 787-8 flights, then
the cost of the fuel is 30% less than the other flight types. These will let the company to earn
profit from the market as the capacity of this type of flight is comparatively more than that of
the other flights, which is being used by the company (Saranga and Nagpal 2016). These
need to look after by the company so that they can flourish in the marketplace and can
become popular in the process, which is essential for the company to become successful in
the market. Therefore, it can be said that the company will earn a profit if they are willing to
use Boeing 787-8 flight type to expand in the marketplace and to achieve success in the
process (Treanor, Simkins, Rogers and Carter 2014).
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8AIRLINE ROUTE AND FLEET PLANNING: ROYAL JORDANIAN AIRLINES
Crew
This type of flight possesses a maximum of 4 flight crew members along with that the
flight requires a maximum of 13 cabin crew members to work efficiently and effectively, and
the flight can carry 210 passengers at a time. These automatically enables the business to
expand in the marketplace and to generate revenue in the process (Berghöfer and Lucey
2014). It is an essential aspect for the company to look after and price the ticket accordingly
so that they can become successful in attracting the customers from the market and enable
them to grow in the process. Hence, the business needs to look after the matter so that they
are able to sustain in the market and can generate revenue in the process (Choi, Lee and
Olson 2015).
Aircraft
The aircraft is made of plastic material which made them cheaper than the other
aircraft, which enable the company to attract the customers with cheap flight rate. These are
the essential aspect which needs to be understood by the company so that they can become
successful as well as provide great service to the customers (Lee, Seo and Sharma 2013).
These will automatically assist the company in attracting more number of customers from the
market and can provide satisfaction with quality service. The aircraft cost is way less than
that of the cost of the other aircraft, which is an additional benefit for the growth of the
company in the market (Ramdas, Williams and Lipson 2013).
Hiring Pilot
As the flight is high tech in operating, which is the main reason for the company to
hire a skilled pilot for the flight. These increase the cost of the flight slightly as the company
need to pay the high rate of salary to the pilot for the skills (Treanor, Carter, Rogers and
Simkins 2013). Therefore, the company needs to look after the situation so that they will cut
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9AIRLINE ROUTE AND FLEET PLANNING: ROYAL JORDANIAN AIRLINES
down the cost to some extent, which will enable the company to flourish in the marketplace
and to achieve success in it. The organisation must look after the matter so they can operate
efficiently and effectively in the market (Lawton 2017).
Maintenance
The company need to train employees to handle advanced technology effectively.
These will automatically enable the company to provide a better quality of services to the
customers. The company requires to look after the situation so that they can reduce the cost to
some extent as it is crucial for the company to provide better quality of services to the
customers and this can be possible only with the help of the maintenance team and their hard
work (Pierson and Sterman 2013). Hence, it can be said that the company need to focus on
the maintenance team so that they can attract a large number of customers from the market.
Marketing
The company need to look after the marketing so that they can market their service.
These will automatically enable the business firm to expand in the market and to achieve
success in the process. The organisation requires to look after the social media marketing, and
for that reason, the company need to spend money so that they can reach the customers in less
possible time (Guimarans, Arias and Mota 2015). Therefore, marketing is also essential for
the organisation to expand in the marketplace and to lure the customers towards the company.
Hence, it can be said that the company will be able to reach the customers in less possible
time and will assist the company in expanding in the market (Sze, In, Ngai and Yan 2015).
Therefore, it can be said that the company need to look after these factors so that they
can expand in the marketplace and can attract the customers towards the company. These will
enable the company to target the audience effectively so that they achieve what they
intending to achieve soon.
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10AIRLINE ROUTE AND FLEET PLANNING: ROYAL JORDANIAN AIRLINES
Recommendation and Conclusion
There are a few recommendations which need to look after by the company so that
they can flourish in the marketplace and can achieve success in the process. The
recommendations are:
The company need to focus on the services that they are providing to the
customers. These are essential for the company to attract the customers in the
market. These will also assist the company to gain popularity and will enable the
customer to understand that the company is providing value to the money that
they are paying to the company. Hence, it is important for the growth of the
company so that they can achieve success in the process.
The company requires to focus on the marketing part as well, which will enable
the company to reach out to the customer in less possible time. These will assist
the company in flourishing in the market and in becoming successful in the
process. These are essential for the company to expand in the marketplace and to
reach to the customers in less time possible. The company need to plan the
marketing strategy so that they can gain popularity in the marketplace and can lure
the customers towards them.
As the company is dealing in providing service to the customers in flights, so the
company needs to assign a team which is capable of providing high performance.
These will enables the business firm to provide better services to the customers so
that they can become successful in the market. The company have selected a route
which attracts travellers, so the company requires to look after this situation so
that they can become successful in the marketplace and can become popular in the
process.
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11AIRLINE ROUTE AND FLEET PLANNING: ROYAL JORDANIAN AIRLINES
These are the essential factors which need to be acknowledged by the company so that
they can attract the customers as well as can become popular in the process. The company
needs to reach to the customers, which will enable them to become popular in the
marketplace. As the company wants to enter into the new route so the company must look
into the matter so that they can lure the customers towards them.
In the end, it can be concluded that the organisation need to look after the advantages
as well as the disadvantages of starting the service in a new route. The company need to
adopt a strategy so that they can efficiently segregate the target market along with that the
company need to know the strength of the competitors in the market. As Tokyo is known for
tourism and travellers likes to visit the place so the company need to understand the need and
wants of the customers, which will enable them to grow in the market. The company also
require to focus on the quality of the service that they are providing in the market to the
customers. These will enable the company to achieve success in the process. The company
have to adopt the strategy which will enhance the marketing strategy of the company so that
they can become popular in the marketplace. Therefore, the organisation needs to grow in the
market so that they can achieve success in the process. Hence, it is essential for the growth of
the company and to operate successfully in the new route to Tokyo, which will ultimately
help the company to expand in the marketplace.
Reflection
In this report, I have come across the planning that the company is going to take so
that they can introduce flights to Tokyo. These report also enables me to understand what are
the strategies that the company is going to take in the process so that they can expand in the
market and can flourish in the process. These are essential for the company to take up
strategy which will enable them to lure the customers from the market. The report also enable
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