Samao Airline has introducted a unique scheme that says that the air fare is directly propotional to the weight of the passenger. Through this scheme people with lean body structure shall pay low airfare, on the other hand people with obese bosy structure shall pay more fare.

1. Presentation Outline
Presenter Haris Naved Ahmed
Subject Managerial Communication
Task Individual Presentation
Date June 21, 2014
Situation
The new Chief Executive Officer of Samoa Air has asked to reduce the operations cost in
the airline system. Chief Operating Officer comes up with an innovative idea through
which the cost will be reduced and profit will be increased
My Role Chief Operating Officer
Audience Role Chief Executive Officer

2. SAMOA AIR
PAY WHAT YOU WEIGH SYSTEM

3. What is SAMOA?
An Island located at the
center of Pacific Ocean
Famous for tourism, food, cultural
heritage and natural wonders

4. Samoa Air Route
Samoa Air flies to 10 destinations
Popular Destinations
Samao
American Samao
Niue
North Cook Islands
French Polynesia
It operates scheduled flights between
the domestic islands as well as to
American Samoa
Samoa Air Fleet
Aircraft Total Passengers Capacity
Britten-Norman Islander 10 50

5. Current Operational Cost
0
0.5
1
1.5
1990 2000 2010 2014
FuelCost(US$/Ltr)
Years
Cost of Jet Fuel (US$/Ltr)
Cost of fuel increased to 400% in 30 years
0
20
40
60
1990 2000 2010 2014
%ProfittoOperationalCost)
Years
Samoa Air- Profit to Operational Cost
Profitability decreased from 50% to 20%

6. Current Fare
Current Fare
No. of Passengers Distance between two destinations Total Air Ticket Cost
1 passenger 500 km US$ 120
50 passengers 500 km US$ 6,000
A flight carrying 50 passengers will generate US$ 6,000 revenue
A passenger with 60 kg weight is charged US$ 120
A passenger with 100 kg weight is charged US$ 120

7. What is the new system?
4 kg apple = US$ 10
'Pay only for what you weigh'!
This is the fairest system for payment
of carriage of anything by air
2 kg apple = US$ 10

8. How does the pay by weigh system works?
Ticket Cost = Total weight x Sector fare per kg
= 100 kg x US$ 1.3/kg
70 kg 30 kg 100 kg
US$ 130

9. This is how the online form will appear

10. What do we do ?
standard seats special seats
Other Airlines
100 kg
US$ 120
60 kg
US$ 120
100 kg
US$ 130
60 kg
US$ 78
2
1
Samoa Air

11. New Fare Calculation Method
Results of survey conducted by Samao Air : Weight Distribution in a aircraft of 50 passengers
No. of
Passengers
Average
Passenger
Weight
Average
Baggage
Weight
Total Weight Air Fare Total Air Fare
35 90 kg 25 kg 115 kg US $ 150 US $ 5,250
12 75 kg 25 kg 100 kg US $ 130 US $ 1,560
3 45 kg 25 kg 70 kg US $ 90 US S 270
Total US $ 7,080
A flight carrying 50 passengers will generate US$ 7,080 revenue
Cost of Ticket = US $ 1.3/kg

12. Benefits of New System
Existing System
Passenger Weight Air Fare
60 kg US $ 120
100 kg US $ 120
New System
Passenger Weight Air Fare
60 kg US $ 78
100 kg US $ 130
• Pay what you weigh system will increase the total revenue by 18%
• Attract more customers because they will get special seats
• Passenger will only pay for the weight they carry

13. Our partnership with World Heath Organization
Samoa is amongst the top 10 countries for obesity levels
Samoa Air has also signed a Memorandum of Understanding with the World Health
Organization (WHO) which states that the new airline's new payment policy will also help
promote health and obesity awareness
Once the new system will be launched SAMOA AIR and WHO will sign a partnership against
obesity agreement

14. Passengers questions to Samoa Air
Question 1
Hey I lost weight since signing up... (Or my bag fell off
the bus!)
We always reserve the right to either compensate or not… Your
lost weight will be reimbursed
Question 2
I just bought a diving kit on the way to the airport…its
only 30 kg
We may be able to put it on the flight… but it will cost its
weight

15. Passengers questions to Samoa Air
Question 3
One of the kids got crook and is staying home…
Call our 24/7 line otherwise it might be a done deal… only
refundable 48 hours before travel
Question 4
I had a great time and my return weight is 5 kg over
You might have to pay for that burger you had…..we don’t
charge for extra weight up to 3kg on total weight
Question 5
I had a lousy time and I lost 10 kg weight
Sorry…can we suggest a nice seat by the window

16. Thank you
Your questions on the new system will be appreciated