Paper , Order, or Assignment Requirements

Purpose:

In 2015, the world’s airlines carried around 3.5 billion passengers on

their scheduled services. The industry is characterised by several key

airline business models with the two most prominent being the full

service network (FSNC) and the low cost carrier (LCC) business models.

Despite being a high growth industry it is extremely cyclical in nature.

The purpose of this assignment is twofold: for students to clearly

communicate key issues about the revenue, cost structures and

profitability of both full service network (FSNC) and low cost carriers

(LCC) as well as to analyse and report on the revenue sources, cost

structures, fuel conservation strategies, and the importance of

profitability for a major full service network (FSNC) carrier.

Task Objective:

• Describe the revenue and cost structures of full service network

(FSNC) and low cost carriers (LCC)

• Discuss the approaches that have been taken to maximise

revenues and contain and reduce costs by both full service

network (FSNC) and low cost carriers (LCCs)

• Assess and report on the revenue sources as well as the

importance of ancillary (non-flying) revenues for the Air New

Zealand Group for the period 2007 to 2015

• Analyse and describe the various Air New Zealand Group costs for

the period 2007 to 2015

• Analyse and discuss the year-on-year trends in the Air New

Zealand Group fuel costs for the period 2007 to 2015

• Identify and discuss the fuel conservation strategies defined and

implemented by the Air New Zealand Group for the period 2007

to 2015

• Assess and explain the Air New Zealand Group annual profitability

trends for the period 2007 to 2015

• Identify and explain the key financial performance drivers of the

Air New Zealand Group for the period 2007 to 2015