MODULE ONE – INTRODUCTION AND EXECUTIVE SUMMARY
TransGlobal Airways Corporation (TAC) is a Philippine-registered airlines incorporated in 2005. It was conceived as an eventual support for the operations of a leisure resort. The situation of TransGlobal is quite unique. It is interesting to note that even though the operations of the airlines is eventually passenger operations, it is operating as an air cargo airlines. The question is why. Passenger transport in the Philippine air transport industry it currently has to sustain its air cargo operations in order to favor release of a license to operate passenger operations in the future.
The air transportation industry is an industry that has high barriers of entry. A potential entrant does not only have to contend with the barriers, it also faces strong retaliation from the players in the industry. This is understandable since costs of operations are so prohibitive that an additional entrant would definitely affect the market share, which translates to significant changes in revenues and profits.
However, TAC is unique in the sense that it is the only airlines in the Philippines that offers its kind of services as a pure air cargo charter. Its operations are also geared towards sustainability rather that competition.
Almost two (2) years in its cargo operations. TransGlobal Airways Corporation is rethinking and re-examining the rationale for its conception. The current air cargo charter operations is promising. Although there are threats to the industry, there are more opportunities that should be explored to gain advantages.
It is the elementary attempt of this paper to identify these opportunities, to examine the nature of the organization, and to recommend actions or changes thereof. It is also the prayer of this paper that the recommendations be considered as inputs to the reevaluation of the organization’s thrust. MODULE TWO – EXTERNAL ENVIRONMENT ANALYSIS
1. DEFINITION OF INDUSTRY
The industry is the air transportation industry in the Philippines. This industry is divided into three (3) segments:
1. The business aviation segment, which includes all aircraft not flown by commercial airlines and which renders domestic
corporate charter flights services;
2. The aviations segment also not flown by commercial airlines, but which renders domestic non-corporate charter flights services, and;3
3. The segment of privately owned, state-owned and partially privatized airline companies in the country that provide both domestic and international commercial air travel services, both for passengers and cargo.
In terms of then object of transport, the air transportation industry is divided into passenger transport and cargo transport. In the manner in which the air transportation service is engaged, the industry can also be divided into the commercial or noncommercial. Commercial airlines operate on regular schedules. The flights that they operate are referred to the industry as scheduled flights. On the other hand, noncommercial airlines operate on a non-scheduled basis. They only operate when their aircraft/s are “chartered”. Thus, these types of airlines are referred to the industry as charter airlines; and their flights are called charter flights. Air Charter/Charter Airline
Air charter is a phrase that refers to the renting of an entire aircraft as opposed to individual aircraft seats. While the airlines specialize in selling transportation by the seat, air charter companies focus on individual private aircraft and itineraries, for passenger flights, urgent or time-sensitive freight or cargo, air ambulance and any other form of ad hoc air transportation.
A charter airline operates aircraft on a charter basis, that is flights that take place outside normal schedules, by a hiring arrangement with a particular customer. Most commercial or scheduled...