Answer To: Assessment 2: Individual report: (Numeric Grade 1-10) A XXXXXXXXXXwords individual paper that...
Tanmoy answered on Jan 04 2022
1
Figures title: 8
A STRATEGIC INDIVIDUAL RESEARCH ON CORENDON AIRLINES
Table of Contents
Overview of the Airline Industry of Netherlands 3
Corendon Airlines 4
Theoretical Background 4
Airline Route and Pricing 6
Strategy to Bring Positive Change in Business Operations 7
PESTLE Analysis 8
Value Chain 10
Core Problem 11
Confrontation Matrix 12
Current Operational Strategy of Corendon Airlines 14
Factors That Have Influenced the Airline Industry and The Strategy Applied 14
A Change Management Project Plan for the Proposed Change/Strategic change 15
Change Management Proposed Plan B 16
Recommendations for Airline Operators 16
Conclusion 17
References 18
Overview of the Airline Industry of Netherlands
The economy along with the wealth of Netherlands is enhanced mostly due to the aviation sector. Approximately 3.2% of the GDP in Netherlands is accounted for in the airline industry along with the revenue generated from the foreign travelers who hovers. It is a small country, with strong international positioning and high level of expertise. This has helped them to develop a strong aircraft industry which will be able to deliver products for every airplane which is flying. There were about 1600 airliners which were built in Netherlands in the 20th century. The first ever airlines were KLM airliner which was in operation was since 1919. The airport with highest fleet in Netherlands is Schiphol Airport and there are more than 60 million people who flies to around 330 destinations each year. Further, the airports in Netherland are made with the state-of-the art technology, innovative designs and logistics and holds a leading position in the European Union. Netherland is also considered as a thriving industry in terms of aircraft maintenance. Netherlands holds a strong position in the military aircraft industry as is able to partner with various companies for improvement of F-35 fighter jets. As of 2019, the airlines in Netherland were able to generate a revenue of $8.2 billion with a compound annual growth rate of 4.6% within a period of 2015 till 2019. There was an increase in the consumption volume of the airlines industry, where the CAGR reached 6.7% between 2015 till 2019. Further, it reached an amount of 46.2 million for the passenger in the year 2019 (Market Research, 2020).
Further, the aviation industry in Netherland is trying to acquire a leading position in terms of aircraft maintenance, electrification and acquire a leading position in the global industry in terms of aircraft maintenance based on the concept of revolutionary maintenance concepts for meeting the requirements of the aircraft users. The aviation sector in Netherland is trying to achieve a hub position for system and component maintenance. They also want to become top-class specialists in selling of aircraft materials in the international flight industry. They also want to contribute a climate-neutral aviation by 2050 based on innovative solutions with respect to cleaner, smoother and fuel-efficient aviation. These will be entirely based on the environmentally-friendly maintenance concepts. Finally, the Netherlands aviation sector wants to become the largest supplier of airport technology globally (NAG, 2022).
Corendon Airlines
Corendon Dutch Airlines is a Dutch charter as well as have scheduled charter aircrafts. It is headquartered in Lijnden, Haarlemmermeer. It is a subsidiary of Corendon Airlines of Europe. Corendon Dutch Airlines started its business operations in Netherland since April 2011. During the time of its operations, they had Boeing 737-800 aircraft. With these aircrafts the Netherland airliner was able to serve the holiday destinations of Europe by travelling from the main airport of Amsterdam, Schiphol Airport to Maastricht Aachen Airport which is located in Beek, Limburg. Further, Corendon Dutch Airlines travels to various destinations such as Brazil in South America, Cape Verde, Egypt and Gambia in Africa, Bulgaria, Greece, North Macedonia, Netherlands, Portugal, Spain, Turkey and Italy in Europe. As of August, 2021 the Corendon Dutch Airlines fleet consists of 2 types of aircraft. These are Boeing 737-800 and Boeing 737 MAX 9. There are 3 aircrafts in service with respect to Boeing 737-800 carrying 189 passengers and there are 2 Boeing 737 MAX 9 carries around 213 passengers (Corendon Dutch Airlines, 2022). Since the airliner travels to various destinations the prices vary.
Theoretical Background
Corendon Airlines started its business operations in the year April, 2005 with its international airline transportation to around 6 million travelers annually. The Dutch subsidiary of Corendon Airlines started its business operations in the year 2011. The European airlines company Corendon operates its flight from around 145 airports in more than 40 countries which are generally Germany, Belgium, Poland, Austria, France, Czech Republic, Romania and the Scandinavian countries. There are different business models used by Corendon Airlines for transportation of passengers and fleets from one country to another. These are the full charter, sub-charter, split charter and wet lease business models. Corendon Airline uses various airports as its base beside Antalya in Turkey, Hannover and Nurnberg in Germany. As on 2021, Corendon Airlines have started its business operations from Dusseldorf in Germany, Basel in Switzerland and London in UK. Presently, the Corendon Airlines is emphasizing on the UK Schedule for its summer flights in 2022. They have planned to operate with 41 flights per week for five airports in United Kingdom and five destinations in Greek island. Further, Corendon has recommended approximately for release of over 500000 seats for its flight to Turkey. Further, Corendon airlines is adding more destinations like Antalya (AYT), Glasgow (GLA), Birmingham (BHX) and Newcastle (NCL). Also, the flights from the new destination will take off twice per week (Ahlgren, 2021).
Airlines' Business Strategy for Operations
The first aim of Corendon Airline is to increase the revenue from the seat portion by approximately 75% by the end of financial year 2025. Further, Corendon Airlines offers seat only services as well as short term wet-lease out operations combined with full charter flights in Netherlands as well as for its global destinations. Further, it’s the responsibility of Corendon Airlines to implement a strategy which is aimed at using the state-of-art technology and implementing the same in an efficient manner. Therefore, the strategies which must be emphasized by Corendon Airlines will be based on the following factors and must be aimed towards enhancing the value of the aviation industry:
Firstly, Corendon must focus on its passenger’s safety and handling the luggage with care. This is the sole responsibility of the aviation company. There have been policies laid down by the aviation sector which emphasizes in the safety of the passengers. Further, there is a safety management system for all the airlines company. Therefore, a high level of safety is definite through the process of continuous upgradation for prevention of accidents and any incident which can result in loss of lives of passengers as well as damage of properties.
Secondly, there is necessity to reduce the red tape and various other burdens which are administrative in nature and can hamper the smooth business operations of Corendon. Hence, there is necessity for full collaboration and partnerships of Corendon airlines with various government and aviation sector of various countries for minimization of costs required for implementation of the safety measures. Often bureaucracy is suffocating in nature which ultimately leads to weak management structure which is unable to undergo the change management program (Wilkinson, 2021).
Thirdly, the accidents and unfortunate air incidents are points of learning and experiences for the airline companies. The accidents which negatively impacts the airline services as well as the aviation companies must be avoided at any cost. There are various types of transportation for travelling from one place to another but its is transit from one place to another which air travel is considered as a safest mode of transportation. Hence, it is the obligation of the air travelling airliner to relearn from the mistakes, the events which are still in existing mishaps and faults and reduce the occurance of such events.
Airline Route and Pricing
Corendon Airline is a Turkish registered airliner with its head office in Antalya, Turkey. Further, the airlines company operates its flights from the routes such as Ankara, Istanbul, Antalya, Berlin, Hanover, Brussels, Lyon, Paris and Basel. The airline operates in 36 routes throughout Europe and is also a low-cost carrier. The airlines help to contribute by generating huge returns to the Turkish tourism by flying in approximately 33 countries and operating in 128 airports. Further, they are able to transport around 2 million travelers on an annual basis. There are 1 Boeing 737-300 aircraft and 9 Boeing 737-800 aircraft available with Corendon airlines.
The lowest fare for a one-way tour from United Kingdom to Turkey or Greece is €48.54. A one-way flight from Amsterdam to Ankara located in Turkey is presently priced at €62.99 which is for the economic flight. The price for flex flights is €107.99 and for its premium travel it is €132.99 (Corendon Airlines, 2022)
Carry out Review of Level of Progress and Result Analysis:
Changes are extremely necessary for Corendon airlines and can deliver viable solution for the company for acquisition of market share in the airline industry. The employees may be resisting to changes which can be tough for the airlines company to operate smoothly. Therefore, the company may be using the AKDAR model of changes which will help to incorporate the strategies associated with the Change Management Model. According to the AKDAR policy, A is awareness where the employees of Corendon airlines will be made aware of the changes necessary for development of the company. K is knowledge with respect to application for bringing changes within the organization by Corendon. This can be through effective communication via email, face-to-face meeting and through teleconferences. D is the desire to participate and be a part of the change. This can be by considering the decisions of every employee and respecting their choices. This will help the employee to get motivated to bring the changes in Corendon. A is the ability to implement the obligatory skills and behavior for changing the company culture. The culture will help to support the objectives of Corendon. It will help to value its employees, increase the productivity and greater satisfaction with higher flexibility and retention of talents at efficient costs within the organization (Ralph, 2021). Finally, R is reinforcement for sustaining the changes within Corendon airlines. For sustaining changes Corendon airlines must introduce new and innovative ways for reducing the environmental footprints thereby conducting the holidays responsibly as a part of our business operations. This will ensure that the Corendon has an optimistic impact on the future of hotel destination anywhere in the world (Corendon, 2021).
Strategy to Bring Positive Change in Business Operations
Corendon airlines in order to bring about a positive change in the business operations of the company can emphasize on the below three strategies:
1. Revenue management: Corendon...