Date post: | 12-Jun-2015 |
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Royal Absolute Airlines
EREN KONGUPAMELA GUTIÉRREZ
PALOMA PÉREZTANGUY ROUSSEAUX
RAÚL MARKOSGEOFFROY BESLINJAVIER SÁNCHEZ
Index
I) Overview
II) Operations
III) Marketing
IV) Sales
V) Human Resources
VI) Finance
VII) Recommendations
Organizational Chart
Vision: We believe that travellers deserve the best.
Mission: Providing the best flying experience to our customers.
Strategy: Luxury Standard.
Slogan: An Absolute pleasure!
STRENGHTS WEAKNESSES • Good organization.• Relevant worksheets and records.• Great team cohesion• First in Quality.• First in Reliability.• Proper fare sales.• Adequate routes positioning.• More and more stable financial
statements.• Double designation with a major
airline.
• No dividends paid yet.• High cumulative net income.• Low employees’ compensations.• Three standard companies already in
the region.
OPPORTUNITIES THREATS
• We are they only standard-luxury company.
• Market shows potential good trends.
• Monopoly in market R.• Royal Absolute Airlines in top 3.
• Phoenix and Blue Wings in markets D and E.
• Skyline in routes 6F, 14F, 29F.• Flash in route 16F.• High prices pressure.• Increase in fuel price, cost per mile,
insurance.• Considerable marketing pressure.• Volatile demand.
Recommendations
SHORT TERM LONG TERM
• Focus on advertising (Q9 & Q10) & promotion (Q11) .
• Giving priority to internal employees rather than external people for new jobs positions.
• Keep the capital leasing.• Maintaining our $0,39 ticket
price. • Keep the trend of positive net
income.• Considerably increase our
Cash. • Increase passenger load on
markets F & R.• Reach break even point in 4D,
7E & 14F.
• Strengthen our brand notoriety/awareness.
• Continue to be the best employer of the industry.
• Maintain our 0% employee turnover.
• Increase our total market share to 25%.
• Be the leader in market F & R.• Enter market A.• Close markets D & E.• Keep our Standard luxury
strategy.• Get positive cumulative net
incomes• Pay dividends.• Reduce operating costs.• Increase our stock price.
Operations: Aircraft Schedule
Aircraft Type Quarter AircraftDaily Flights Total Miles max Miles Embraer Brasilia 1 1 4 1 580 2000
2 2 7 3 020 4 0003 2 9 3 780 4 000
Embraer ERJ135 4 2 12 4 800 4 8005 2 12 4 780 4 8006 2 11 4 780 4 8007 2 10 4 400 4 8008 2 11 4 820 4 800
1 2 3 4 5 6 7 80
1,000
2,000
3,000
4,000
5,000
6,000
Total Milesmax Miles
Fleet Decisions
Quarters Decisions taken
0 Sell 3 Beechcraft 1900 Lease 1 Embraer Brasilia
1 Lease 1 Embraer Brasilia
2 Keep our 2 leasing Embraer Brasilia
3 Terminate to lease 2 Embraer Brasilia Capital Lease of 2 Embraer ERF 135
4 Keep our 2 capital lease Embraer ERJ 135
5 Keep our 2 capital lease Embraer ERJ 135
6 Keep our 2 capital lease Embraer ERJ 135
7 Keep our 2 capital lease Embraer ERJ 135
8 Keep our 2 capital lease Embraer ERJ 135
Maintenance
Quarte
r 0
Quarte
r 1
Quarte
r 2
Quarte
r 3
Quarte
r 4
Quarte
r 5
Quarte
r 6
Quarte
r 7
Quarte
r 80
2
4
Maintenance Decisions (cost $ per aircraft per quarter)
Maintenance Decisions (cost $ per aircraft per quarter)
Quarte
r 0
Quarte
r 1
Quarte
r 2
Quarte
r 3
Quarte
r 4
Quarte
r 5
Quarte
r 6
Quarte
r 7
Quarte
r 80
100,000
200,000
300,000
400,000
500,000
Passenger Service Costs ($)Maintenance Costs ($)
Insurance
1 2 3 4 5 6 7 8 90
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Insurance
Fuel
General Increase: 0,14 USD Average Increase: 0,02 USD Assumed Increase: 0,02 USD
Q 0 Q 1 Q 2 Q 3 Q 4 Q 5 Q 6 Q 7 Q 8 0
0.2
0.4
0.6
0.8
1
1.2
1.4
Fuel Spot Price Fuel Contract
Operating Expense
1 2 3 4 5 6 7 8 9
-1,000,000
-500,000
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Operating Expense Operating Profit and Loss
1 2 3 4 5 6 7 8 9
-80%
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
ROAD in %
Load Factor
1 2 3 4 5 6 7 8 90.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Load Factor Break Even
Marketing
Marketing Investment
ROM Evolution
Seats Sold
Sales
Q0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q80%
2%
4%
6%
8%
10%
12%
14%
16%
18%17%
4%
6%7%
10%
17% 16%
15%
16%
Market Share
Absolute; 16.27%
Phoenix ; 16.21%
Blue Wings; 18.00%Skyline; 10.72%
UFC; 19.14%
Flash; 19.66%
4D
Absolute36%
Phoenix31%
Blue Wings33%
Absolute Phoenix Blue Wings
7E
Absolute41%
Phoenix24%
Blue Wings35%
Absolute Phoenix Blue Wings
14F
Abso-lute62%
Skyline38%
Absolute Skyline
26F
Absolute62%
Skyline38%
Absolute Skyline
16F
Abso-lute38%
Flash62%
Absolute Flash
6F
Abso-lute61%
Skyline39%
Absolute Skyline
100% Market Share in routes 19F, 17R
and 20R
Market F lights Available s eats
S eats s old P as s enger L oad
B reakeven Variation F are
4D 2 74 41 55,40% 60,04% -4,64% O ne month6F 1 37 23 62,20% 60,04% 2,16% O ne month7E 2 74 42 56,80% 60,04% -3,24% O ne month14F 1 37 21 56,80% 60,04% -3,24% O ne month16F 1 37 23 62,20% 60,04% 2,16% O ne month17R 1 37 28 75,70% 60,04% 15,66% O ne month19F 1 37 25 67,60% 60,04% 7,56% O ne month20R 1 37 28 75,70% 60,04% 15,66% O ne month26F 1 37 24 64,90% 60,04% 4,86% O ne month
Human Resources:Employee Turnover
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q80.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Training Budget
Q0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q80
5000
10000
15000
20000
25000
30000
10002000
4333
10500
14750
16250
20167
23333
26333
10002000 2000
20000 2000022000
24000 24000
27000
Average Industry Training Budget Absolute Budget
ROI of HR Budget
Q0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8
Ab-solute ROI
21.234 -185.469 -284.2055
-28.0762 -41.7309 -5.7539090909090
9
14.383541666666
7
7.0372083333333
3
6.3078148148148
2
Av-er-age In-dustry ROI
21.234 -64.9665 -27.542810985460
4
-12.464095238095
2
-10.210979333333
3
-0.5001770433566
43
7.3354407365167
5
4.0485864083772
6
2.9885694755629
8
-325.00
-275.00
-225.00
-175.00
-125.00
-75.00
-25.00
25.00
75.00
Absolute ROI Average Industry ROI
Finance: Evolution of Net Income & Gross Revenues
Q0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8
-1,500,000
-1,000,000
-500,000
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
Evolution
Gross Revenues Net Income
Finance ratios
Finance ratios
Finance ratios
CDs
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
Invested in CDsNet cash of Quarter
Balance Sheet
Efectivo $85,785 Inversiones a corto plazo $0
cuentas por recibir $596,304 Activos Circulantes
Totales $682,089
Coste Aeronave $2,500,000
Menos Depreciación -$800,000 Neto Aeronave $1,700,000
Instalaciones/Equipo-Neto $100,000 Total Activos Fijos $1,800,000
Total Activos $2,482,089
cuentas por pagar $344,070
Préstamos a Corto Plazo $150,000 Total actual de pasivos $494,070
Préstamos a Largo Plazo $300,000
Pasivo Total $794,070
acciones comunes $1,500,000 Beneficio Acumulado $188,019
Total Capital $1,688,019
Total Pasivo & Capital $2,482,089
P&LIngresos Brutos $1,490,761 100.0%
− Comisiones $135,659 9.1%
− Reembolsos $119,260 8.0%
+ Ingresos por Intereses
$0 0.0%
Ingresos Netos $1,235,842 82.9%
Operaciones de Vuelo $293,299 19.7%
Combustible $225,253 15.1%
Mantenimiento $254,192 17.1%
Servicio al Pasajero $195,532 13.1%
servicio de comida de cabina
$0 0.0%
Seguro $10,260 0.7%
Gastos de Marketing $5,000 0.3%
añadir Compensación Empleados
$0 0.0%
Calidad y Formación $1,000 0.1%
Contratación/costos de entrenamiento
$24,000 1.6%
presupuesto de labor social
$0 0.0%
Coste de Investigación de Mercados
$31,000 2.1%
Gastos de Intereses $10,500 0.7%
Pago Alquiler $0 0.0%
Gastos Administrativos
$100,000 6.7%
Depreciación $48,750 3.3%
Otros Gastos $0 0.0%
Gasto Total de Operaciones
$1,198,786 80.4%
Pérdida/Ganancias Operativa
$37,056 2.5%
Beneficios Netos Carga
$0 0.0%
Otros Ingresos $0 0.0%
Beneficios Antes de Impuestos
$37,056 2.5%
Menos Impuestos sobre la renta (40%)
$14,822 1.0%
Beneficios Netos $22,234 1.5%
dividendos pagados $2,000 0.01/sh
Cash Flow Statementefectivo a principio de periodo $93,521
redención de CD $0
ingresos brutos (60%) $894,457
cuentas por recibir $427,018
acciones vendidas $0
recursos de préstamo $0
otros ingresos $0
ingreso de efectivo totales (a) $1,414,996
comisiones + reembolsos $254,919
gastos operacionales (70%) $805,966
cuentas por pagar $245,504
impuestos sobre la renta $14,822
pago de préstamo $6,000
compra de CD $0
dividendos $2,000
compra de maquinaria $0
total de salida de efectivo (b) $1,329,211
efectivo neto (a)-(b) $85,785
préstamo de sobregiro $0
efectivo al final de periodo $85,785
Dividends
Q0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8
-2500000
-2000000
-1500000
-1000000
-500000
0
500000
Cummulative Net Income
Stock Price
Q0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
$50.00
Stock price