AE6601: Air Transport Economics and Airline Strategic Planning Coursework Assessment

Assessment

Module Learning Outcomes

The following module learning outcomes and professional body learning outcomes are tested in this assessment: 

• Assess the potential impact of an Airline’s business strategy. 
• Discuss the major determinants of air transport supply, demand and cost.

Task

You are tasked with developing a strategic plan for a new airline. The plan will focus on the following key elements:

Introduction 

• Introduce your airline concept (vision, mission, and unique selling proposition).
• Provide a brief overview of the strategic plan. 2.

Market Analysis and Route Justification 

• Justify the selection of TWO initial routes based on: passenger demand and demographics; competitive analysis and market gaps; economic, regulatory and geographic considerations. 

Fleet strategy 

• Select appropriate aircraft types for the proposed two routes. 
• Discuss operational efficiency, cost-effectiveness, and sustainability. 
• Provide a rationale for your fleet decisions (e.g., route distances, passenger capacity, environmental factors).

Operational strategy

• Outline ground handling and customer service approach.
• Consider scalability (the capacity to expand operations - such as increasing the number of routes, fleet size, or customer base) for future growth.
• Highlight sustainability initiatives.

Assessment Requirements Brief Summary

This assessment evaluates students’ understanding of airline strategic planning by requiring the development of a strategic plan for a new airline. It directly addresses the module learning outcomes by assessing the student’s ability to analyze airline business strategy and discuss the key determinants of air transport supply, demand, and cost.

The assessment is structured around the following key components:

1. Introduction

   • Present the airline concept, including vision, mission, and unique selling proposition (USP).
   • Provide a concise overview of the strategic plan and its objectives.
2. Market Analysis and Route Justification
   • Justify the selection of two initial routes based on:
     • Passenger demand and demographic analysis
     • Competitive landscape and identification of market gaps
     • Economic, regulatory, and geographic considerations
3. Fleet Strategy
   • Select suitable aircraft types for the two proposed routes.
   • Discuss operational efficiency, cost-effectiveness, and sustainability.
   • Provide a clear rationale linking aircraft choice to route distance, passenger capacity, and environmental factors.
4. Operational Strategy
   • Outline ground handling operations and customer service approach.
   • Discuss scalability and future growth potential (routes, fleet, and customer base).
   • Highlight sustainability initiatives integrated into operations.

Key Pointers to Be Covered:

• Strategic alignment between market demand and airline operations
• Application of air transport economics concepts
• Justified decision-making supported by industry logic
• Integration of sustainability and long-term scalability

Academic Mentor’s Step-by-Step Approach

The academic mentor guided the student through a structured and logical process to ensure all assessment criteria and learning outcomes were met.

Step 1: Understanding the Assessment and Learning Outcomes

The mentor first explained the purpose of the assessment, emphasizing how each section contributes to evaluating airline strategy, supply-demand dynamics, and cost considerations. This ensured clarity on expectations before starting.

Step 2: Developing the Airline Concept

The student was guided to clearly define the airline’s vision, mission, and USP, ensuring alignment with current aviation market trends. The mentor emphasized clarity, realism, and strategic positioning.

Step 3: Conducting Market Analysis and Route Selection

The mentor helped the student analyze passenger demand, demographics, and competition to justify the selection of two routes. Guidance was provided on identifying underserved markets and considering regulatory and geographic constraints to strengthen route justification.

Step 4: Designing the Fleet Strategy

The mentor assisted in selecting aircraft types that matched the proposed routes. The student was guided to evaluate:

• Route distance and passenger capacity
• Operating and fuel costs
• Environmental and sustainability considerations
  This ensured fleet decisions were economically and operationally sound.

Step 5: Structuring the Operational Strategy

The mentor supported the student in outlining ground handling and customer service models, emphasizing efficiency and customer experience. Scalability and sustainability initiatives were incorporated to demonstrate long-term strategic thinking.

Step 6: Review and Refinement

Each section was reviewed to ensure logical flow, alignment with learning outcomes, and clear justification of strategic choices. Feedback was used to refine arguments and improve clarity.

Outcome Achieved and Learning Objectives Covered

Final Outcome:

• A coherent and well-structured strategic airline plan
• Justified route selection supported by market analysis
• Realistic fleet and operational strategies aligned with sustainability and growth

Learning Objectives Covered:

• Assessing the impact of airline business strategies
• Understanding determinants of air transport supply, demand, and cost
• Applying strategic and economic concepts to real-world airline planning
• Developing analytical, research, and professional reporting skills

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