Air Berlin Case

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Financial Management\Air Berlin Case

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Executive summary
Airline industry has been faced with stiff competition due to the increased number of airline companies in the sector. The study will focus on the strategies that are deployed by Ryanair Airline Company, Air Berlin Company and Easy jet plc in ensuring that it meets with the competitiveness in the economy. The strategies for Ryanair Airline include; Low fare, Best Customer service, Short-haul route and destination, Reduction of operating costs, Internet services in its reservation system and Quality management. In the case of Air Berlin airline its strategies comprises of high service standards, blanket coverage, market positioning and segmentation, ticket booking, low price considerations, flight connections and safety of the passengers and staff and the overall efficiency in its operations. Easy jet plc articulates to its long term strategies which are customer service and safety, fare structure is simplified; unit costs are minimized, strong branding, articulation of multi-base network and strong corporate culture in the organization. Air Berlin company need for IPO is highlighted and the reasons for its decision to go public. Calculation of the NPV for the company is provided which necessitates in the determination of the share value of its initial public offer. Ryanair airline strategies

Ryanair airline wants to resolutely establish itself as the leading airline industry in Europe. The company is facing stiff competition from its rival companies and aims at achieving global advantage over its competitors.  The strategies deployed by the company in the realization of its strategic objective include low fares which are aimed at stimulating consumer demand. This is in particular form the consumers who are fare-conscious and the business travelers who they would otherwise use other forms of transportation. The company imposes sales of seats on a basis of one-way travel thus ensuring that lateness and delays due to the stipulated minimum stay that is required by the passengers is eliminated. This effectively increases the company’s operations and in the long run increases its profitability. In addition, best customer service deliverance is another strategy that the company deploys in the economy. The reports produced by the Association of European Airlines suggests that Ryanair has achieved the highest punctuality as compared to any other airline, fewer passenger bags have been reported to have lost and there have been mitigation of the air tickets cancellation. The company achieves this by focusing its services on consumer satisfaction and making it easy for the staff to satisfactorily attend to the consumers. Frequent short-haul routes have been seen to be a common strategy that the company administer in an attempt to meet the competitive nature of the airline industry. The company provides readily available services and transportation to its clients with major focus on the point-to-point flights as they consider majority of the passengers travel on a short distance basis. Management believes that for the company to be effective in the current competitive economy and to realize its overall strategic goals and objectives, the company should focus on the reduction of operating costs. Currently, Ryanair Company aims at reducing its operating costs by ensuring that its primary costs are curtailed. That is the equipment costs associated with the aircraft, personnel productivity costs, costs associated with customer service and the fees for accessing the airport. Consequently the company aims at taking the advantage if technological advancement and incorporating the use of internet to its reservation system, ensuring quality management, safety realization, enhancing operating results, and growth plan that targets specific markets. Air Berlin Strategies

Air Berlin is considered among the leading airline companies...
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