Ecoair Is An Airline Company - Travelers Have A Choice Of Booking A Flexible Ticket - Management Assignment Help

Assignment Task

QUESTION 3   

EcoAir is an airline company that was incorporated and registered in South Africa in 2012. The company has a reporting period ended 31 March 2020. The airline had initially begun with a few local flights but was soon a popular choice of travel. This enabled them to expand their operations to the international arena and have since become a popular choice of airline travel to some of the major countries around the world.

EcoAir offers the following services for travelers:

1. A flight ticket can be purchased through the EcoAir website or app. 
This allows a traveler to compare the prices of flights for the particular travel dates. Flights can either be booked as a one-way travel ticket meaning that the travel will only be from the place of departure to the place of arrival or a return trip meaning that a flight is booked on the date of departure and another flight is booked from the destination back to South Africa. 

Travelers have a choice of booking a flexible ticket or a set, non-refundable ticket. The flexible ticket gives the passenger the choice to fly on particular flights on a range of days but the set, non-refundable ticket only allows the passenger to travel on a set day at a scheduled time. Flexible tickets, in general, are slightly more expensive than the set, non-refundable tickets.

The flight ticket only allows the booked passenger access to the flight, subject to obtaining a boarding pass within 24-hours of the flight. The boarding pass is printed either at the check-in counters on the day of travel or can be obtained via the online check-in function that the passenger would have access to 24-hours prior to the scheduled flight.

Passengers are allowed one carry-on luggage weighing up to a maximum of 7kg’s with the flight ticket purchased. Should a passenger wish to travel with additional luggage, a luggage voucher can be purchased from the website/app as well.

2. A luggage voucher
EcoAir offers passengers on all local flights only a choice to purchase a separate luggage voucher should the passenger wish to check-in any luggage. This luggage voucher allows the passenger to carry a further 2kg’s as carry-on luggage and an additional 25kg’s luggage that would be checked in.

The luggage voucher further notes that all luggage that should be checked-in can either be done at the check-in counters on the day of travel or should a passenger have chosen to check-in their luggage online then the luggage should be dropped off at the luggage/bag drop off counters on the day of travel. The online check-in of luggage is not charged for additionally and therefore is included as a service if you are possession of a luggage voucher.
QUESTION 3 (CONTINUED)   

In order to ensure that there is control on the luggage that is allowed as carry-on luggage, the luggage is weighed as passengers make their way through the safety and security check point counters. Should the weight of the luggage exceed the 7kg’s allowed carry-on luggage with the flight ticket and the passenger is not in possession of a luggage voucher, the passenger would be required to purchase a voucher before being allowed through the security check points.

The above voucher is automatically granted to a passenger on an international flight once the passenger purchases a flight ticket and cannot be redeemed in any form even if the passenger chooses to travel lighter.

3. A meal voucher
As EcoAir tries to ensure flights are kept as affordable as possible, passengers on flights for a duration of less than 4-hours are not automatically served a warm meal. Instead, passengers have the option to purchase a meal voucher should they opt for the warm meal option. The meal voucher entitles the passenger to be served a warm meal, a small snack and drinks during the course of the flight.

Passengers on flights that are equal to and exceed the 4-hour duration would automatically qualify for a meal voucher once they have purchased a flight ticket. These meal vouchers are not issued to the passengers but are rather factored into the price of the ticket and cannot be redeemed in any form.

Separate light snacks are sold on board all flights and these snacks can be purchased using cash or credit cards during the flight.

EcoAir views all flights that have a duration of 4-hours or more as international flights and those flights that are for a duration of less than 4-hours are deemed local flights.

4. Shuttle service transfers from the airport to hotel or home
Through surveys EcoAir has found that after a pleasant flight, passengers are sometimes stressed on how they would get to their hotels as taxi fares from airports are generally more expensive. Therefore, EcoAir began offering passengers aboard their flights an option of a shuttle service to transfer them to their hotels or their homes (if they are returning to South Africa) so as to ensure a pleasant and stress free flying experience. 

This shuttle transfer service can only be booked on EcoAir’s website and has to be done prior to the check-in procedure so as to ensure that EcoAir makes the necessary arrangement’s for the passenger at the airport of arrival.
QUESTION 3 (CONTINUED)    

As most airlines, EcoAir was significantly impacted with the global novel coronavirus pandemic, most commonly known as Covid-19. EcoAir watched as many countries had closed international travel and not long after local flights were also halted. As the uncertainty around flights and the national lockdown being effective from 26 March 2020 in South Africa had caused much panic to passengers, EcoAir decided to take some measures for all its international and local flights. All travel up until 22 March 2020 were completed according to the normal policies of EcoAir but the following was applicable from 23 March 2020 onwards.

Flexible tickets:
Passengers that were in possession of a flexible airline ticket for both international and local travel would NOT be granted a refund on their tickets. Instead, they would be granted an extension of 9 months on their ticket. Should the pandemic continue beyond the 9 months’ extension period, with travel bans still in place, the airline would reconsider the extension period to a period of 12 months. Any luggage vouchers, meal vouchers as well as shuttle vouchers would also be granted the extension with no additional penalty on these.

Set, non-refundable tickets:
Under normal circumstances these tickets are non-refundable. However, as Covid-19 is unprecedented, EcoAir’s management decided that in order to ensure they do not lose their passenger clientele by passengers losing their flight tickets and money for a pandemic not within their control, they would make an exception to these ticket holders. Therefore, set non-refundable ticket holders would be granted the following options:

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