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时间：2022-03-15
AVIA3101
AIRLINE MANAGEMENT
SCHOOL OF AVIATION
FACULTY OF SCIENCE
SEMESTER 1, 2022
2
1. Staff
Position Name Email Consultation times
and locations
Contact Details
Course
Convenor
Dane Kondic d.kondic@unsw.edu
.au
During online
lectures or via email
Via email
Lecturers Dane Kondic
Dr Ian Douglas
d.kondic@unsw.edu
.au
ian.douglas@unsw.
edu.au
During online
lectures or via email
Via email
2. Course information
Units of credit: 6
Pre-requisite(s): Nil – but the subject should be taken at the correct stage of the degree
Teaching times and locations:
Component HPW Time Day Location
Lecture 2 1100 – 1300 Thu ONLINE
Tutorial 2 1400 – 1600 Thu ONLINE
Special Details
Lecture and tutorial times may be reversed to suit guest speakers. Occasionally
the schedule will be changed at short notice to meet an industry speaker’s needs.
2.1 Course summary
Airline Management is a vast topic – few people can become subject matter experts across the
broad spectrum that encompasses airline management in its entirety within a lifetime. This is also
the case in teaching such a subject over a 10 week semester. With an array of possible subject
matter, this course has as its focus, the main facets of corporate airline management and begins
with airline organisational practice, management's visions and objective setting. It proceeds with the
main corporate processes of business planning, network and fleet planning, schedule planning,
revenue management and consideration of key external factors, such as the prevailing regulatory
environment. Financial analysis, performance benchmarking and business model options are also
addressed
2.2 Course aims
The objective of the course is for students to obtain an appreciation of the airline industry’s main
drivers and to study the airline corporate planning process. The course will also emphasise group
activity, business presentation skills and the ability to deliver a superior research assignment.
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2.3 Course learning outcomes (CLO)
By the end of the course you will understand and be able to apply
• Airline economics in the changing regulatory environment.
• Airline industry business models, including an understanding of the important macro and
micro decisions made by airline management. This includes an appreciation of the tension
between the business planning process the operational environment.
• Business Planning and Strategic planning processes from both a generic and an airline
perspective.
• Airline scheduling and airline fleet planning
• Forecasting in airlines.
• Basic airline financial analysis and financial management.
• Airline alliances and commercial agreements
2.4 Relationship between course and program learning outcomes
and assessments
Course
Learning
Outcome
(CLO)
LO Statement Program Learning Outcome
(PLO)
Related Tasks &
Assessment
CLO 1 A comprehensive understanding of
what is needed for an airline to be
successful at both the commercial and
strategic level
-Research, inquiry &
analytical thinking abilities
-Critical thinking & problem
solving skills
-Ability to select & apply
aviation & business mgt
knowledge
-Understanding of ethical,
social and sustainability
issues
Individual
Assignment
Group simulation
and Assignment
Quiz
Final Exam
CLO 2 Gaining highly valuable insights into
the key issues impacting airlines
-Research, inquiry &
analytical thinking abilities
-Critical thinking & problem
solving skills
-Ability to select & apply
aviation & business mgt
knowledge
Individual
Assignment
Group simulation
and Assignment
Quiz
Final Exam
CLO 3 Understanding how to measure and
analyse airline performance, while
developing thought processes around
how to map out and manage issues of
- Research, inquiry &
analytical thinking abilities
-Ability to articulate complex
Individual
Assignment
Group simulation
4
strategic importance
issues
-Critical thinking & problem
solving skills
-Ability to select & apply
aviation & business mgt
knowledge
and Assignment
Quiz
Final Exam
CLO 4 Developing the ability to manage and
present solutions in solving the
complexities of various airline
management issues
-Teamwork, collaboration,
communication &
management skills
- Research, inquiry &
analytical thinking abilities
-Ability to articulate complex
issues
-Critical thinking & problem
solving skills
-Ability to select & apply
aviation & business mgt
knowledge
-Understanding of ethical,
social and sustainability
issues
Individual
Assignment
Group Simulation
and Assignment
Quiz
Final Exam
3. Strategies and approaches to learning
3.1 Learning and teaching activities
Teaching comprises lectures/tutorials/guest speakers/discussion and an online simulation that
provides a practical framework in which to test the subject content. Discussions on current aviation
issues are integral to this course. Class interaction is an important element and is strongly
encouraged. Students are expected to be aware of current issues in aviation. It is not possible to
successfully complete the subject without attending the lectures/tutorials and participating in group
activities.
The material presented will take different forms, including open discussion, case studies and
presentations from teams and individuals on assignments. Lectures and Tutorial sessions will also be
used to have guest speakers from industry to give talks on specialist areas and to emphasise
contemporary experience in the aviation industry. This emphasis helps prepare students for the
transition from study to work.
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3.2 Expectations of students
This course draws together much of the earlier learning in the degree and further provides students
with a unique opportunity to deepen their understanding of the key issues impacting the
management of airlines.
Teaching comprises lectures, tutorials, discussions, industry/guest speakers and an online simulation
that provides a practical interactive framework in which to apply and understand the subject
content. Discussions on current aviation/airline issues are integral to this course. Class and group
interaction is a critical element to the course and is strongly encouraged. It is not possible to
successfully complete the subject without engaging in the lecture / tutorial material, or by involving
yourself in group activities, which members of each group will decide how best they take place,
given the prevailing circumstances at that time. Student assessments (Quiz, Individual Assignment,
Group Assignment and Final Exam) allow students to immerse themselves in key airline
management issues and to critically assess the material presented during the course and to have a
clear view on how they might manage things differently. The lecturer provides the framework and
context to the course and works together with the industry guest speakers and students, to develop
their understanding of airline management issues.
An extensive list of suggested readings and videos will also be provided, which will help deepen
students’ understanding of contemporary issues within the industry. Students will be expected to
read and familiarise themselves with as much of the material as possible.
4. Course schedule and structure
Week Activity [Learning opportunity] Related CLO
Week 1
17 Feb 2022
AM Lecture: Course Introduction / Review of the Airline Industry
and Current Trends / Discussion of Regulatory Environment
Course introduction & industry overview
Guest Lecturer: Dr Ian Douglas – review of the airline industry /
current trends and forecasts, as well as an overview of the
regulatory frameworks that impact on airlines
PM Tutorial: Online Simulation workshop with SIMULATE.AERO
• Introduction to AIRLINE online simulation
• Group allocation
• Scenario analysis
1st TRIAL INPUT to the simulation – load by 2000h, Thu 17 Feb
Pre-reading from the suggested textbooks :-
1. Air Transport Management: An International
Perspective by Lucy Budd:-
• Chapter 1 – Aviation Law and Regulation
1, 2, 3 & 4
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2. The Routledge Companion to Air Transport Management
by Nigel Halpern & Anne Graham:-
• Chapter 1 – The Global Airline Industry
Week 2
24 Feb 2022
AM Lecture: Airline Finance, Analysis and Performance
Benchmarking.
o Reading a balance sheet and profit and loss statement.
o Airline financial structures and key metrics to assess
performance – revenue / costs / productivity
o The importance of forecasting and budgeting
o Pressures on Profit
Guest Speaker – Dimitri Courtelis (former CFO Air Berlin and Air
Serbia)
PM Tutorial: Online Simulation workshop with SIMULATE.AERO
2nd TRIAL INPUT to the simulation – load by 2000h, Mon 21 Feb
Pre-reading from the suggested textbooks :-
1. Air Transport Management: An International
Perspective by Lucy Budd:-
• Chapter 11 – Airline Finance
2. The Routledge Companion to Air Transport Management
by Nigel Halpern & Anne Graham:-
• Chapter 11 – Airline Economics and Finance
1, 2, 3 & 4
Week 3
3 Mar 2022
AM Lecture: Strategic & Business Planning
o An introduction to airline strategic management.
o Setting a strategy, building a plan, and the
importance in managing its implementation.
FSNC vs LCC business models – Fleet and Schedule
impacts
o The impact of operational issues on the Business Plan.
PM Tutorial: Online Simulation Workshop (work within your
groups on your decision making inputs – remember to keep
minutes of your meeting)
1st input to the simulation – load by 2000h, Mon 28 Feb
2nd input to the simulation – load by 2000h, Thu 3 Mar
1, 2, 3 & 4
QUIZ 1
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Pre-reading from the suggested textbooks :-
1. Air Transport Management: An International
Perspective by Lucy Budd:-
• Chapter 7 – Airline Business Models
2. The Routledge Companion to Air Transport Management
by Nigel Halpern & Anne Graham:-
• Chapter 8 – Evolving Airline and Airport Business Models
• Chapter 9 – Airline Business Strategy
Week 4
10 Mar 2022
AM Lecture: Network Planning
Guest Speaker – Scott Zeglin (Qantas Airways),
• Understanding Network Strategy and what drives this.
• The planning cycle and the impact of route studies
• The importance of analysis.
• The need to overlay market and competitive realities.
PM Tutorial: Online Simulation Workshop (work within your
groups on your decision making inputs – remember to keep
minutes of your meeting)
3rd input to the simulation – load by 2000h, Mon 7 Mar
4th input to the simulation – load by 2000h, Thu 10 Mar
Pre-reading from the suggested textbook :-
1. The Routledge Companion to Air Transport Management
by Nigel Halpern & Anne Graham:-
• Chapter 15 – Airline Capacity Planning and Management
• Chapter 19 – Patterns and Drivers of Demand for Air
Transport
15min Multiple Choice Online Quiz – 1400h on Thu, Mar 10
CENSUS DATE: 13 March
1, 2, 3 & 4
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Week 5
17 Mar 2022
AM Lecture: Fleet Planning - Forecasting and Analysis
Guest Speaker – Scott Zeglin (Qantas Airways),
• Understanding Fleet Strategy drivers.
• Aircraft orders are heavily focused on narrow-body
aircraft. What does this mean for network structure and
airport congestion?
• Focus on understanding business information, making
sense of competitor data, and project planning.
PM Tutorial: Online Simulation Workshop (work within your
groups on your decision making inputs – remember to keep
minutes of your meeting)
5th input to the simulation – load by 2000h, Mon 14 Mar
6th input to the simulation – load by 2000h, Thu 17 Mar
Pre-reading from the suggested textbook :-
1. The Routledge Companion to Air Transport Management
by Nigel Halpern & Anne Graham:-
• Chapter 15 – Airline Capacity Planning and Management
• Chapter 19 – Patterns and Drivers of Demand for Air
Transport
NB: Individual Assignments are due for submission by 2359h,
Sun, 20 Mar
1, 2, 3 & 4
Week 6
NO
LECTURES
Online Simulation
No lectures this week, but continue with your group simulation
and remember to keep minutes of your meeting
7th input to the simulation – load by 1800h, Mon 21 Mar
8th input to the simulation – load by 1800h, Sun 24 Mar
1, 2, 3 & 4
Week 7
31 Mar 2022
AM Lecture: Scheduling 1
Guest Speaker - Seena Sarram (formerly with Qatar and Qantas
Airways)
Introduction to Scheduling – Manual Schedule diagrams for basics
1, 2, 3 & 4
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(taking also into consideration curfews, slots, maintenance time
and other constraints).
PM Tutorial: Online Simulation Workshop (work within your
groups on your decision making inputs – remember to keep
minutes of your meeting)
9th input to the simulation – load by 2000h, Mon 28 Mar
10th input to the simulation – load by 2000h, Thu 31 Mar
Pre-reading from the suggested textbooks :-
1. Air Transport Management: An International
Perspective by Lucy Budd:-
• Chapter 10 – Airline Scheduling and Disruption
Management
2. The Routledge Companion to Air Transport Management
by Nigel Halpern & Anne Graham:-
• Chapter 15 – Airline Capacity Planning and Management
Week 8
7 Apr 2022
AM Lecture: Scheduling 2
Guest Speaker - Seena Sarram (formerly with Qatar and Qantas
Airways),
Scheduling software can optimize the network– but you need to
understand the underlying processes.
PM Tutorial: Online Simulation Workshop (work within your
groups on your decision making inputs – remember to keep
minutes of your meeting)
11th input to the simulation – load by 2000h, Mon 4 Apr
12th input to the simulation – load by 2000h, Thu 7 Apr
Pre-reading from the suggested textbooks :-
1. Air Transport Management: An International
Perspective by Lucy Budd:-
• Chapter 10 – Airline Scheduling and Disruption
Management
2. The Routledge Companion to Air Transport
Management by Nigel Halpern & Anne Graham:-
• Chapter 15 – Airline Capacity Planning and Management
1, 2, 3 & 4
Week 9
14 Apr 2022
AM Lecture: Revenue Management
Guest Lecturer – Kym Clarke (Revenue Management Consultant)
1, 2, 3 & 4
10
• What is revenue and yield management ?
• Why and how do airlines revenue manage ?
• Importance of recognising that no two passengers are
alike, so how do airlines discriminate between different
passenger segments in order to protect revenue and at
the same time, generate incremental revenue ?
PM Tutorial: Online Simulation Workshop (work within your
groups on your decision making inputs – remember to keep
minutes of your meeting)
13th input to the simulation – load by 2000h, Mon 11 Apr
14th input to the simulation – load by 2000h, Thu 14 Apr
Pre-reading from the suggested textbook :-
1. Air Transport Management: An International
Perspective by Lucy Budd:-
• Chapter 2 – Aviation Economics and Forecasting
• Chapter 8 – Airline Pricing Strategies
Week 10
21 Apr 2022
Group Power Point Presentations – Apr 21
Today, each group will be presenting their Powerpoint
presentations, covering requirements as outlined in Assignment
2. Each group will have a maximum of 10 mins (Note: Time limit
will be strictly applied)
NB:
1. Powerpoint Presentations are due for submission by
2359h on Tue, 19 Apr
2. Group Report and Peer Evaluation for Assignment 2, due
for submission by 2359h Tue, 26 Apr
1, 2, 3 & 4
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5. Assessment
5.1 Assessment tasks
Task
Knowledge & abilities assessed
Assessment Criteria
% of total
mark
Multiple
Choice Quiz
Lecture and reading material from
Weeks 1 to 3 (inclusive).
Online multiple-choice quiz to test
students understanding and
progress prior to Census date.
5%
Individual
Assignment
Airline scheduling, business model
strategy, research skills, critical
thinking and analysis.
Ability to research, analyse and
present data in a cohesive and
logical manner, providing
commercial rationale for the
effectiveness of the solution to the
assessable task.
25%
Group
Simulation,
Assignment
and Peer
Assessment
Critical assessment of how well
students can identify and manage
the day to day issues within an airline
via the online simulation and to then
identify and articulate key strategic
fleet and airline planning issues.
This assignment will integrate all of
the subject elements.
Work in a team to manage an
airline startup within the online
simulation. At the end of the
simulation, students will be
required to prepare and present a
10minute powerpoint presentation
and submit a detailed report on the
learnings from the simulation, with
a focus on evaluating key strategic
fleet and business issues for the
future of their airline.
20%
Final Exam
Assessment of students’
understanding of issues covered in
the course
On-line multiple choice exam
covering the entire lecture and
subject material presented.
50%
ASSIGNMENT ONE – INDIVIDUAL REPORT (25 marks)
Topic – Schedule planning
Background -
You are working on the launch of a new airline to be based at Kuala Lumpur in Malaysia, and
operating A320CEO aircraft with 180 seats. The airline has received traffic rights from MavCom to fly
the following frequencies.
• KUL-SIN 3 x daily (av fare $ 70 one way)
• KUL-CGK 2 x daily (av fare $120 one way)
• KUL-DPS 2 x daily (av fare $ 100 one way)
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• KUL-BKI-HKG 2 x daily (av fare KUL-BKI $70, BKI-HKG $70, HKG-KUL $140)
• KUL-BKK 2 x daily (av fare $ 90 one way)
• KUL-HKT 1 x daily (av fare $ 60 one way)
Assessable components –
1. Draw up a spreadsheet showing a possible 1 week pattern for the A320 fleet. You must
comply with any curfews.
2. Calculate the utilisation (hours/day) for the A320 fleet – you need to determine how many
aircraft are needed and justify your reasons why.
3. Calculate the WEEKLY RPKs, ASKs, Revenue, and R/ASK if the forecast network seat factor is
80%.
4. Using the following block hour costs, what routes are profitable?
A320 (based on typical industry block hour values)
Crew $428
Fuel $2,378
Aircraft $530 (lease or ownership cost)
Distribution $433 (sales/marketing/commissions etc)
Insurance $33
Other $45
TOTAL/HR $3,847
Please make sure that you submit this assignment as a report. Do NOT submit a long narrative. It is
best to address each element of the assignment by each of the 4 tasks/questions that you are being
asked. This ensures that you do not miss anything and it is much easier to mark as well. However, it
is still an academic paper, so be sure to use the correct academic referencing wherever
necessary/relevant. The finalised report and spreadsheet is be submitted via Moodle Turn-it-in, no
later than 2359h, Sunday March 21. The Report must be done individually and requires:
• the preparation of an excel spreadsheet showing the proposed 1 week flying pattern, and
• a brief analytical report of 500 words to support the remainder of the assessment
requirements(+/- 10%).
The report must be DEVELOPED FROM YOUR OWN ANALYSIS. Evidence of critical thinking and
analysis is the key driver of good marks for this assignment.
A generic paper on airline schedule planning will NOT be adequate. You must apply your knowledge
to the specific schedule question. Papers that do not integrate theory and analysis will score poor
marks.
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In order to complete this assignment, it is important to make use of the GREAT CIRCLE MAPPER
resource online (www.gcmap.com) . This will allow you to calculate distances between city pairs
(remember to use km’s NOT miles), as well as block times.
ASSIGNMENT TWO – GROUP WORK (20 marks)
Background –
UNSW has for some time now, been working with SIMULATE.AERO – a company which offers a
number of different simulation software products that are used to aid in the student learning
outcomes. This course will use the “AIRLINE Online” product – an interactive learning tool that will
have you run and manage an airline over the duration of the semester. The other main product that
this company offers is “AIRPORT Online”, which is used in the subject 3851 Airport Management 2.
This software will provide you with a rich interactive learning experience, within a competitive
environment. It will add enormous value to your learning outcomes for this subject and will provide
you with real life experiences in the day to day running and management of an airline. Successful
completion of this simulation, will bring together and integrate your understanding and knowledge
of all of the major subject areas of the course.
When it comes to learning business management skills, one of the best teachers is experience. The
most effective way to expose students to the pressures and practices behind business making
decisions, is to simulate the corporate environment as realistically as possible. “AIRLINE Online” is a
management simulation based around the planning, establishment and operation of an airline.
Task –
Students will be randomly allocated to a group. Subject to final numbers, the aim is to have between
5 – 6 members per group. That should give us up to 20 groups. Once finalised, each group will be
responsible to manage their airline from start up.
The scenario proposes that your airline be European based, initially as a narrow body operator,
given that the environment will be with a focus on Europe. The type of business model you choose,
together with the aircraft type and how many, what network you will build, what schedule you will
operate, what pricing you will adopt, as well as the product proposition, will be entirely your choice.
In order to operate effectively as a team, it is advisable that you allocate functional responsibilities
amongst each group member. You will need to pay regard to the competitive environment ie. what
other groups do, as that will be your competitive set and will drive your decision making from
decision to decision.
Twice every week (Monday and Thursday evenings from Week 3 onwards), you will be required to
make certain decisions and then input these into the simulation. Your decisions will need to be
entered no later than 2000h. The system administrator will batch run the simulation overnight and
the results will be available the following day. You will then need to determine the impact of the
various decisions that you as the management team of that particular airline have taken. You will
need to regularly meet to review the impact of your decisions, to be able to then make further
informed decisions regarding your airline. The weekly tutorial time between 2-4pm, has been set
aside for you to meet to undertake this review and decision making process.
Each batch run will represent a 3 month period, so with 14 decisions in total, the simulation will
cover a period of 3.5 years.
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Twice every week (Monday and Thursday evenings), the system administrator will batch run the
simulation, which will then determine the impact of the various decisions that you as the management
team of that particular airport have taken. The simulation proper, will commence with the first decision
to be submitted in Week 3, on Monday, Feb 28. Prior to this, you will have the opportunity to
familiarise yourself with the software by entering 2 decisions (the first on Thu, Feb 17 and the second
on Mon, Feb 21). These 2 decision inputs will NOT count and will purely serve the purpose of
allowing students to familiarise themselves and to understand the capabilities of the software. These
decisions will be reset and the simulation will commence proper, on Mon Feb 28. As you progress
through the simulation, you will become better and more familiar with the software, so don’t get too
concerned at the start, as everyone will be learning at the same time.
A lot of resources regarding the software will be posted into Moodle at the commencement of T1. My
strong advice is to familiarise yourself with the material as much as possible prior to the introduction
tutorial on Thu, Feb 17. A second followup tutorial to help students and allow for further Q&A’s with
the software provider, will be held in Week 2, on Thu Feb 24.
When the simulation commences proper (Week 3 Feb 28), you will need to meet regularly to both
make and review your decisions, to be able to then make further informed decisions regarding your
airline. The weekly tutorial time between 2-4pm, has been set aside for you to meet to undertake this
review and decision-making process. Each batch run will represent a 3 month period, so with 14
decisions in total, the simulation will cover a period of 3.5 years.
Over the course of the simulation, external unforeseen events will crop up, which will force you to
consider the impact that these events will have on your airline and in turn, require you to make
decisions that you may not have otherwise expected.
The aim here is to try to simulate an environment which mirrors what airlines the world over have to
deal with in running their day to day businesses. This will also test your abilities to understand the
consequences that such unexpected events create and then in how you respond to these. With
some events, it may result in opportunities, or they may present new threats. This is all part and
parcel of the competitive landscape that airlines have to manage.
You will be expected to keep minutes of each weekly meeting. These must include details of the
following:
1. Airline Name / Group #
2. Date / Time of meeting
3. Group members present / absent
4. Decisions taken
This is critical as it will need to be submitted with your final group report (as an appendix) at the end of
the term. It will also provide evidence/support to show the contribution of each group member
throughout the entire term. Failure to provide complete details of each weekly meeting in the format
prescribed above, will result in the group losing marks. The lecturer will from time to time ask for
submission of your minutes to check on each group’s progress and to ensure that you are keeping
this up to date. Therefore, be sure to keep updated and accurate records on a weekly basis.
Assessable components –
At the end of Week 9, the simulation will end and you will need to undertake the following work
which will form the basis of the assessment for Assignment 2:
The end game, is to write a report and make a presentation on the BUSINESS PLAN FOR YOUR
AIRLINE.
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To start with, you will need to outline your airline’s mission/vision, objectives, and strategies. These
are established when you set out the initial input to the simulation. You should also explain your
organisational structure and describe your airline’s strengths and weaknesses. Give some insights
into your airline’s brand – how did you get to decide on the name and why. It is also expected that
you undertake a competitive analysis and which airlines, if any, you see as direct competitors (or
competitive threats) and who your competitive benchmarking is set against.
You are now ready to report on a number of management issues.
Part 1 – Group Presentation (5 marks)
You will be required to prepare and make a BRIEF powerpoint presentation during Week 10 (target
date is Thursday, April 22), which should be for a maximum time of 10minutes only. The
presentation should choose the most important messages that you want to convey, which will best
and fairly show how your airline performed and what you learnt from the simulation and more
importantly, the future plans for your airline. A review of what went right, what went wrong and
how your future plans are shaped by these outcomes and the competitive environment, is your best
guide of what material to cover in the presentation. It should at the very least, cover the most
important elements from your detailed group report.
Remember, the presentation should not be detailed or be over elaborate. It will need to be clear and
succinct and support what your written report will cover in greater detail. You only have 10 minutes
and this will be strictly enforced. Presentations exceeding this time limit will be penalised.
Each group’s powerpoint presentation must be submitted via email (d.kondic@unsw.edu.com.au) to
the lecturer, no later than 2359h, Tuesday, April 20.
Part 2 – Written Group Report (Total of 12 marks)
• Forecasting and Budgeting (4 marks)
Draw up the aircraft patterns for a sample week of your airline timetable. i.e. schedule the
aircraft covering the routes you operate. Demonstrate the maintenance slots for the whole
fleet, and the city in which the maintenance takes place. You will have noted from the
simulation that curfews apply at many airports. You are only required to show a typical 1
week operation at any point of your future 5 year plan. This is meant to reinforce the
learnings from Assignment 1 so that everyone is clear as to how to present a 1 week
scheduled operating pattern.
Once the patterns are completed the next part of the task is to;
Create a revenue and expenditure budget for the airline using information from the
simulation where appropriate. Demonstrate airfares and cost elements where appropriate.
Show route profits, seat factors, overall profit and loss, and other financial indicators.
Costs will be presented on a cents per ASK basis rather than making a detailed examination
of all cost items. You should be sure to show how this develops over the 5 years of your
future business plan
• Fleet and Business Plan / Strategy (8marks)
Your airline is preparing a REALISTIC fleet plan for five years. Using decision 14 of the
simulation as your base year – project 5 future years in your fleet and business plan. The
aircraft options for consideration are B737 family, A320 family, Embraer 170-195, B787,
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A330-200/300, A350. You should also consider the option of using/retaining older aircraft –
and analyse the ownership cost trade-off. Do a fleet planning study. Make sure that you
have a logical and coherent plan for your 5 year future strategy.
The scope and format of the report is open and therefore not prescriptive. This is intentional, as I am
interested to see how each group will think about its journey throughout the simulation and then
how it will relate these learnings back to the course content and ultimately, in what each group
chooses to present in its report. However, it must be practical and realistic and remember, the
report should include and demonstrate your key learnings from the simulation.
Your report is therefore likely to cover many factors, but your best guide is to look back over the
course during the semester and determine which of the various topics covered from week to week,
will provide you with the best, most insightful and useful subject areas to include.
Perhaps the most important aspect of this assignment, is in not devoting the majority of the report
to what happened in the simulation, but rather, in taking the learnings and performance of your
airline and shaping these into a strategic plan for the future. As the management team of your
airline, what would you see as the priorities and why ? Please be sure to support your vision and
analysis with strong and compelling arguments, backed up by data wherever relevant.
I would also suggest that you present this as a report rather than as a typical long form written
academic narrative. But remember, it is still an academic paper, so be sure to reference any relevant
material you include in your report, as well as to include a bibliography.
Finally, a reminder to submit as an appendix to your group report, the minutes of your weekly group
meetings. Failure to do so will result in a loss of marks.
The finalised report is be submitted via Moodle, no later than 2359h, Tuesday April 26.
Part 3 – Group Participation (3 marks)
Group work means exactly that – all group members are expected to contribute to the overall effort
and output of the group. To ensure that all group members are involved and that the effort and
contribution is fair and equitable, peer assessment will be used. This means that each member of the
group will submit a score out of 3 (3 being equal contribution by all and 0 being little to no input) for
each member of their group (excluding yourself). This will be confidential and known only to the
lecturer, who will tabulate each input and provide a score for each person in the group in order to
evaluate each members contribution to the overall effort. Failure to do so or to submit this, will result
in a mark of 0 for the student who fails to submit a score.
Peer assessment is also critical as it will determine the mark that each student will receive for the
group report. In other words, the peer score will result in a weighted group score, which will work as
follows:
1. A peer score of 3 = 100% of the group mark
2. A peer score of 2 = 75% of the group mark
3. A peer score of 1 = 50% of the group mark
4. A peer score of 0 = 0% of the group mark.
All of this is designed to ensure that everyone is incentivised to contribute equally to the group work
from the start of the term, otherwise, you will receive a mark that ultimately reflects your contribution
over the course of the entire semester. Hence, this is in your hands from the outset – contribute
17
equally and no one will be penalised or risk losing marks due to the work not being shared equitably
across the group.
When submitting the peer assessment, please be sure to use the pro-forma provided for your use. It
is available in Moodle for you to complete and submit. Be sure to complete all details – failure of
which to do so, will result in a loss of marks.
The peer assessment is be submitted via Moodle, no later than 2359h, Tuesday, April 26.
Further information
UNSW grading system: https://student.unsw.edu.au/grades
UNSW assessment policy: https://student.unsw.edu.au/assessment
5.2 Assessment criteria and standards
As this is a 3rd year subject, students are expected to bring both the learning from earlier subjects
and their skills in critical thinking and analysis to assessment tasks. Success comes from
understanding rather than memorisation.
5.3 Submission of assessment tasks
Assignments will be submitted through Moodle.
6. Academic integrity, referencing and plagiarism
Referencing is a way of acknowledging the sources of information that you use to research your
assignments. You need to provide a reference whenever you draw on someone else's words, ideas
or research. Not referencing other people's work can constitute plagiarism. The standard for this
course is Harvard: Author (year). Please do not use footnotes.
Further information about referencing styles can be located at
https://student.unsw.edu.au/referencing
Academic integrity is fundamental to success at university. Academic integrity can be defined as a
commitment to six fundamental values in academic pursuits: honesty, trust, fairness, respect,
responsibility and courage.1 At UNSW, this means that your work must be your own, and others’
ideas should be appropriately acknowledged. If you don’t follow these rules, plagiarism may be
detected in your work.
Further information about academic integrity and plagiarism can be located at:
• The Current Students site https://student.unsw.edu.au/plagiarism, and
• The ELISE training site http://subjectguides.library.unsw.edu.au/elise/presenting
The Conduct and Integrity Unit provides further resources to assist you to understand your conduct
obligations as a student: https://student.unsw.edu.au/conduct.
1 International Center for Academic Integrity, ‘The Fundamental Values of Academic Integrity’, T.
Fishman (ed), Clemson University, 2013.
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7. Readings and resources
SUGGESTED TEXTS THAT WILL BE USED AND REFERENCED THROUGHOUT THIS SUBJECT:
1. Budd, L 2017 (ed) Air Transport Management: An International Perspective
(https://www.taylorfrancis.com/books/air-transport-management-lucy-budd-stephen-
ison/e/10.4324/9781315566351)
2. Halpern, N and Graham, A (Routledge, 2018) - The Routledge Companion to Air Transport
Management (https://www.routledge.com/The-Routledge-Companion-to-Air-Transport-
Management/Halpern-Graham/p/book/9780367656140)
Relevant articles and links will also be posted within Moodle to assist students in deepening their
understanding of weekly subject matter presented.
8. Administrative matters
School Contact
Katie Wang
Undergraduate Studies
School of Aviation
Tel: + 61 2 9385 5756, Email: aviab@unsw.edu.au
Faculty Contact
Dr Chris Tisdell
Associate Dean (Education)
Tel: (02) 9385 6792, Email: cct@unsw.edu.au
or
Dr Gavin Edwards
Associate Dean (Academic Programs)
Tel: (02) 9385 4652, Email: g.edwards@unsw.edu.au
University Contact
Student Conduct and Appeals Officer (SCAO) within the Office of the Pro-Vice-Chancellor (Students)
and Registrar.
Tel: (02) 9385 8515, Email: studentcomplaints@unsw.edu.au
University Counselling and Psychological Services2
Tel: (02) 9385 5418
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9. Additional support for students
• The Current Students Gateway: https://student.unsw.edu.au/
• Academic Skills and Support: https://student.unsw.edu.au/academic-skills
• Student Wellbeing, Health and Safety: https://student.unsw.edu.au/wellbeing
• Disability Support Services: https://student.unsw.edu.au/disability-services
• UNSW IT Service Centre: https://www.it.unsw.edu.au/students/index.html
AIRLINE MANAGEMENT
SCHOOL OF AVIATION
FACULTY OF SCIENCE
SEMESTER 1, 2022
2
1. Staff
Position Name Email Consultation times
and locations
Contact Details
Course
Convenor
Dane Kondic d.kondic@unsw.edu
.au
During online
lectures or via email
Via email
Lecturers Dane Kondic
Dr Ian Douglas
d.kondic@unsw.edu
.au
ian.douglas@unsw.
edu.au
During online
lectures or via email
Via email
2. Course information
Units of credit: 6
Pre-requisite(s): Nil – but the subject should be taken at the correct stage of the degree
Teaching times and locations:
Component HPW Time Day Location
Lecture 2 1100 – 1300 Thu ONLINE
Tutorial 2 1400 – 1600 Thu ONLINE
Special Details
Lecture and tutorial times may be reversed to suit guest speakers. Occasionally
the schedule will be changed at short notice to meet an industry speaker’s needs.
2.1 Course summary
Airline Management is a vast topic – few people can become subject matter experts across the
broad spectrum that encompasses airline management in its entirety within a lifetime. This is also
the case in teaching such a subject over a 10 week semester. With an array of possible subject
matter, this course has as its focus, the main facets of corporate airline management and begins
with airline organisational practice, management's visions and objective setting. It proceeds with the
main corporate processes of business planning, network and fleet planning, schedule planning,
revenue management and consideration of key external factors, such as the prevailing regulatory
environment. Financial analysis, performance benchmarking and business model options are also
addressed
2.2 Course aims
The objective of the course is for students to obtain an appreciation of the airline industry’s main
drivers and to study the airline corporate planning process. The course will also emphasise group
activity, business presentation skills and the ability to deliver a superior research assignment.
3
2.3 Course learning outcomes (CLO)
By the end of the course you will understand and be able to apply
• Airline economics in the changing regulatory environment.
• Airline industry business models, including an understanding of the important macro and
micro decisions made by airline management. This includes an appreciation of the tension
between the business planning process the operational environment.
• Business Planning and Strategic planning processes from both a generic and an airline
perspective.
• Airline scheduling and airline fleet planning
• Forecasting in airlines.
• Basic airline financial analysis and financial management.
• Airline alliances and commercial agreements
2.4 Relationship between course and program learning outcomes
and assessments
Course
Learning
Outcome
(CLO)
LO Statement Program Learning Outcome
(PLO)
Related Tasks &
Assessment
CLO 1 A comprehensive understanding of
what is needed for an airline to be
successful at both the commercial and
strategic level
-Research, inquiry &
analytical thinking abilities
-Critical thinking & problem
solving skills
-Ability to select & apply
aviation & business mgt
knowledge
-Understanding of ethical,
social and sustainability
issues
Individual
Assignment
Group simulation
and Assignment
Quiz
Final Exam
CLO 2 Gaining highly valuable insights into
the key issues impacting airlines
-Research, inquiry &
analytical thinking abilities
-Critical thinking & problem
solving skills
-Ability to select & apply
aviation & business mgt
knowledge
Individual
Assignment
Group simulation
and Assignment
Quiz
Final Exam
CLO 3 Understanding how to measure and
analyse airline performance, while
developing thought processes around
how to map out and manage issues of
- Research, inquiry &
analytical thinking abilities
-Ability to articulate complex
Individual
Assignment
Group simulation
4
strategic importance
issues
-Critical thinking & problem
solving skills
-Ability to select & apply
aviation & business mgt
knowledge
and Assignment
Quiz
Final Exam
CLO 4 Developing the ability to manage and
present solutions in solving the
complexities of various airline
management issues
-Teamwork, collaboration,
communication &
management skills
- Research, inquiry &
analytical thinking abilities
-Ability to articulate complex
issues
-Critical thinking & problem
solving skills
-Ability to select & apply
aviation & business mgt
knowledge
-Understanding of ethical,
social and sustainability
issues
Individual
Assignment
Group Simulation
and Assignment
Quiz
Final Exam
3. Strategies and approaches to learning
3.1 Learning and teaching activities
Teaching comprises lectures/tutorials/guest speakers/discussion and an online simulation that
provides a practical framework in which to test the subject content. Discussions on current aviation
issues are integral to this course. Class interaction is an important element and is strongly
encouraged. Students are expected to be aware of current issues in aviation. It is not possible to
successfully complete the subject without attending the lectures/tutorials and participating in group
activities.
The material presented will take different forms, including open discussion, case studies and
presentations from teams and individuals on assignments. Lectures and Tutorial sessions will also be
used to have guest speakers from industry to give talks on specialist areas and to emphasise
contemporary experience in the aviation industry. This emphasis helps prepare students for the
transition from study to work.
5
3.2 Expectations of students
This course draws together much of the earlier learning in the degree and further provides students
with a unique opportunity to deepen their understanding of the key issues impacting the
management of airlines.
Teaching comprises lectures, tutorials, discussions, industry/guest speakers and an online simulation
that provides a practical interactive framework in which to apply and understand the subject
content. Discussions on current aviation/airline issues are integral to this course. Class and group
interaction is a critical element to the course and is strongly encouraged. It is not possible to
successfully complete the subject without engaging in the lecture / tutorial material, or by involving
yourself in group activities, which members of each group will decide how best they take place,
given the prevailing circumstances at that time. Student assessments (Quiz, Individual Assignment,
Group Assignment and Final Exam) allow students to immerse themselves in key airline
management issues and to critically assess the material presented during the course and to have a
clear view on how they might manage things differently. The lecturer provides the framework and
context to the course and works together with the industry guest speakers and students, to develop
their understanding of airline management issues.
An extensive list of suggested readings and videos will also be provided, which will help deepen
students’ understanding of contemporary issues within the industry. Students will be expected to
read and familiarise themselves with as much of the material as possible.
4. Course schedule and structure
Week Activity [Learning opportunity] Related CLO
Week 1
17 Feb 2022
AM Lecture: Course Introduction / Review of the Airline Industry
and Current Trends / Discussion of Regulatory Environment
Course introduction & industry overview
Guest Lecturer: Dr Ian Douglas – review of the airline industry /
current trends and forecasts, as well as an overview of the
regulatory frameworks that impact on airlines
PM Tutorial: Online Simulation workshop with SIMULATE.AERO
• Introduction to AIRLINE online simulation
• Group allocation
• Scenario analysis
1st TRIAL INPUT to the simulation – load by 2000h, Thu 17 Feb
Pre-reading from the suggested textbooks :-
1. Air Transport Management: An International
Perspective by Lucy Budd:-
• Chapter 1 – Aviation Law and Regulation
1, 2, 3 & 4
6
2. The Routledge Companion to Air Transport Management
by Nigel Halpern & Anne Graham:-
• Chapter 1 – The Global Airline Industry
Week 2
24 Feb 2022
AM Lecture: Airline Finance, Analysis and Performance
Benchmarking.
o Reading a balance sheet and profit and loss statement.
o Airline financial structures and key metrics to assess
performance – revenue / costs / productivity
o The importance of forecasting and budgeting
o Pressures on Profit
Guest Speaker – Dimitri Courtelis (former CFO Air Berlin and Air
Serbia)
PM Tutorial: Online Simulation workshop with SIMULATE.AERO
2nd TRIAL INPUT to the simulation – load by 2000h, Mon 21 Feb
Pre-reading from the suggested textbooks :-
1. Air Transport Management: An International
Perspective by Lucy Budd:-
• Chapter 11 – Airline Finance
2. The Routledge Companion to Air Transport Management
by Nigel Halpern & Anne Graham:-
• Chapter 11 – Airline Economics and Finance
1, 2, 3 & 4
Week 3
3 Mar 2022
AM Lecture: Strategic & Business Planning
o An introduction to airline strategic management.
o Setting a strategy, building a plan, and the
importance in managing its implementation.
FSNC vs LCC business models – Fleet and Schedule
impacts
o The impact of operational issues on the Business Plan.
PM Tutorial: Online Simulation Workshop (work within your
groups on your decision making inputs – remember to keep
minutes of your meeting)
1st input to the simulation – load by 2000h, Mon 28 Feb
2nd input to the simulation – load by 2000h, Thu 3 Mar
1, 2, 3 & 4
QUIZ 1
7
Pre-reading from the suggested textbooks :-
1. Air Transport Management: An International
Perspective by Lucy Budd:-
• Chapter 7 – Airline Business Models
2. The Routledge Companion to Air Transport Management
by Nigel Halpern & Anne Graham:-
• Chapter 8 – Evolving Airline and Airport Business Models
• Chapter 9 – Airline Business Strategy
Week 4
10 Mar 2022
AM Lecture: Network Planning
Guest Speaker – Scott Zeglin (Qantas Airways),
• Understanding Network Strategy and what drives this.
• The planning cycle and the impact of route studies
• The importance of analysis.
• The need to overlay market and competitive realities.
PM Tutorial: Online Simulation Workshop (work within your
groups on your decision making inputs – remember to keep
minutes of your meeting)
3rd input to the simulation – load by 2000h, Mon 7 Mar
4th input to the simulation – load by 2000h, Thu 10 Mar
Pre-reading from the suggested textbook :-
1. The Routledge Companion to Air Transport Management
by Nigel Halpern & Anne Graham:-
• Chapter 15 – Airline Capacity Planning and Management
• Chapter 19 – Patterns and Drivers of Demand for Air
Transport
15min Multiple Choice Online Quiz – 1400h on Thu, Mar 10
CENSUS DATE: 13 March
1, 2, 3 & 4
8
Week 5
17 Mar 2022
AM Lecture: Fleet Planning - Forecasting and Analysis
Guest Speaker – Scott Zeglin (Qantas Airways),
• Understanding Fleet Strategy drivers.
• Aircraft orders are heavily focused on narrow-body
aircraft. What does this mean for network structure and
airport congestion?
• Focus on understanding business information, making
sense of competitor data, and project planning.
PM Tutorial: Online Simulation Workshop (work within your
groups on your decision making inputs – remember to keep
minutes of your meeting)
5th input to the simulation – load by 2000h, Mon 14 Mar
6th input to the simulation – load by 2000h, Thu 17 Mar
Pre-reading from the suggested textbook :-
1. The Routledge Companion to Air Transport Management
by Nigel Halpern & Anne Graham:-
• Chapter 15 – Airline Capacity Planning and Management
• Chapter 19 – Patterns and Drivers of Demand for Air
Transport
NB: Individual Assignments are due for submission by 2359h,
Sun, 20 Mar
1, 2, 3 & 4
Week 6
NO
LECTURES
Online Simulation
No lectures this week, but continue with your group simulation
and remember to keep minutes of your meeting
7th input to the simulation – load by 1800h, Mon 21 Mar
8th input to the simulation – load by 1800h, Sun 24 Mar
1, 2, 3 & 4
Week 7
31 Mar 2022
AM Lecture: Scheduling 1
Guest Speaker - Seena Sarram (formerly with Qatar and Qantas
Airways)
Introduction to Scheduling – Manual Schedule diagrams for basics
1, 2, 3 & 4
9
(taking also into consideration curfews, slots, maintenance time
and other constraints).
PM Tutorial: Online Simulation Workshop (work within your
groups on your decision making inputs – remember to keep
minutes of your meeting)
9th input to the simulation – load by 2000h, Mon 28 Mar
10th input to the simulation – load by 2000h, Thu 31 Mar
Pre-reading from the suggested textbooks :-
1. Air Transport Management: An International
Perspective by Lucy Budd:-
• Chapter 10 – Airline Scheduling and Disruption
Management
2. The Routledge Companion to Air Transport Management
by Nigel Halpern & Anne Graham:-
• Chapter 15 – Airline Capacity Planning and Management
Week 8
7 Apr 2022
AM Lecture: Scheduling 2
Guest Speaker - Seena Sarram (formerly with Qatar and Qantas
Airways),
Scheduling software can optimize the network– but you need to
understand the underlying processes.
PM Tutorial: Online Simulation Workshop (work within your
groups on your decision making inputs – remember to keep
minutes of your meeting)
11th input to the simulation – load by 2000h, Mon 4 Apr
12th input to the simulation – load by 2000h, Thu 7 Apr
Pre-reading from the suggested textbooks :-
1. Air Transport Management: An International
Perspective by Lucy Budd:-
• Chapter 10 – Airline Scheduling and Disruption
Management
2. The Routledge Companion to Air Transport
Management by Nigel Halpern & Anne Graham:-
• Chapter 15 – Airline Capacity Planning and Management
1, 2, 3 & 4
Week 9
14 Apr 2022
AM Lecture: Revenue Management
Guest Lecturer – Kym Clarke (Revenue Management Consultant)
1, 2, 3 & 4
10
• What is revenue and yield management ?
• Why and how do airlines revenue manage ?
• Importance of recognising that no two passengers are
alike, so how do airlines discriminate between different
passenger segments in order to protect revenue and at
the same time, generate incremental revenue ?
PM Tutorial: Online Simulation Workshop (work within your
groups on your decision making inputs – remember to keep
minutes of your meeting)
13th input to the simulation – load by 2000h, Mon 11 Apr
14th input to the simulation – load by 2000h, Thu 14 Apr
Pre-reading from the suggested textbook :-
1. Air Transport Management: An International
Perspective by Lucy Budd:-
• Chapter 2 – Aviation Economics and Forecasting
• Chapter 8 – Airline Pricing Strategies
Week 10
21 Apr 2022
Group Power Point Presentations – Apr 21
Today, each group will be presenting their Powerpoint
presentations, covering requirements as outlined in Assignment
2. Each group will have a maximum of 10 mins (Note: Time limit
will be strictly applied)
NB:
1. Powerpoint Presentations are due for submission by
2359h on Tue, 19 Apr
2. Group Report and Peer Evaluation for Assignment 2, due
for submission by 2359h Tue, 26 Apr
1, 2, 3 & 4
11
5. Assessment
5.1 Assessment tasks
Task
Knowledge & abilities assessed
Assessment Criteria
% of total
mark
Multiple
Choice Quiz
Lecture and reading material from
Weeks 1 to 3 (inclusive).
Online multiple-choice quiz to test
students understanding and
progress prior to Census date.
5%
Individual
Assignment
Airline scheduling, business model
strategy, research skills, critical
thinking and analysis.
Ability to research, analyse and
present data in a cohesive and
logical manner, providing
commercial rationale for the
effectiveness of the solution to the
assessable task.
25%
Group
Simulation,
Assignment
and Peer
Assessment
Critical assessment of how well
students can identify and manage
the day to day issues within an airline
via the online simulation and to then
identify and articulate key strategic
fleet and airline planning issues.
This assignment will integrate all of
the subject elements.
Work in a team to manage an
airline startup within the online
simulation. At the end of the
simulation, students will be
required to prepare and present a
10minute powerpoint presentation
and submit a detailed report on the
learnings from the simulation, with
a focus on evaluating key strategic
fleet and business issues for the
future of their airline.
20%
Final Exam
Assessment of students’
understanding of issues covered in
the course
On-line multiple choice exam
covering the entire lecture and
subject material presented.
50%
ASSIGNMENT ONE – INDIVIDUAL REPORT (25 marks)
Topic – Schedule planning
Background -
You are working on the launch of a new airline to be based at Kuala Lumpur in Malaysia, and
operating A320CEO aircraft with 180 seats. The airline has received traffic rights from MavCom to fly
the following frequencies.
• KUL-SIN 3 x daily (av fare $ 70 one way)
• KUL-CGK 2 x daily (av fare $120 one way)
• KUL-DPS 2 x daily (av fare $ 100 one way)
12
• KUL-BKI-HKG 2 x daily (av fare KUL-BKI $70, BKI-HKG $70, HKG-KUL $140)
• KUL-BKK 2 x daily (av fare $ 90 one way)
• KUL-HKT 1 x daily (av fare $ 60 one way)
Assessable components –
1. Draw up a spreadsheet showing a possible 1 week pattern for the A320 fleet. You must
comply with any curfews.
2. Calculate the utilisation (hours/day) for the A320 fleet – you need to determine how many
aircraft are needed and justify your reasons why.
3. Calculate the WEEKLY RPKs, ASKs, Revenue, and R/ASK if the forecast network seat factor is
80%.
4. Using the following block hour costs, what routes are profitable?
A320 (based on typical industry block hour values)
Crew $428
Fuel $2,378
Aircraft $530 (lease or ownership cost)
Distribution $433 (sales/marketing/commissions etc)
Insurance $33
Other $45
TOTAL/HR $3,847
Please make sure that you submit this assignment as a report. Do NOT submit a long narrative. It is
best to address each element of the assignment by each of the 4 tasks/questions that you are being
asked. This ensures that you do not miss anything and it is much easier to mark as well. However, it
is still an academic paper, so be sure to use the correct academic referencing wherever
necessary/relevant. The finalised report and spreadsheet is be submitted via Moodle Turn-it-in, no
later than 2359h, Sunday March 21. The Report must be done individually and requires:
• the preparation of an excel spreadsheet showing the proposed 1 week flying pattern, and
• a brief analytical report of 500 words to support the remainder of the assessment
requirements(+/- 10%).
The report must be DEVELOPED FROM YOUR OWN ANALYSIS. Evidence of critical thinking and
analysis is the key driver of good marks for this assignment.
A generic paper on airline schedule planning will NOT be adequate. You must apply your knowledge
to the specific schedule question. Papers that do not integrate theory and analysis will score poor
marks.
13
In order to complete this assignment, it is important to make use of the GREAT CIRCLE MAPPER
resource online (www.gcmap.com) . This will allow you to calculate distances between city pairs
(remember to use km’s NOT miles), as well as block times.
ASSIGNMENT TWO – GROUP WORK (20 marks)
Background –
UNSW has for some time now, been working with SIMULATE.AERO – a company which offers a
number of different simulation software products that are used to aid in the student learning
outcomes. This course will use the “AIRLINE Online” product – an interactive learning tool that will
have you run and manage an airline over the duration of the semester. The other main product that
this company offers is “AIRPORT Online”, which is used in the subject 3851 Airport Management 2.
This software will provide you with a rich interactive learning experience, within a competitive
environment. It will add enormous value to your learning outcomes for this subject and will provide
you with real life experiences in the day to day running and management of an airline. Successful
completion of this simulation, will bring together and integrate your understanding and knowledge
of all of the major subject areas of the course.
When it comes to learning business management skills, one of the best teachers is experience. The
most effective way to expose students to the pressures and practices behind business making
decisions, is to simulate the corporate environment as realistically as possible. “AIRLINE Online” is a
management simulation based around the planning, establishment and operation of an airline.
Task –
Students will be randomly allocated to a group. Subject to final numbers, the aim is to have between
5 – 6 members per group. That should give us up to 20 groups. Once finalised, each group will be
responsible to manage their airline from start up.
The scenario proposes that your airline be European based, initially as a narrow body operator,
given that the environment will be with a focus on Europe. The type of business model you choose,
together with the aircraft type and how many, what network you will build, what schedule you will
operate, what pricing you will adopt, as well as the product proposition, will be entirely your choice.
In order to operate effectively as a team, it is advisable that you allocate functional responsibilities
amongst each group member. You will need to pay regard to the competitive environment ie. what
other groups do, as that will be your competitive set and will drive your decision making from
decision to decision.
Twice every week (Monday and Thursday evenings from Week 3 onwards), you will be required to
make certain decisions and then input these into the simulation. Your decisions will need to be
entered no later than 2000h. The system administrator will batch run the simulation overnight and
the results will be available the following day. You will then need to determine the impact of the
various decisions that you as the management team of that particular airline have taken. You will
need to regularly meet to review the impact of your decisions, to be able to then make further
informed decisions regarding your airline. The weekly tutorial time between 2-4pm, has been set
aside for you to meet to undertake this review and decision making process.
Each batch run will represent a 3 month period, so with 14 decisions in total, the simulation will
cover a period of 3.5 years.
14
Twice every week (Monday and Thursday evenings), the system administrator will batch run the
simulation, which will then determine the impact of the various decisions that you as the management
team of that particular airport have taken. The simulation proper, will commence with the first decision
to be submitted in Week 3, on Monday, Feb 28. Prior to this, you will have the opportunity to
familiarise yourself with the software by entering 2 decisions (the first on Thu, Feb 17 and the second
on Mon, Feb 21). These 2 decision inputs will NOT count and will purely serve the purpose of
allowing students to familiarise themselves and to understand the capabilities of the software. These
decisions will be reset and the simulation will commence proper, on Mon Feb 28. As you progress
through the simulation, you will become better and more familiar with the software, so don’t get too
concerned at the start, as everyone will be learning at the same time.
A lot of resources regarding the software will be posted into Moodle at the commencement of T1. My
strong advice is to familiarise yourself with the material as much as possible prior to the introduction
tutorial on Thu, Feb 17. A second followup tutorial to help students and allow for further Q&A’s with
the software provider, will be held in Week 2, on Thu Feb 24.
When the simulation commences proper (Week 3 Feb 28), you will need to meet regularly to both
make and review your decisions, to be able to then make further informed decisions regarding your
airline. The weekly tutorial time between 2-4pm, has been set aside for you to meet to undertake this
review and decision-making process. Each batch run will represent a 3 month period, so with 14
decisions in total, the simulation will cover a period of 3.5 years.
Over the course of the simulation, external unforeseen events will crop up, which will force you to
consider the impact that these events will have on your airline and in turn, require you to make
decisions that you may not have otherwise expected.
The aim here is to try to simulate an environment which mirrors what airlines the world over have to
deal with in running their day to day businesses. This will also test your abilities to understand the
consequences that such unexpected events create and then in how you respond to these. With
some events, it may result in opportunities, or they may present new threats. This is all part and
parcel of the competitive landscape that airlines have to manage.
You will be expected to keep minutes of each weekly meeting. These must include details of the
following:
1. Airline Name / Group #
2. Date / Time of meeting
3. Group members present / absent
4. Decisions taken
This is critical as it will need to be submitted with your final group report (as an appendix) at the end of
the term. It will also provide evidence/support to show the contribution of each group member
throughout the entire term. Failure to provide complete details of each weekly meeting in the format
prescribed above, will result in the group losing marks. The lecturer will from time to time ask for
submission of your minutes to check on each group’s progress and to ensure that you are keeping
this up to date. Therefore, be sure to keep updated and accurate records on a weekly basis.
Assessable components –
At the end of Week 9, the simulation will end and you will need to undertake the following work
which will form the basis of the assessment for Assignment 2:
The end game, is to write a report and make a presentation on the BUSINESS PLAN FOR YOUR
AIRLINE.
15
To start with, you will need to outline your airline’s mission/vision, objectives, and strategies. These
are established when you set out the initial input to the simulation. You should also explain your
organisational structure and describe your airline’s strengths and weaknesses. Give some insights
into your airline’s brand – how did you get to decide on the name and why. It is also expected that
you undertake a competitive analysis and which airlines, if any, you see as direct competitors (or
competitive threats) and who your competitive benchmarking is set against.
You are now ready to report on a number of management issues.
Part 1 – Group Presentation (5 marks)
You will be required to prepare and make a BRIEF powerpoint presentation during Week 10 (target
date is Thursday, April 22), which should be for a maximum time of 10minutes only. The
presentation should choose the most important messages that you want to convey, which will best
and fairly show how your airline performed and what you learnt from the simulation and more
importantly, the future plans for your airline. A review of what went right, what went wrong and
how your future plans are shaped by these outcomes and the competitive environment, is your best
guide of what material to cover in the presentation. It should at the very least, cover the most
important elements from your detailed group report.
Remember, the presentation should not be detailed or be over elaborate. It will need to be clear and
succinct and support what your written report will cover in greater detail. You only have 10 minutes
and this will be strictly enforced. Presentations exceeding this time limit will be penalised.
Each group’s powerpoint presentation must be submitted via email (d.kondic@unsw.edu.com.au) to
the lecturer, no later than 2359h, Tuesday, April 20.
Part 2 – Written Group Report (Total of 12 marks)
• Forecasting and Budgeting (4 marks)
Draw up the aircraft patterns for a sample week of your airline timetable. i.e. schedule the
aircraft covering the routes you operate. Demonstrate the maintenance slots for the whole
fleet, and the city in which the maintenance takes place. You will have noted from the
simulation that curfews apply at many airports. You are only required to show a typical 1
week operation at any point of your future 5 year plan. This is meant to reinforce the
learnings from Assignment 1 so that everyone is clear as to how to present a 1 week
scheduled operating pattern.
Once the patterns are completed the next part of the task is to;
Create a revenue and expenditure budget for the airline using information from the
simulation where appropriate. Demonstrate airfares and cost elements where appropriate.
Show route profits, seat factors, overall profit and loss, and other financial indicators.
Costs will be presented on a cents per ASK basis rather than making a detailed examination
of all cost items. You should be sure to show how this develops over the 5 years of your
future business plan
• Fleet and Business Plan / Strategy (8marks)
Your airline is preparing a REALISTIC fleet plan for five years. Using decision 14 of the
simulation as your base year – project 5 future years in your fleet and business plan. The
aircraft options for consideration are B737 family, A320 family, Embraer 170-195, B787,
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A330-200/300, A350. You should also consider the option of using/retaining older aircraft –
and analyse the ownership cost trade-off. Do a fleet planning study. Make sure that you
have a logical and coherent plan for your 5 year future strategy.
The scope and format of the report is open and therefore not prescriptive. This is intentional, as I am
interested to see how each group will think about its journey throughout the simulation and then
how it will relate these learnings back to the course content and ultimately, in what each group
chooses to present in its report. However, it must be practical and realistic and remember, the
report should include and demonstrate your key learnings from the simulation.
Your report is therefore likely to cover many factors, but your best guide is to look back over the
course during the semester and determine which of the various topics covered from week to week,
will provide you with the best, most insightful and useful subject areas to include.
Perhaps the most important aspect of this assignment, is in not devoting the majority of the report
to what happened in the simulation, but rather, in taking the learnings and performance of your
airline and shaping these into a strategic plan for the future. As the management team of your
airline, what would you see as the priorities and why ? Please be sure to support your vision and
analysis with strong and compelling arguments, backed up by data wherever relevant.
I would also suggest that you present this as a report rather than as a typical long form written
academic narrative. But remember, it is still an academic paper, so be sure to reference any relevant
material you include in your report, as well as to include a bibliography.
Finally, a reminder to submit as an appendix to your group report, the minutes of your weekly group
meetings. Failure to do so will result in a loss of marks.
The finalised report is be submitted via Moodle, no later than 2359h, Tuesday April 26.
Part 3 – Group Participation (3 marks)
Group work means exactly that – all group members are expected to contribute to the overall effort
and output of the group. To ensure that all group members are involved and that the effort and
contribution is fair and equitable, peer assessment will be used. This means that each member of the
group will submit a score out of 3 (3 being equal contribution by all and 0 being little to no input) for
each member of their group (excluding yourself). This will be confidential and known only to the
lecturer, who will tabulate each input and provide a score for each person in the group in order to
evaluate each members contribution to the overall effort. Failure to do so or to submit this, will result
in a mark of 0 for the student who fails to submit a score.
Peer assessment is also critical as it will determine the mark that each student will receive for the
group report. In other words, the peer score will result in a weighted group score, which will work as
follows:
1. A peer score of 3 = 100% of the group mark
2. A peer score of 2 = 75% of the group mark
3. A peer score of 1 = 50% of the group mark
4. A peer score of 0 = 0% of the group mark.
All of this is designed to ensure that everyone is incentivised to contribute equally to the group work
from the start of the term, otherwise, you will receive a mark that ultimately reflects your contribution
over the course of the entire semester. Hence, this is in your hands from the outset – contribute
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equally and no one will be penalised or risk losing marks due to the work not being shared equitably
across the group.
When submitting the peer assessment, please be sure to use the pro-forma provided for your use. It
is available in Moodle for you to complete and submit. Be sure to complete all details – failure of
which to do so, will result in a loss of marks.
The peer assessment is be submitted via Moodle, no later than 2359h, Tuesday, April 26.
Further information
UNSW grading system: https://student.unsw.edu.au/grades
UNSW assessment policy: https://student.unsw.edu.au/assessment
5.2 Assessment criteria and standards
As this is a 3rd year subject, students are expected to bring both the learning from earlier subjects
and their skills in critical thinking and analysis to assessment tasks. Success comes from
understanding rather than memorisation.
5.3 Submission of assessment tasks
Assignments will be submitted through Moodle.
6. Academic integrity, referencing and plagiarism
Referencing is a way of acknowledging the sources of information that you use to research your
assignments. You need to provide a reference whenever you draw on someone else's words, ideas
or research. Not referencing other people's work can constitute plagiarism. The standard for this
course is Harvard: Author (year). Please do not use footnotes.
Further information about referencing styles can be located at
https://student.unsw.edu.au/referencing
Academic integrity is fundamental to success at university. Academic integrity can be defined as a
commitment to six fundamental values in academic pursuits: honesty, trust, fairness, respect,
responsibility and courage.1 At UNSW, this means that your work must be your own, and others’
ideas should be appropriately acknowledged. If you don’t follow these rules, plagiarism may be
detected in your work.
Further information about academic integrity and plagiarism can be located at:
• The Current Students site https://student.unsw.edu.au/plagiarism, and
• The ELISE training site http://subjectguides.library.unsw.edu.au/elise/presenting
The Conduct and Integrity Unit provides further resources to assist you to understand your conduct
obligations as a student: https://student.unsw.edu.au/conduct.
1 International Center for Academic Integrity, ‘The Fundamental Values of Academic Integrity’, T.
Fishman (ed), Clemson University, 2013.
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7. Readings and resources
SUGGESTED TEXTS THAT WILL BE USED AND REFERENCED THROUGHOUT THIS SUBJECT:
1. Budd, L 2017 (ed) Air Transport Management: An International Perspective
(https://www.taylorfrancis.com/books/air-transport-management-lucy-budd-stephen-
ison/e/10.4324/9781315566351)
2. Halpern, N and Graham, A (Routledge, 2018) - The Routledge Companion to Air Transport
Management (https://www.routledge.com/The-Routledge-Companion-to-Air-Transport-
Management/Halpern-Graham/p/book/9780367656140)
Relevant articles and links will also be posted within Moodle to assist students in deepening their
understanding of weekly subject matter presented.
8. Administrative matters
School Contact
Katie Wang
Undergraduate Studies
School of Aviation
Tel: + 61 2 9385 5756, Email: aviab@unsw.edu.au
Faculty Contact
Dr Chris Tisdell
Associate Dean (Education)
Tel: (02) 9385 6792, Email: cct@unsw.edu.au
or
Dr Gavin Edwards
Associate Dean (Academic Programs)
Tel: (02) 9385 4652, Email: g.edwards@unsw.edu.au
University Contact
Student Conduct and Appeals Officer (SCAO) within the Office of the Pro-Vice-Chancellor (Students)
and Registrar.
Tel: (02) 9385 8515, Email: studentcomplaints@unsw.edu.au
University Counselling and Psychological Services2
Tel: (02) 9385 5418
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9. Additional support for students
• The Current Students Gateway: https://student.unsw.edu.au/
• Academic Skills and Support: https://student.unsw.edu.au/academic-skills
• Student Wellbeing, Health and Safety: https://student.unsw.edu.au/wellbeing
• Disability Support Services: https://student.unsw.edu.au/disability-services
• UNSW IT Service Centre: https://www.it.unsw.edu.au/students/index.html
