8/6/2019 Airlines kant RATIO

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PRESENTED BY 

 Anshul

 Ashu Akkshita

Kriti

Nikhil

Pankaj

Shashikant

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BEFORESEGMENTATION

FOR 80% OCCUPANCY

(NO. OF SEATS)

TOTAL

COST/FLIGHT($)

TICKET

PRICE/PASSAN

GER($) REVENUE/FLIGHT($) PROFIT ($)

240 54800 250 60000 5200

rofitibility(sales) Profitibility(Cost)

Per passenger

cost

Per Passenger

Profit BEP(Units)

8.67% 9.49% 228.33 21.67 218

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 AFTER SEGMENTATION(ALL FIGURES IN $)

1ST CLASS BUSINESS

CLASS

ECONOM

 Y 

TOTAL

PASSANGER  24 72 144 240

COST 21566.67 22046.67 19546.66 63160

PRIC

E/TIC

KET1000 500 250 -

REVENUE 24000 36000 36000 96000

PROFIT 2433.33 13953.33 16453.33 32840

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List all the benefits to all stakeholders of 

the airlines? (a)Employees

(b)Customers

(c)Govt. orgs.(d)Investors

(e)Suppliers

Due to the segmentation airline co. hasmade huge profits than withoutsegmentation. Due to increase in profitsbenefits to the stakeholders are as follows:

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(a) EmployeesHigh salary,Increased wage,

(b) Increased incentives(b) Customer Fulfillment of their needs. 

Improved services leads to higher satisfaction(c) Govt. Orgs Higher taxes collection

(d) Suppliers Increase in profit as demand fromairline co. will increase

(e) Investors Higher dividend, Higher shareprice,Safety of Investment

made by  Creditors

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Who all could be the beneficiary?

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Do you think any segment is subsidising for any other segment? If so who to whom? If not why not?What do you understand by

absolute satisfaction and relativesatisfaction? Do you think any class may fill dissatisfied although absolutely

satisfied.when would that happen?Howwould management prevent it?

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 YES, ECONOMY CLASS SUBSIDIZES FIRSTCLASS

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  1ST

 

CLASS

BUSINESS

CLASS

ECONOMY TOTAL

PROFITABILITY(SALES) 10.14 38.76 45.70 34.21

PROFITABILITY(COST) 11.08 63.29 84.18 52

PER PASSENGER COST 898.61 306.20 132.27 263.17

PER PASSENGER PROFIT

101.39 193.80 117.73 136.83

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 W hen any customer compares its benefits to its cost andhe is satisfied i.e. his benefits are more than costs , than heis said to be absolutely satisfied.

But when he compares its cost and benefits to othercustomer and he is satisfied then he is said to be relatively satisfied.

� Yes he can be absolutely satisfied but relatively satisfied.

 W hen a customer finds his benefits are more than its cost,he is absolutely satisfied, but when he compares with it with any other class may it be of same company or

competitors company and he feels he has got less benefitin comparison to him/ her.

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 W hen can segmentation go wrong? How to avoid segmentation going wrong? 

 W hat precautions to take? 

Segmentation can go wrong when there is something wrong with market research:(1)Secondary data source is not reliable.

(2)Method of data collection is faulty .(3)Problem definition is wrong.

(4)Fault in sample unit, sample size and selection of sample(5)Mistakes in collection of information.

(6)Mistakes in analyzing information.