2.1 Product/services
Product
The fundamental product of the Royal Wings Airline is aviation transport. Royal Wings Airline is a passenger transport agency, which provides airplane commuter services to varied destinations. Airline transport is a common commodity among airline service providers in Phoenix Arizona area. Royal Wings Airline is product provider of airline destination and transport market in varied categorical groups. This agency provides basic transportation products and customer services.
Services
Royal Wings Airline is a satisfactory consumer service provider. This is evident by the level of security provided in its convenient and comfortable air transport service. Employees of Royal Wings Airline are responsible for handling consumer luggage, airplane services, and check in services at the airport. Royal Wings Airline has an interconnection of car rental and cargo services provision. The consumers, upon landing at the airport, effectively use car rental services for city tours. The car rental services are directly provided on arrival of the customers. The cargo service is reserved for to top individual passengers and caters for companies that are relevant for logistics. Advanced service booking is available at the check in desk and can be provided through cargo sale personnel.
2.2 Location, Markets and Target groups
Location and Market
Royal Wings Airline is located in Phoenix, which is its headquarters. This is a location or setting to the west of the United States of America. The main markets for Royal Wings Airline are Texas, California, and Mexico. The average dissemination of flights in the Royal Wings Airline is four on a daily routine. This is a breakdown of 600 miles flights and 1800 miles as a routine flight record. The interpretation of the royal wings flight service indicates a return flight to Phoenix and a daily schedule.
Target group
The main composition of the Royal Wings Airline consumers reflects to families and businesspersons. Effective aircraft loading and offloading reflects the efficiency of Royal Wings Airline. This means that the airline is a leading competitor in the airline market. The evaluation of an average American living standard embraces the airline travels more and relies on the onboard services.
2.3 Organizational Structure
The organizational structure of the Royal Wings Airline is on a hierarchical dimension. The airline company is managed by the support of a systematic board of directors. The board of directors has 6 functional presidents. The annual Royal Wings Airline employment statistic is represented by a total of 194 employees in 2 airlines. This is integrated into two existing departments.
Organizational Chart
The Chief Executive Officer is the leading personnel and closely works with the various vice presidents in the company. The areas headed by the vice presidents include operations, human resource, marketing, finance, and maintenance. The vice president, who heads the human resource department, is allocated managerial duties and is assisted by the vice president in charge of operations. The vice president in charge of maintenance is responsible for aircraft services. The existing departments have appointed directors with several assistants who coordinate employee management. The assistants are assigned to supervise employee duties while the existing directors are the only members that join board meetings.
2.4 Realized Investments
The initial Royal Wings Airline fleet was 3 beech crafts representing 1900 aircrafts. This was the initial flight operation number at the beginning of the year. The expansion of the Royal Wings Airline fleet was realized at the first year of operation. This is evident by the 6,200, 000 us dollars investment on new aircrafts. The lease contract is valued at 528, 000 us dollars on purchase of 5 airplanes
Fleet status 31-12-2006
1x type A beech craft 1900 aircrafts (total ownership)
2x type C embraer Brasilia aircraft (total ownership)
2x type C embraer Brasilia aircraft (a lease program)
The gradual Royal Wings Airline demands were progressive on the second year. The expansion of the airline fleet was realized to manage the large passenger numbers. This was enhanced through the selling of aircraft type A to manage the quality of service. The decision to maintain aircraft C and D was effective to carry a large number of passengers in a comfortable manner. The Royal Wings Airline fleet of year two demanded a 6,800.000 US dollar investment and a lease incorporation contract of 288,000 US dollars. This would result to a purchase of seven aircrafts at the end of the second year.
Fleet status 31-12-2007
2X type C Embraer Brasilia aircraft (a lease program)
2X type C Embraer Brasilia aircraft (total ownership)
1X type D Saab 340 aircraft (a lease program)
2X type D Saab 340 aircraft (total ownership of 10)
Royal Wings Airline purchased the Embraer ERJ135 aircrafts type E during the first quarter of year 2. This aircraft was very expensive and non-profitable for the Royal Wings Airline provider. The release of the ERJ135 aircraft was a profit program, but was replaced by a new aircraft (c type) with a lease contract on the D type aircraft. The changes resulted to a profit improvement and interest realization. 125,000 US dollars was used for the marketing strategies and 75,000 US dollars was spent on quality improvement with training programs. The review of the budgets indicated 310.004 US dollars in the marketing departments and 145,000 US dollars incorporated in the human resource unit.
2.5 Research and Development
The airline market research points to Royal Wings Airline as a high performance service provider compared to other competitors. The market trend is an evaluation of the airline competition, which strategically directs the airline. This is an effective strategy to maximize the market output on an approximate amount of 31,000 US dollars quarterly without the 7th quarter.
Data acquired on the airline market research is focused on the business environment, the quality of the service provided, and the budget representation of the employees. An overview of the market research is a representation of the ticket sales, advertising budget, and cargo transportation. This is a future strategy on the development and expansion of the Royal Wings Airline Company. The research provides ground for future expectations and early planning on the development plans.
Market research is useful for Royal Wings Airline Company, particularly in the adjustment of the flight schedule. This is enhanced by the selection of the consumer destination preference. The market research is an evaluation of the destinations with competitive markets and a comparison to flight destinations without competitors. This is a strategic management count on the ticket prices. The market research is an entire framework on the competitor’s formula of success, which Royal Wings Airline can easily adopt and implement. The market research is a guideline on future operation skills for the Royal Wings Airline Company. This is used as maintenance framework and service regulation platform for the company.
2.6 Future Activities
The overview of Royal Wings Airline is represented as a rapid growth and development over the establishment duration. The expansion of more destinations is focused on service improvements. This is evident by the positive image achieved through strategic marketing among consumers. The heavy marketing and promotion budget in the Royal Wings Airline has reflected on large passenger numbers. The aim of Royal Wings Airline is to purchase more planes and employ more trained personnel; thereby, become a leading world-class airline company.
The success of Royal Wings Airline Company is centered on the external markets and internal management skills. The internal management is focused on the growth of the income revenue of 10% annually. This will strategically lead to the growth of the revenue income and passenger increment. The profit rate of 13% was achieved in the past two years of flight operation in the royal wings airline. The passenger number increased to almost 110% between the first and second years. This means that an increment of 2000% has been achieved over the two flight operation years. The overall review of the flight operation scheme for the Royal Wings Airline can be deduced to be advancing by every operation year. This is a positive dimension in the airline industry and can easily dominate a practical mechanism.
2.7 Financial Calendar
Quarter 1: 1st of January to 31st of March 2006
Quarter 2: 1st of April to 30th of June 2006
Quarter 3: 1st of July to 20th of September 2006
Quarter 4: 1st of October to 31st of December 2006
References
Green, K. B. (2002). The aviation industry. Philadelphia: Hanley & Belfus.
Ullman. (2008). Aviation. Langenscheidt Pub Inc.
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