Executive summary of AIA

Document Type:Thesis

Subject Area:Engineering

Document 1

Currently, her regular flight destinations are based in, Australia (60%), New Zealand (20%), Indonesia (10%) and France (10%). The airline has a total of 10 flights in a day that are scheduled as follows: • Sydney-Auckland (3 services daily). • Sydney-Christchurch (2 services daily). • Sydney-Denpasar (Bali-Indonesia; 1 daily service). • Sydney-Nadi (Fiji-1 daily service). AIA is targeting a bourgeoning air market with targets in: the domestic Australian and New Zealand, China, The United States, Hong Kong, Philippines and the United Kingdom. The targeted markets viability will be discussed in both the internal analysis and external analysis section below. As the new markets are targeted, AIA seeks to become a full service carrier network operating large commercial aircrafts and on the State-of-the art technology making her: fly to distant destinations, carry more passenger and cargo, offer a buzz of air flight entertainment, and field a highly competitive crew and improve on her profits.

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AIA has floated a $ 10 billion budget with half coming from her leaser (HNA Group Inc. ) Where the rest has been raised from accumulated profits and other company business activities. AIA Current Airbus AIA has been carrying cargo and passenger for 10 years now. Her 10 commercial flights are all of the A-330-200 model all supplied by the Leiden, Netherlands based Airbus Group SE. However, with Leased funds from HNA Group that owns it. According to the Airbus Group (2018), the current model is one of the most modern and reliable on the sky. The airbus is mid-sized with a double aisle with a 240-400 seat cabin for which AIA’s ordered planes of 260 passenger carrying capacity (Airbus Group, 2018; AIA, 2018). The plane only reports a total of 13 incidents in which 11 were accidents and 2 where incidents; an accident involved total hull-loss (6 total hull loss and 5 partial) where two were hijackings.

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Overall only 339 fatalities have been recorded. This AIA models thus not only efficient for crew and passenger but amongst the safest aircraft models (Airbus). Fleet Capacity Currently, AIA operates a fleet size of 10 A330-200 airbuses. Each plane has a carrying capacity of 260 passengers. 1 below: Even though the overall national capacity has been growing to accommodate passenger demand, AIA has not taken initiative to so do citing unexploited market. She has all along maintained her fleet size of 10 A300-200 airbuses which translates to 2600 available seats and only for domestic and regional travel. Also, her flight destinations have not been improved and the initial 10 are still the ones fully adopted as at 2018. The size is almost negligible as viewed from the bars in fig.

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1 above. No. Weaknesses 1. High operation costs due to lack of economics of scale base. Small market and risky due to capitalization on only a small market base 3. All aero planes are leased property. Here, AIA will stand to reap. Economy Even though Australia does not feature in World Bank’s top 10 global economies, Australia ranks as the second wealthiest economy after Switzerland in the world as at 2017. The economy (GDP, $1. 3 T) is among the fastest growing and per capita average $54, 888 (Giddens, 2018; 23). Wealthy people can afford to pay for air travel that is costly when compared to all other means of transport. While the pre-existing technological factors will foster growth the overreliance on low cost and low quality economy class may be rendered obsolete a reason as to why AIA should invest in highly comfortable and more cabin entertainment airlines.

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Environmental According to McLachlan, James and Hampson, (2018), 2. 5% of the global carbon emissions is exhaust jet fuel. The International Air Transport Association (IATA) and the global community at large requires airplanes to observe environmental protection (McLachlan, James and Hampson, (2018)). AIA adopts proper disposal of used jet fuel and recycling as an environmental protection agency. An expected Asian Boom will boost demand. No. Threat 1. Rising global terrorism concerns pointing global security concerns and travel bans that will impact negatively on air business. Fluctuating aviation fuel prices will pose uncertainties. Australia and Philippines enjoy strong bilateral talks. The two countries showcased their relationship in 2016 in the so called Australia-Philippines at 70. Their trade pact is called the Joint Declaration on Philippines-Australia Comprehensive partnership (Australian Government, Department of Foreign Affairs and Trade).

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Economic Analysis 2. The $18. 8 billion. It’s the fastest growing economy in Asia pacific. $3,541 GDP per capita and highly recommended for Air travel investment (The World Bank Data, 2018). Social 3. According to the Australian Bureau of Statistics, over 500,000 Americans are traveling to Australia for tourism. High quality planes and top-class entertainment craved for. Boeing is liked. Has an internet penetration of 90%. Online commercials to trend on well. Likes Boeing and associates with A 380 a European brand. Environmental protection captured about obeying environmental law, conserving earth’s resources, improving ecosystem efficiency and partnering for environmental protection. Strict adherence to national, international law on environmental issues. Legal 6. A strict and complex legal environment that new entrants into the market should be highly prepared for. A strict and complex legal environment that new entrants into the market should be highly prepared for.

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