Airline Marketing Plan

Executive Summary 1. 0 Executive Summary Puddle Jumpers Airlines, Inc. is a new consumer airline in its formative stages. It is being organized to take advantage of a specific gap in the short-haul domestic travel market. The gap exists in low cost service out of Anytown, U. S. A. The gap in the availability of low cost service in and out of the Anytown hub coupled with the demand for passenger travel on selected routes from Anytown indicates that a new entrant airline could be expected to capture a significant portion of current air travel business at that hub. The management of Puddle Jumpers is experienced in airline start-ups. Previously management grew Private Jet Airlines from a single Boeing 727 to a fleet of 16 MD80 series aircraft. Revenues grew to $130 million in a two year period from 1992 through 1993. Our research and projections indicate that air travel to and from Anytown is sufficient to provide a new carrier with revenues of $110 million dollars in its first full year of operations, utilizing six aircraft and selected short-haul routes. These sales figures are based upon load factors of only 55% in year one. Second year revenues are expected to exceed $216 million dollars with additional aircraft and expanded routes. Load factors for year two are 62%. The Puddle Jumpers plan has the potential for a more rapid ramp-up than was the case with Private Jet due to the nature of the routes and the demand for travel currently in the targeted markets served. In short, the frequency of flights needed to serve Puddle Jumperss target market exceeds the demand that dictated Private Jets growth. These sales levels will produce net profit of just over $1 million in the first operational year and $21. 4 million dollars in flight year two. Profits in year one will be 1% of sales and will improve to 10% of sales with the economies gained in year two. The over-all operational long term profit target will be 16% of sales as net profit in years three, four, and five. The companys long term plan is part of the due diligence package. The first operational year is actually fiscal year two in this plan. The first year of formative operations will burn cash until revenue can commence. This is due to the organizational and regulatory obligations of a new air carrier. Investment activity is needed to handle the expenses of this phase of the business. The following chart illustrates the over-all highlights of our business plan over the first three years. Gross Margin here is approximately 87% of sales since the only costs included in this calculation are travel agent commissions, credit card discounts, and federal excise taxes. Travel agent commissions are calculated on 30% of sales even though management feels the actual number will not exceed 10% of sales. NOTE: For display purposes in this sample plan, numerical values in tables and charts are shown in thousands (000s). Highlights 1. 1 Objectives The Company has the following objectives: 1. To obtain required D. O. T. and F. A. A. certifications on or before March 1, 1997. 2. To commence revenue service on or before July 1, 1997. 3. To raise sufficient seed and bridge capital in a timely fashion to financially enable these objectives. 4. To commence operations with two McDonnell-Douglas MD-80 series aircraft in month one, four by end of month four, and six by end of month six. 5. To add one aircraft per month during year two for a total of 18 at year two end. 1. 2 Mission Puddle Jumpers International Airlines, Inc. has a mission to provide safe, efficient, low-cost consumer air travel service. Our service will emphasize safety as its highest priority. We will operate the newest and best maintained aircraft available. We will never skimp on maintenance in any fashion whatsoever. We will strive to operate our flights on time. We will provide friendly and courteous no frill service. 1. 3 Keys to Success The keys to success are: Obtaining the required governmental approvals. Securing financing. Experienced management. (Already in place). Marketing; either dealing with channel problems and barriers to entry; or solving problems with major advertising and promotion budgets. Targeted market share must be achieved even amidst expected competition. Product quality. Always with safety foremost. Services delivered on time, costs controlled, marketing budgets managed. There is a temptation to fix on growth at the expense of profits. Also, rapid growth will be curtailed in order to keep maintenance standards both strict and measurable. Cost control. The over-all cost per ASM (available seat mile) is pegged at 7. 0 cents or less in 1996 dollars. This ASM factor places Puddle Jumpers in a grouping of the lowest four in the airline industry within the short-haul market. (US Air, the dominate carrier in the Anytown market, averages 12. 0 cents per ASM by comparison). The only three airlines with lower operating costs also operate older and less reliable equipment, and even then the lowest short-haul cost in the airline industry is currently Southwest at 6. 43 cents per ASM. Company Summary 2. 0 Company Summary Puddle Jumpers International Airlines is being formed in July, 1996 as a South State Corporation. Its offices will be in Anytown, Georgia. The founder of Puddle Jumpers is Kenneth D. Smith. Mr. Smith has extensive experience in consumer aviation. His bio as well as the backgrounds of all the members of Puddle Jumperss management team are enclosed herein. 2. 1 Company Ownership Puddle Jumpers International Airlines, Inc. will authorize 20,000,000 shares of common stock. 1,000,000 shares are to be set aside as founders stock to be divided among key management personnel. It is also expected that management stock options will be made available to key management personnel after operations commence. It is expected that founders stock plus option stock will not total more than 15% of authorized shares. Initial seed capital is to be attracted via a convertible debenture sold by Private Placement. This round of funding will have premium conversion privileges vs. later rounds and bridge capital.

Personal Leadership Development Plan Essay Example | Topics and Well Written Essays - 1250 words

Personal Leadership Development Plan - Essay Example The principles of appreciative coaching are differentiated herein: The Constructivist Principle focuses on the influence of social structures in significantly affecting the behavior of individuals in relation to others. The Positive Principle, as the term implies, centers on the positive aspects of an individual’s life through experiences that have been perceived to be constructive and optimistic in general. In addition, the Anticipatory Principle ventures on anticipated scenarios that become the basis for behavior and decision making processes. The Poetic Principle, on the other hand, creatively utilizes vivid illustrations and storytelling to solicit crucial information, not solely on the facts, but also in terms of emotional experiences. And finally, the Principle of Simultaneity focuses on the premise that â€Å"inquiry is change†¦ (and) intervention† and guidance is redirected to the first inquiry and its influence to effect change. Personal Assessment of Leadership Coaching Skills To increase one’s capacity to lead, coach, and develop others, one realized the need to familiarize oneself with the basic theoretical framework needed for leadership coaching. The objective is to be achieved through a research on secondary literatures on the crucial elements of coaching and leadership from a coaching perspective. As indicated by Peters & Austin (1985), â€Å"coaching is a form of leadership that pulls together people with diverse talents, backgrounds, experiences and interests, encourages them to step up to responsibility" and continued achievement, and treats them as full scale partners and contributors† (p. 232). Likewise, the authors emphasized that â€Å"coaching is not about memorising techniques or devising the perfect game plan. It is about really paying attention to people – really believing them, really caring about them, really involving them†

Business Law Essay Example | Topics and Well Written Essays - 1000 words - 1

Business Law - Essay Example The point of sales are located world wide and it is able to sell its digital content via the iBookstore , iTunes , App Store, and the Mac App Store as well. The company came in to being in the year 1977, and is now regarded as the world’s largest companies. The company currently has assets worth over a $70 billion and now has devised huge plans for this years and the upcoming five years as well. As per the annual report filling which is necessary with the Securities Exchange Commission of the United States , the company will be expanding its retail operations and the business. First off the retail business of teh company will be expanded where an approximate investment of about $900 million will be spent as a result of which the total Apple retail outlets will come to be about 357. In China, the company will be taking an initiative to increase the number of stores because this is the region where Apple faces the problem of the fake Apple stores and since the Chinese market is expanding at the same time as well. Some of the stores of Apple will also be replaced , which include inside the United States as well as outside of the region. Approximately $7 billion will also be spent on the production process equipment , the infrastructure facilities if the company and the enhancements of the information systems ,hardware and software technologies as well. With the construction of the new Apple Campus taking place in California, a significant chunk of the revenue of the company will also be allotted to the purpose of the space ship campus. There are massive research facilities , plants and auditoriums being arranged in the campus which will be expanded over the 150 acres of land. Most importantly , there will be significant expenditure on the ‘solar farm’ idea of the company which will be powerhouse of the data center and this is where nearly all the operations of the iCloud will be carried out. Therefore apart from the space ship campus being buil t in Cupertino, there is another facility being constructed for Apple in North Carolina which will be powered by the solar energy. There will be significant amount of investment in the research, manufacture and the marketing of the products as well, where Apple will be introducing new products in the market that are believed to revolutionize the world of technology. Apple will also be taking measures to improve the supply chain and establish a stronger relationship with its manufacturers, Foxconn. Foxconn came under the limelight of controversies due to the below average working conditions that the entity had and therefore Apple is seeking to improve the labor conditions of the Chinese workers whereas at the same time the company is striving to increase the consumer satisfaction as well. In order to achieve this objective, Apple will be paying for half the cost which is involved in making the working conditions better. Therefore the improvements in the supply chain will be followed by making the working conditions of the manufacturers better, which is Foxconn. The expansion policies of the company will have to take under consideration the administration law which is defined as the law body responsible for the governance of the administration agencies’ activities. Apple has been quite in the limelight for the past many years for the patent infringement law suits which have been filed against various companies and the lawsuits filed by other companies on Apple. Some of these