Project Airline

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Business Report
Airline 6-------Airline business simulation game
Report of the Ho’s Airline

Business Report
Airline 6-------Airline business simulation game

Introduction
Business plan
Our company is called the HO Airline Company and we set ‘HO’ as our IATA code. The business plan of our company is as follows: Network: International and Domestic (both long and short haul) Aircraft Seating: Standard On board Catering: Standard Main Source of Income: Cargo and Passengers Cabin for both long and short haul: First, Business and Economy Location of Headquarter: Hong Kong We put our headquarter at Hong Kong because it has a good geographic location. Moreover, since there is a rapid economic growth in Hong Kong, there is an increasing demand for air traffic. Despite a relatively short history, Hong Kong International Airport has won the Skytrax World’s Best Airport Awards for several times already. This showed that the Hong Kong International Airport is an airport of high quality. All these create a very favorable condition for the running of our operation. After summiting the business plan, we have generated an investment capital of $71,754,540.00.

Learning objective
Aim: The reason of us studying airline 6 is that we can know more about the knowledge of an airline operation. For example, we can study the establishment of different airline form the home country to other countries, provide cargo and passenger service and use the limited resource to the highest cost etc.

Business Report

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Region of destinations
We have chosen 78 different places in the world as our destinations. They are usually big cities which have a high passenger demand (reflected by the PAX Load Factors). Examples are Washington Dulles, Shanghai Pudong, Osaka Kansai International, Manila, Phuket, and Dubai, etc. Apart from the main cities, we also include small cities like Penang, Salt Lake City so as to cater the need of different customers. By offering different choices of destinations to the customers, we can earn a wider source of income from the customers. Besides the passenger side, we also do business on the cargo side.

Types of aircraft
Business Report

Airbus and Boeing are the two main types of aircraft we used. For Airbus, we have A300, A310, A330, A340, A380. And for Boeing, we have 747.

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Business Details

Selection of aircraft
Airbus (Passenger & Cargo) A300-600 PW A300-600R GE A300-600 GE A300-600R PW A310-300 GE A310-300 PW A340-200 A340-300 A330-200 PW A330-200 RR A330-200 GE A340-213X A340-500 A380-800 EA A380-800 RR Boeing (Cargo Only) 747-400F PW 747-400F RR 747-400F GE 747-300SF GE 747-300SF RR

Since we do not have enough money at the very beginning of our operation, we choose to lease aircrafts instead of buying them. There are several reasons why we select the above-mentioned aircrafts. First, they are usually aircrafts with a large capacity which means that it can accommodate more customers. Moreover, a larger aircraft is favorable for our cargo operation since cargo is quite space-demanding. Second, the speed of these aircrafts is high. Third, they are not very fuel-consuming. Fourth, the range of these aircrafts is long which is suitable for both our long and short haul. Fifth, they are usually aircraft with a newer age. Since people prefer to fly in newer aircrafts, we would be able to attract more customers with a more recent date of introduction of aircrafts. The reason why we mainly focus on two main types of aircrafts is that it can help to save the cost on pilot training as well as the simulator costs. Moreover, since we have selected an airport specialized in Airbus aircraft, it is therefore normal for us to choose Airbus as one of our main types of aircrafts.

Business Report

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Service Standard
We offered full service to our passengers, and the First and Business class are our targeted customers. Since they have higher financial ability, we would be able to earn a lot from...
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