Marketing Case Study: Turbo Air

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Turbo Air is a brand new premium airline. The home base is in Paris Orly Airport (ORY) in France. The reason of choosing this base is the location of the airport is in the center of Europe. It is very convenient to travel to the other countries in Europe. It is the top ten airports with the most departures. Although the demand of this airport is not bigger than the nearest airport, Paris De Gaulle Airport, its handling charges and parking fee of the aircraft are cheaper. It is easier to make profit. It opens three domestic flights and one international flight.

As our airline operates domestic flight, there will be flights to Milan, Brussels, Frankfurt, Moscow, Helsinki, Amsterdam, Berlin, Munich, Stockholm, Lisbon, Istanbul, London Gatwick,
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It is because the routes that I chose are exclusive by our airline. We can set our air ticket price a little bit higher than the published fares. The air ticket price of First Class is higher than the published fares 1.3 times. The air ticket price of Business Class is higher than the published fares 1.2 times. The air ticket price of Economy Class (booking Class Y) is higher than the published fares 1.1 times. The air ticket price of Economy Class (booking Class Q) is the same of the published fares. I decided to have ninety percent of Economy Class is booking Class Y and ten percent of Economy Class is booking Class Q. It can have the maximum …show more content…
In fuel cost, I decided to use the aircraft that is low fuel capacity. In staffing, I decided to pay them union requested salaries and only employed the union suggested number of staff. In maintenance, I decided to apply less A check as possible. In airport service charge, I decided to fly to the airports that have fewer passengers handling charges and parking fee.

Our airline can stay competitive in the current market by fly to the airports that exclusive by our airline. Although the demand of these airports may not higher than the most popular airports, there is only one airline to fly so I can keep the passenger market share in six percent or above.

With the given initial capital of USD 100,000,000, most of the money will be allocated in fuel cost. It is about thirty seven percent of total capital. There is large amount of funds is allocated in advertising. It is about twenty one percent of total capital. The funds that allocated in staff salary are about thirteen percent of total capital. Maintenance cost and airport service charge are both allocated about ten percent of total capital. Aircraft adjustment is allocated about three percent of total capital. The other cost, like insurances or rental fee, is allocated about six percent of total

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