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Optimized ‘Size and Shape’ of the Airline and Financial Plan

Optimized ‘Size and Shape’ of the Airline and Financial Plan

  • The functional organizational structure is rigid by definition. It has some drawbacks that affect not only Airlines, but the airlines that use this structure.
  • First, strong centralized control over operations reduces the flexibility of individual departments, including local managers and supervisors (de Oliveira et al., 12)
  • The company should use the same structure that it used when being a small, local airline. It can quickly take new initiatives and respond to changes in the industry (Nenem et al. 22).
  • The advantage of using functional organizational structures is the ability to ensure that the company functions as a whole.
  • The airline businesses can have team-based cultures, which they often do.
  • The airline should use both a hierarchical and a functional structure in its business model (Taneja 10).
  • A look at the structure of the operations, such as marketing, sales and customer service, shows that while they have fewer jobs than smaller regional carriers, the divisions are very similar.
  • Corporate structures of the airline should facilitate the sharing of resources between airlines, including human resources.
  • As a structural system, the airline should have a rigid hierarchy that takes strategic management concerns into account (Lange et al,. 15).
  • Examining the organizational structure of an airline gives the understanding of how management is organized from the top down in order to achieve a balance with maximum thrust and minimum resistance (Mariani et al., 20).
  • The airline’s organizational chart show that it uses functional organizational structures to arrange management that resembles the coordination of different departments of the company.

Financial Plan: Financial Assumptions

Financial Plan: Financial Assumptions

Aircraft Cost on a Purchase Basis

Aircraft Cost on a Purchase Basis

Pro Forma Cash Flow

Pro Forma Cash Flow

Works Cited

  • De Oliveira, et al. Does one model fit them all? A network design analysis of airline business model adaptation in face of competition. 2019.
  • Lange, Anne, and Tobias Bier. “Airline business models and their network structures.” Logistics Research vol. 12, 2019, pp. 1-14.
  • Mariani, Giovanna, Davide Morelli, and Leonardo Bartoloni. “Managing uncertainty in the start-up environment. Is a business plan an incentive or a limitation?.” Management Control, 2019.
  • Nenem, Sukru, Anne Graham, and Nigel Dennis. “Airline schedule and network competitiveness: A consumer-centric approach for business travel.” Annals of Tourism Research, vol. 80, 2020.
  • Taneja, Nawal K. “Transforming Airlines: A Flight Plan for Navigating Structural Changes.” 2020.
  • Yu, Jin. “Investigation of IFRS16 Effect on the Airlines.” Journal of Finance and Accounting vol. 7, no. 5, 2019, p. 132.

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StudyCorgi. "Optimized ‘Size and Shape’ of the Airline and Financial Plan." March 15, 2022. https://studycorgi.com/optimized-size-and-shape-of-the-airline-and-financial-plan/.

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StudyCorgi. 2022. "Optimized ‘Size and Shape’ of the Airline and Financial Plan." March 15, 2022. https://studycorgi.com/optimized-size-and-shape-of-the-airline-and-financial-plan/.

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StudyCorgi. (2022) 'Optimized ‘Size and Shape’ of the Airline and Financial Plan'. 15 March.

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