Kangaroo Route Case Study

Improved Essays
Young and I were responsible for the Asian market. In terms of the Kangaroo route, we connected the flights from Singapore to Europe, Australia, and other Asian regions. First and for most, we had set our home base in Singapore; simply because Singapore airport is the second busiest international passenger airport. In addition, the geographic location is in the middle of Indian ocean and South China sea. In other word, it is closer to Australia. Hence, the routes we in charged included Singapore Changi to Sydney Kingsford, Singapore Changi to Seoul Gimpo, Singapore Changi to Jakarta Soekarno, and Singapore Changi to Riyadh K. Khaled. Among all four of these different routes, the average of passenger demand was approximately 20,000, which meant that these routes could be very profitable and beneficial to our airline’s operations. The route from Singapore to Riyadh was one of our most profitable one. Although the passenger demand was merely 12,190, which was not as high as Singapore to Istanbul; but it brought $65,293,270 net profit to our company. It had gained the highest profit of our Asian flight routes. The second highest was the route from Singapore to Seoul Gimpo, which earned us $36,579,376.98. According to our analysis, we believed that it was because flying to the destination of Riyadh …show more content…
From the data analysis, we could conclude that the market was more stable that the others. It was able to bring an average of $12,000,000 net profit to our company. However, the second batch was the most profitable compared to the other three batches. The net profit of the third batch was $11,118,018.62, which meant that we had lost $2,045,732 dollars. Later on, during the last batch, we had earned $1,179,589.12 dollars back, which was $12,297,607.74 dollars in total. Since we were the only company who had operated in this region, our market share was up to

Related Documents

  • Improved Essays

    Balance Sheet Observation Pinnacle Entertainment INC. (PNK) a) What is the trend, in each company, in total revenues over the three years? Growth has been observed in revenue. It is increased from (2012) 1,002,836 to (2014) 2,210,543 which is 120% growth as compare to base year. Revenue is very sensitive for the survival of company but since growth rate is very high, it is sign that company will grow further in future. PNK need to maintain it through the period, any negative in growth can badly affect the reputation of PNK.…

    • 464 Words
    • 2 Pages
    Improved Essays
  • Superior Essays

    Some of the main contributors to the growth of the airline industry include world trade and tourism, international investment, and economic growth. A huge portion of the profits come from world trade and economic growth (Kroo, 1999). According to a report in 1991, there was a significant drop in the rates of airfare. After the Airline Deregulation Act of 1978, there were financial challenges and deficits that were observed because of the large growth rate experienced in the 1980s (Kroo,…

    • 1083 Words
    • 5 Pages
    Superior Essays
  • Great Essays

    Alexandra Corredor P. MGM 2301 Prof. Gwendolyn Wilson Assignment #1: Chapter 3 Understanding the Chapter: What Do I know? 1. How would you explain the difference between internal and external stakeholders? A.- Internal and external stakeholders are two groups of entities that follow a path to achieve their own objective, being that, the main differences between them.…

    • 810 Words
    • 4 Pages
    Great Essays
  • Improved Essays

    During the Root Beer Simulation, I was assigned the role of the Retailer which means I was in the center of the supply chain. My job was to essentially guess what the customers would need four weeks into the future and order accordingly. Normally, this would be fine, however, in the simulation we did not know the other members of our chain or have any sort of prediction model. Due to the unknown of what the factory, the distributer, and the wholesaler would do this became a quite difficult process that involved a lot of backlog which caused for an increase in expenses for my part of the supply chain.…

    • 505 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Capsim Executive Summary

    • 945 Words
    • 4 Pages

    In this way, the company would be able to earn consistent profits and save costs. Automation for the product that remained consistently profitable throughout our entire run. The other products we initially meant to be improved in performance and size, but the decisions made in moving these products on the perception map came either too late or not spaced out enough. Because of this, while we were scrambling, our competitors were able to take advantage and sell more. This combined with our intention to keep marketing low initially caused great difficulty for us.…

    • 945 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    BSG Lessons Learned How did the key theories and concepts in the course relate to the simulation? The Business Strategy Game (BSG) was the practice of strategic management that offers virtual executive experience. The assigned team could analyze the market, set the direction, and make strategy for company’s growth in BSG.…

    • 1159 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    The company currently has six products available in five assorted markets. Andrews has found the balance of maintaining top sales that…

    • 716 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    Tough Situation Analysis

    • 1346 Words
    • 6 Pages

    RUNNING HEAD: TOUGH SITUATION AT MACREC, INC. 1 TOUGH SITUATION AT MACREC, INC. 7 Tough Situation at MacRec, Inc. Refise Beaubrun Palm Beach State College Tough Situation at MacRec, Inc. Daily, everyone is faced with a tough situation. It can be work, family life, or even figuring out how to start a paper.…

    • 1346 Words
    • 6 Pages
    Superior Essays
  • Brilliant Essays

    Vol. 9, No. 3, May 2009, pp. 135–139 issn 1532-0545 09 0903 0135 informs ® Additional information, including supplemental material and rights and permission policies, is available at http://ite.pubs.informs.org.…

    • 3177 Words
    • 13 Pages
    Brilliant Essays
  • Improved Essays

    Analysis of “A Tale of Two Airlines” “A Tale of Two Airlines” is a short article written by Christopher Elliot. Elliot, a well-known author and journalist, writes for National Geographic Traveler, MSNBC, Tribune Media Services and the Washington Post and is an experienced traveler. “A Tale of Two Airlines” was published in National Geographic Traveler in the December 2012/ January 2013 issue, which is significant because these months are very busy months in terms of travel. People fly regularly during these months because of the holidays. In this article, Elliot compares and contrasts two major airlines: Southwest Airlines and Spirit Airlines.…

    • 791 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Phionia’s Finicky Feline Gourmet Cat Dinners After developing a gourmet cat food, eaten by the most finicky felines, Phionia Phelps has an opportunity of a life time. Her wealthy acquaintance wishes to invest $50,000 into her business in exchange for selling her products on her website. In addition to already selling to her close acquaintances, Phelps has an opportunity to grow her thriving business, but is it worth it? Careful analysis of her current sales and expenses is necessary to see if the investment is worth making, and although she currently has sales and makes a profit of $70.00 per case, it is not certain if it is enough to continue and make a profit.…

    • 1413 Words
    • 6 Pages
    Improved Essays
  • Superior Essays

    Lever Case Study Solution

    • 1344 Words
    • 6 Pages

    Catherine McCauley Professor Kim Case Analysis 2 November 25, 2017 Lever, Ltd. Sung Wu, the project manager for guard recently got transferred to Lever, Ltd, the Canadian sector of Lever Group, Inc. He is hoping to create a remarkable impression so that he will be transferred to the London office of Lever. For Sung to be transferred to London, he is working on creating and getting approval for the marketing plan for the following year. The plan will include, reviews from the brands performance from the previous year, marketing strategies for the following year, and the brand’s sales objective and requirements for advertising and promotion budget. Sung created tables that list the overdevelopment and underdevelopment of the deodorant bar, specifically…

    • 1344 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    Its marginal cost curve is MC = $100 per day. Assume that the firm faces no fixed cost. a. How much will the firm produce? b. How much will it charge? c. Can you determine its profit per day?…

    • 719 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Firms use the many price discrimination techniques one of them is called 2-part tariff which capture all or most of the consumer surplus, in a monopolistic market. Consumer surplus is the difference between the consumer willingness to pay for a good, compared to the total amount the consumer actually pay. Furthermore, firms have to adjust their 2-part tariff pricing according to the type of consumer demand present in the market. A 2-part tariff is a second-degree price discrimination technique which consist of charging consumers with 2 fees, an entry fee for the right to purchase the product, a usage fee which is price per unit consumed by the consumer.…

    • 1063 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    Air Asia positioned itself as a moderate standard with lower rates. As the company offers lower rates to their customers. Their taglines “Now everyone can fly” explained that Air Asia is offering the lowest rate among the airline industry to everyone. Hence, everyone includes the rich and poor are able fly with Air Asia. Lastly, Air Asia is trying to meet their customer’s expectations by improving their services and facilities in the…

    • 904 Words
    • 4 Pages
    Decent Essays