Aviation Case Study 2023 ิั ิั by CATC (Thailand)

AVIATION CASE STUDY PRESENTATION 2/2023

โครงการนาเสนอ Aviation Case Study
วัตถุประสงค์
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• นักศึกษาปี 1 วิชา Air Transport System
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AIR TRANSPORT SYSTEM CASE STUDY PRESENTATIONS 2023
TOPIC CASE 1: AIRLINE-WITHIN-AIRLINE BUSINESS MODEL AND STRATEGY: CASE STUDY OF QANTAS GROUP
The article, titled "Airline-within-Airline Business Model and Strategy: Case Study of Qantas Group,"
examines the dual-brand strategy of Qantas Airways and its subsidiary, Jetstar Airways. The study
explores how the Qantas Group manages these two airlines with distinct business models - Qantas as a
full-service carrier and Jetstar as a low-cost carrier. The research uses SWOT analysis, Business Model
Canvas, and Game theory to analyze the strategic positioning and operational coordination between the
two airlines. The findings highlight the effectiveness of the Airline-within-Airline (AwA) model in
maintaining brand competitiveness and market segmentation.
Keywords: business model, ailrine, ailrine-within-airline, strategy, game theory, Qantas Airways, Jetstar
Airways
TOPIC CASE 2: A COMBINED MULTI-CRITERIA DECISION-MAKING APPROACH FOR IMPROVEMENT OF
AIRLINES’ GROUND OPERATIONS PERFORMANCE: A CASE STUDY FROM TÜRKIYE
The article "A Combined Multi-Criteria Decision-Making Approach for Improvement of Airlines’ Ground
Operations Performance: A Case Study from Türkiye" by Atik Kulakli and Yıldız Şahin utilizes multi-criteria
decision making (MCDM) techniques to enhance ground operational performance of low-cost carriers in
Turkey. It employs fuzzy Analytic Hierarchy Process (AHP) and fuzzy Technique for Order of Preference by
Similarity to Ideal Solution (TOPSIS) methodologies. The study evaluates three airline companies based on
five main criteria and eighteen sub-criteria, aiming to provide a comprehensive understanding of

TOPIC CASE 3: ANALYSIS ON THE PROFIT RECOVERY OF CHINA'S BUDGET AIRLINES AFTER THE EPIDEMIC-- A
CASE STUDY OF SPRING AIRLINES
The article titled "Analysis on the Profit Recovery of China's Budget Airlines - A Case Study of Spring
Airlines" examines the impact of the COVID-19 epidemic on the profitability of Spring Airlines, a leading
low-cost carrier in China. It focuses on the airline's operational changes, including fluctuations in
passenger numbers, operating costs, and government policy support. The study uses data from Spring
Airlines' financial statements to analyze trends in revenue, profit, and cash flow, highlighting the airline's
resilience and strategic responses to the challenges posed by the pandemic.
Keywords: Spring Airlines, budget airlines, epidemic
TOPIC CASE 4: ASSESSMENT OF FACTORS DETERMINING AIRLINE CONSUMER LOYALTY: CASE STUDY IN
LITHUANIA
The article titled "Assessment of Factors Determining Airline Consumer Loyalty: Case Study in Lithuania"
explores the factors influencing airline consumer loyalty in Lithuania. The study, conducted by Nijolė
Batarliene and Neringa Slavinskaite, focuses on passengers of both prestige (business) and economy
classes. It identifies key factors such as service quality, price, and airline reliability that significantly
affect passenger loyalty. The research highlights the differing priorities between business and economy
class passengers, with business class passengers valuing service quality and privacy more, while economy
class passengers focus on price and basic service quality perceptions. The study's findings emphasize the
importance of tailoring services to different passenger segments to enhance loyalty.
Keywords: aviation, loyalty, airline consumers, satisfaction, factors

TOPIC CASE 5: CASH MANAGEMENT OF MULTINATIONAL AIRLINES: A CASE STUDY ON A TURKISH AIRLINE
The article "Cash Management of Multinational Airlines: A Case Study on A Turkish Airline" by Yaşar Köse
and Ceyda Aktan focuses on the cash management strategies of a leading Turkish airline. It examines the
airline's financial performance in 2020, emphasizing the importance of efficient cash management for
multinational airlines. The study employs various financial models and analyses to understand the
airline's cash flow and management strategies, particularly in the context of the COVID-19 pandemic's
impact on the aviation industry.
Keywords: Cash Management ,Multinational Companies Airlines ,Airline Finance ,Netting Systems Cash
Flows
TOPIC CASE 6: CUSTOMER RESPONSES TO ADVERTISING SOCIAL MEDIA CHOICES WHEN CHOOSING AN
AIRLINE: A CASE STUDY OF LOW-COST AIRLINES IN THAILAND
The article "Customer Responses to Advertising Social Media Choices When Choosing an Airline: A Case
Study of Low-Cost Airlines in Thailand" examines how social media advertising influences airline customer
choices in Thailand. It highlights the significant role of social media platforms, particularly Facebook,
Instagram, and Line application, in shaping customer preferences and decisions. The study reveals that
online advertising on these platforms is more impactful compared to offline media, indicating a shift
towards digital channels in customer engagement and marketing strategies in the airline industry.
Keywords: customer response , social media , low-cost airline , advertising

TOPIC CASE 7: ENHANCING CUSTOMER SATISFACTION IN THE AIRLINE INDUSTRY: A CASE STUDY OF DELTA
AIRLINES
The article "Enhancing Customer Satisfaction in the Airline Industry: A Case Study of Delta Airlines" by
Xinhe Ma focuses on improving customer satisfaction in the airline industry using Delta Airlines as a case
study. It employs sentiment analysis of customer reviews and a comprehensive SWOT analysis. The study
provides targeted suggestions for Delta Airlines, including leveraging technology to mitigate delays,
establishing uniform service standards, broadening global networks, committing to sustainability, and
responding quickly to policy changes. The research acknowledges its limitations, such as reliance on a
single data platform and the subjective nature of sentiment analysis.
Keywords: customer satisfaction, airline industry, Delta Airlines
TOPIC CASE 8: FACTORS AFFECTING THE INTERNATIONAL FLIGHT DELAYS AND THEIR IMPACT ON AIRLINE
OPERATION AND MANAGEMENT AND PASSENGER COMPENSATIONS FEES IN AIR TRANSPORT INDUSTRY: CASE
STUDY OF A SELECTED AIRLINES IN EUROPE
The article "Factors Affecting the International Flight Delays and Their Impact on Airline Operation and
Management and Passenger Compensations Fees in Air Transport Industry: Case Study of a Selected
Airlines in Europe" by Martina Zámková and colleagues analyzes the causes of flight delays for a European
airline. Using data from 2013-2019, the study employs multidimensional statistical methods to identify
the reasons for delays and their impact. It observes trends in delays over the period and investigates the
correlation between aircraft type, flight characteristics, and delay occurrences. The findings are crucial
for enhancing airline operational strategies and improving passenger satisfaction.
Keywords: airline operation and management, management and strategy, marketing and quality of the

TOPIC CASE 9: FACTORS AFFECTING THE INTERNATIONAL FLIGHT DELAYS AND THEIR IMPACT ON AIRLINE
OPERATION AND MANAGEMENT AND PASSENGER COMPENSATIONS FEES IN AIR TRANSPORT INDUSTRY: CASE
STUDY OF A SELECTED AIRLINES IN EUROPE
The article "Investigating the Impact of Corporate Digital Communication on Brand Reputation and
Consumer Engagement in the Airline Industry in Morocco: A Case Study" examines how digital corporate
communication affects brand reputation and consumer engagement in Morocco's airline industry. It
employs qualitative research methods, including semi-structured interviews with professionals in
communication and digital marketing within Moroccan airlines. The study aims to provide in-depth
insights into the relationship between digital communication, brand reputation, and consumer
engagement, offering practical implications for Moroccan airlines to optimize their digital strategies.
Keywords: Corporate Digital Communication, Brand Reputation, Consumer Engagement, Moroccan Airline
Industry.
TOPIC CASE 10: ESTIMATIONS VIABILITY OF LCCS BUSINESS MODEL IN KOREA
The article "Estimations Viability of LCCs Business Model in Korea" examines the viability of the Low-Cost
Carriers (LCCs) business model in Korea's airline industry. It categorizes Korean LCCs into three types:
independent, subsidized by existing airlines, and supported by conglomerates and local governments.
The study focuses on their financial performance and market impact during 2009-2013, revealing insights
into their operational efficiency, market expansion, and challenges, especially in the context of
increasing competition and market liberalization.
Keywords: Low-cost carriers ,Airlines-within-airlines ,Data envelopment analysis ,Korean air carriers

TOPIC CASE 11: JUSTICE BASED RECOVERY EXPECTATIONS OF AIRLINE PASSENGERS AFTER SERVICE
FAILURE - A CONCEPTUAL STUDY - A CASE STUDY OF GOA - INDIA
The article "Justice Based Recovery Expectations of Airline Passengers After Service Failure - A
Conceptual Study - A Case Study of Goa - India" investigates how passengers of airlines perceive
service failures and their expectations for recovery. The study, conducted through a three-stage
methodology, explores the relationships between the severity and controllability of service failures
and the types of justice (procedural, interactional, and distributive) expected by passengers. The
research findings highlight the different justice expectations based on various failure scenarios,
providing insights for effective service recovery strategies in the airline industry.
Keywords: IFRS, Cost of Equity, Firm Value, Service Failure, Service Recovery, Severity, Controllability,
Complaints, Justice Expectations
TOPIC CASE 12: STUDY ON THE FINANCIAL RISKS OF LISTED AIRLINES-BASED ON AIR CHINA CASE STUDY
The article "Study on the Financial Risks of Listed Airlines-Based on Air China Case Study" by Yufan
Chang examines the financial risks faced by listed airlines, focusing on Air China. It analyzes the
impact of the COVID-19 pandemic on the aviation industry, highlighting the severe effects such as
reduced passenger numbers, increased financial strain, and widespread industry downturn. The paper
emphasizes the need for effective financial risk management in the airline industry, particularly in
the context of external shocks like global health crises.
Keywords: Airlines, financial risk, financial statements, Air China

TOPIC CASE 13: THE CASE OF SOUTH KOREAN AIRLINES-WITHIN-AIRLINES MODEL: HELPING FULL-
SERVICE CARRIERS CHALLENGE LOW-COST CARRIERS
The article "The Case of South Korean Airlines-Within-Airlines Model: Helping Full-Service Carriers
Challenge Low-Cost Carriers" investigates the airlines-within-airlines (AwA) model in South Korea. It
focuses on how full-service carriers (FSCs) have adopted the AwA model to compete with independent
low-cost carriers (ILCCs). The study evaluates the performance and market dynamics of this model,
considering the competition between FSC-owned AwAs and ILCCs. The research provides insights into
the strategies and outcomes of implementing the AwA model in a competitive aviation market.
Keywords: airlines-within-airlines; Lotka–Volterra model; competition dynamics
TOPIC CASE 14: LUFTHANSA AIRLINES. THE MICROECONOMIC AND MACROECONOMIC ENVIRONMENT OF
THE COMPANY AND THE INDUSTRY IN 2020 AND ITS READINESS AGAINST CRISIS
The article "Lufthansa Airlines: The Microeconomic and Macroeconomic Environment of the Company
and the Industry in 2020 and Its Readiness Against Crisis" analyzes Lufthansa's performance from 2006
to 2019 and its strategic readiness against crises. It discusses the airline industry's oligopolistic
nature, Lufthansa's market competition, cost structure, and the macroeconomic impact of oil prices.
The study highlights Lufthansa's challenges and strategic approaches in the face of economic shocks,
focusing on its competitive positioning and financial vulnerabilities within the global aviation market.
Keywords: Macroeconomics · Lufthansa · Airlines · Economics · Airlines oligopoly · Airlines
competition · Economic shocks · Cost vulnerability

TOPIC CASE 15: DO CUSTOMER LOYALTY PROGRAMS REALLY WORK IN AIRLINES BUSINESS? —A STUDY ON
AIR BERLIN
The article "Do Customer Loyalty Programs Really Work in Airlines Business?—A Study on Air Berlin"
explores the effectiveness of loyalty programs in retaining customers and enhancing airline business,
using Air Berlin's "Topbonus" program as a case study. It discusses the design and impact of loyalty
programs on customer retention and engagement, analyzing Air Berlin's strategy and performance in
the context of the competitive airline industry. The study provides insights into the strengths and
limitations of loyalty programs in influencing customer behavior and airline profitability.
Keywords: Loyalty Program, Customer Relationship Management, Relationship Marketing, Rewards
Program, Loyalty in Airlines Industry, Customer Satisfaction
TOPIC CASE 16: THE EFFECT OF AIRLINE SERVICE QUALITY ON PASSENGERS’ BEHAVIORAL INTENTIONS
USING SERVQUAL SCORES: A TAIWAN CASE STUDY
The article titled "The Effect of Airline Service Quality on Passengers’ Behavioural Intentions Using
SERVQUAL Scores: A TAIWAN Case Study" by Yu-Kai Huang investigates the decision-making process of
air passengers in Taiwan. It applies structural equation modeling (SEM) and Importance-Performance
Analysis (IPA) to assess the impact of airline service quality on passenger satisfaction, perceived
sacrifice, service value, and behavioral intentions. The study finds that service value significantly
influences behavioral intentions, with responsiveness being a key aspect of airline service quality. The
research offers practical implications for improving airline services and enhancing passenger
satisfaction.

TOPIC CASE 17: BUSINESS PROCESS MANAGEMENT AND SOCIAL NETWORKS: A CASE STUDY IN AN AIRLINE
ORGANIZATION
The article "Business Process Management and Social Networks: A Case Study in an Airline Organization"
by Ana Raquel Vaz Vieira and Jurij Jaklič explores the integration of Business Process Management (BPM)
with social networks in a Portuguese airline. It examines how social BPM can enhance organizational
performance, reduce costs, and provide a competitive advantage. The study demonstrates how the
airline successfully incorporated social networks into their business processes, leading to improved
results and organizational culture changes..
Keywords: Business Process Management, Social Networks, Social BPM
TOPIC CASE 18: AN ANALYSIS OF THE IMPACTS OF COVID-19 PANDEMIC TO AIRLINE BUSINESS CASE STUDY:
PT. GARUDA INDONESIA
The article "An Analysis of the Impacts of COVID-19 Pandemic to Airline Business: Case Study of PT.
Garuda Indonesia" examines the profound effects of the COVID-19 pandemic on the Indonesian aviation
industry, particularly on Garuda Indonesia. It covers the dramatic reduction in passenger numbers, flight
frequencies, flight cancellations, and overall operations. The study employs qualitative research
methods, including interviews and analysis of both primary and secondary data, to explore how Garuda
Indonesia responded to and managed these impacts. The research offers insights into the airline's
strategies to adapt to the pandemic's challenges.
Keywords: impact, pandemic, covid-19, airline business, garuda indonesia

TOPIC CASE 19: IMPACT OF ENTRY RESTRICTION POLICIES ON INTERNATIONAL AIR TRANSPORT
CONNECTIVITY DURING COVID-19 PANDEMIC
The article "Impact of Entry Restriction Policies on International Air Transport Connectivity During
COVID-19 Pandemic" examines the effect of two main entry restriction policies - direct flight
suspension and complete entry suspension - on international air connectivity. It uses China as a case
study to evaluate the influence of these policies on the international air transport network. The study
utilizes a novel weighted international connectivity index and analyzes the hierarchical structure of
the network to understand the impacts of these policies. The research contributes to a deeper
understanding of air transport network performance during emergencies like the COVID-19 pandemic.
Keywords: Air transport network, International connectivity ,Disruption, Robustness ,COVID-19 ,Travel
bubble
(........อาจารย์..ดร. ณัฐกรานต์ ไชยหาวงศ์...............)
อาจารย์ที่ปรึกษาหลัก/ประธานหลักสูตร

QANTAS
GROUP’S
Qantas Group's Airline-within-Airline, known as "Jetstar," is a
crucial strategy enabling the company to diversify its marketing
approach. By offering low-cost services and targeting customers
seeking affordable prices, it addresses the importance of
competitiveness in the travel industry, where flexibility and value
are paramount. The presence of an Airline-within-Airline helps
respond to a wide range of customer needs and strengthens the
customer base for both brands

QANTAS GROUP
OVERVIEW
Qantas Group is a leading airline with a
longstanding history, high-quality standards,
innovation investments, customer-centric
services, and a trusted market image. These
features help build trust and establish Qantas
Group as widely recognized and accepted in
the aviation market

WHY USE
AIRLINE-WITHIN-AIRLINE ?
Qantas Group has opted for the Airline-within-Airline business
model to enhance flexibility in responding to the diverse aviation
market. This allows effective price competition, access to the
tourism market, and experimentation with business model
innovations without jeopardizing its core brand. The introduction
of Jetstar within the Qantas Group structure contributes to
creating diversity and flexibility, enabling efficient adaptation to
target markets

ACHIEVEMENTS
OF QANTAS
Qantas Airways and JetStar as an AwA business
model encompass cost savings, economic
efficiencies, lower fares, competition promotion,
enhanced services, and increased tourism

CHALLENGES
OF QANTAS
For Australian domestic flights, Qantas-Jetstar
dominate the market while international remains
challenging due to high competitive.

Group Members
1. 6612100080 Phumes Phumisombut
2. 6612100090 Kittitat Veeradecha
3. 6612100150 Nattapat Wittayakorn
4. 6612100200 Napat Chatjaturapat
5. 6612100440 Thanakhon Chinsirigul
6. 6612100580 Wamin Jintana
7. 6612100760 Pornphawit Samrueangsri
8. 6612100800 Nuttawat Supharatraveekul
9. 6612101000 Visarut Chaiprasian
10. 6612101150 Busadee Anjukchun
11. 6612102330 Chananon Swangkla
12. 6612102740 Tichanan Purente
13. 6612103690 Phontida Surak
14. 6612103740 Sukkawin Tapayeensut
15. 6612100110 Yodsakon Siriphan

A Combined Multi-Criteria Decision Making
Approach for Improvement of Airlines’
Ground Operations Performance:
A Case Study from Türkiye
A Combined Multi-Criteria Decision Making
Approach for Improvement of Airlines’
Ground Operations Performance:
A Case Study from Türkiye
Presented by Job Jab Group

Introduction
Introduction
Airlines, in the competitive global market, use
Multi-Criteria Decision-Making (MCDM)
methods to optimize operational performance
by considering factors

Whatisitfor?
Whatisitfor?
Developing effective
methods for
improvement is time-
consuming due to
complex factors.
Howtostudy?
Howtostudy?
Goal to result

5 people that we think has main fact
about this topic
Gudiel Pineda and colleagues,suggested
improving airline performance by
combining decision-making methods
with data mining techniques.
Bakir et al. applied MCDM (PIPRECIA and
MAIRCA) to evaluate the operational
performance of 11 leading full-service
airline carriers in emerging markets,
considering various criteria.
Wang et al. (2011) used DEMATEL to
assess customer perceptions of airline
service quality

Doziccontributedtotheairlinesectorwithadetailedliteraturereview.
Themaindimensionsandrelatedcriteriahighlightedinclude:
Doziccontributedtotheairlinesectorwithadetailedliteraturereview.
Themaindimensionsandrelatedcriteriahighlightedinclude:
For Airlines :
* Service quality
* Partner selection
* Fleet management
* Competitiveness
* Financial performance
* Safety
* Responsibility
* Operational factors
For Airports :
* Performance
* Service quality
* Location
* Safety
* Other factors
Additional Dimensions :
* Maintenance
* Military issues
* Air cargo
* Mode of transport
* Web-based marketing
* Aircraft
* Helicopter
* Sustainability

MahtaniandGargconductedananalysisoffactorsinfluencingairline
financialperformanceusingfuzzyAnalyticHierarchyProcess(AHP).
MahtaniandGargconductedananalysisoffactorsinfluencingairline
financialperformanceusingfuzzyAnalyticHierarchyProcess(AHP).
Fuzzy AHP
•cost,
•quality,
•rejection percentage,
•late delivery percentage,
•green house gas emission
•demand
Operational factors
•load factor,
•average passengers per departure,
•crew working hours,
•departures per aircraft,
•pilots per departure,
•international operations,
•average age of aircraft fleet
•different aircraft brands.

Conclusion
Conclusion
The suggested technique combined the “fuzzy Analytic Hierarchy Process (AHP)” methods
and the “fuzzy Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS).” The
fuzzy AHP approach was used to assign weights to the criteria, and the fuzzy TOPSIS was used to
rank and identify the best-performing airlines. The study’s findings emphasize the need to use a
combined MCDM methodology to analyze operational performance in the airline sector. The
suggested framework provides airlines with a systematic and comprehensive way of assessing
their performance and identifying opportunities for improvement. Additional variables and
criteria can be explored in future studies, such as pre-flight, in-flight, and post-flight process
steps, as they broadly cover the entire operations and the methodology and applicability of the
proposed framework to diverse airline scenarios

Member
Member
6612100040 Teeradon Chanyaek
6612100040 Teeradon Chanyaek
6612100190 Worrapitcha Tumlee
6612100190 Worrapitcha Tumlee
6612100340 Donlaporn Somsai
6612100340 Donlaporn Somsai
6612102750 Kanjanapon Sa-nguansap
6612102750 Kanjanapon Sa-nguansap
6612103380 Nattasan Radcharin
6612103380 Nattasan Radcharin
6612100360 Juthaphat Janmee
6612100360 Juthaphat Janmee
6612100180 Weerapon Chaorailoi
6612100180 Weerapon Chaorailoi
6612103180 Kanyanat Pornpramual
6612103180 Kanyanat Pornpramual
6612103000 Piyawat Decha
6612103000 Piyawat Decha
6612102610 Phanicha Somnin
6612102610 Phanicha Somnin
6612101610 Onpreeya Thongman
6612101610 Onpreeya Thongman
6612101830 Thippakron Jaruthrakuchai
6612101830 Thippakron Jaruthrakuchai

ANALYSIS ON THE PROFIT RECOVERY OF
BUDGET AIRLINES AFTER THE EPIDEMIC
A CASE STUDY OF SPRING AIRLINES
By Zichen Liu , Zhongnan University of Economics and law
CAT11 1202 AIR TRANSPORT SYSTEM SECTION 2

SPRING AIRLINES' SITUATION BEFORE AND AFTER THE OUTBREAK
1. Market Position and Prospects:
Actively launched air routes between tourist cities and focused on attracting price-
sensitive passengers.
2. Operational Strategies:
Focused on the cost leadership strategy.
Using single-model fleets, and avoiding extra services
3. Market Competition and Challenges:
Faced competition from high-speed rail
The aviation industry in China faces frequent and fierce competition.
Before the Epidemic:

1. Impact of the Epidemic on Aviation:
Substantial financial losses for airlines due to plummeting daily flight numbers and travel
restrictions.
2. Performance and Recovery:
Operating income and cash flow rebounded in 2021, surpassing pre-epidemic levels.
Operating profit declined in 2021 due to rising aviation fuel prices, pressuring profit margins.
3. Government Support and Policies:
Policies included exemptions, preferential pricing, and tax relief.
4. Challenges and Opportunities:
Fluctuations in passenger numbers.
Operational strategies were crucial for overcoming challenges.
Market uncertainties and evolving low-cost airline dynamics .
After the Epidemic:

OPERATING
COSTS
PASSENGER
NUMBER
AVIATION
FUEL PRICES
GOVERNMENT
POLICIES
MARKET
TRENDS
Recovery and growth in
passenger numbers have a
positive impact on
operating income and cash
flow.
Reductions in operating
costs, including fuel costs
and other variable
expenses, contribute to
profit recovery.
Declining fuel prices
can lead to cost savings,
positively influencing
profit margins.
Supportive government
policies, such as exemptions
from civil aviation
development fund
Positive trends in the
low-cost airline market
and potential market
expansion contribute to
revenue growth.
1 2 3 4 5
FACTORS AFFECT SPRING AIRLINES' PROFIT RECOVERY.
S P R I N G A I R L I N E S

The easing of epidemic
control measures can lead
to increased passenger
numbers and revenue.
Effective operational
strategies, such as route
optimization and cost-
saving measures,
positively influence profit
recovery.
EPIDEMIC
IMPACT
OPERATIONAL
STRATEGIES
Improvements in
operating cash flow, as
observed in 2021,
contribute to financial
stability and the
potential for future
investments.
CASH FLOW
MANAGEMENT
Expansion into new
markets and routes
may contribute to
increased revenue and
profit recovery.
MARKET
EXPANSION
Monitoring and
understanding long-term
trends in passenger growth
and market dynamics can
inform strategic decisions
for sustained profit
recovery.
MARKET
TRENDS
6 7 8 9 10
FACTORS AFFECT SPRING AIRLINES' PROFIT RECOVERY.
S P R I N G A I R L I N E S

And Happy New Year
Merry
COMPARE TO THE OTHERS
KEY ACCOUNTING DATA
Spring Airline Thai AirAsia

AIRLINE STRATEGY GOVERNMENT ACTIONS
Changing travel trends
Enhanced online platform
Separate during flight services price.
Reduce additional charges for passenger.
Operate new routes .
Fund payable by exempted airlines exceeded.
reduced the operating cost of
the airline.
Expands Aviation Equipment Tax
Exemption Policy.
Reducing excise tax rates for jet
fuel oils.
CHAINA
THAILAND
Streamline the processes of temporary
aviation pauses.
Reducing airline operation costs.
Controlling operation costs.

CONCLUTION
This case study analyzes the profit recovery of Spring Airlines, a Chinese
low-cost airline, post-epidemic. Examining three years of data, the study
notes a rebound in operating income and cash flow in 2021, driven by
increased passenger numbers. However, profits declined due to potential of
China's low-cost airline market but acknowledges the short-term challenges
posed by recurring epidemics. Recommendations include ongoing monitoring
of passenger numbers and a deeper focus on cash flow in future research.
Overall, the study highlights the importance of government policies for the
industry's resilience.

Reference
Liu, Z. (2023). Analysis of the Profit Recovery of China's Budget Airlines After
the Epidemic: A Case Study of Spring Airlines.
(N.d.). Caat.or.Th. Retrieved December 17, 2023, from https://www.caat.or.th/wp-
content/uploads/2021/05/STATE-OF-THAI-AVIATION-INDUSTRY-2020.pdf
Thai AirAsia company limited report and financial statements. (2021). Aavplc.com.
https://www.aavplc.com/storage/download/financial-statements-thai-
airasia/2021/20220224-taa-fs-fy2021-en.pdf

Members
1 . 6 6 1 2 1 0 0 8 9 0 W a r i n t o r n B u n t h a n
2 . 6 6 1 2 1 0 3 4 3 0 A r i s a B u t p h o m
3 . 6 6 1 2 1 0 2 7 1 0 P a k h w a n T o n g c h i m
4 . 6 6 1 2 1 0 1 3 8 0 K a e w a s a C h i m w a i
5 . 6 6 1 2 1 0 3 7 8 0 L a l i t a N o i k l a y
6 . 6 6 1 2 1 0 3 6 8 0 S u n y a t a C h a i p r a m
7 . 6 6 1 2 1 0 1 1 7 0 G u n L i m p a n i t
8 . 6 6 1 2 1 0 2 3 7 0 P h o n g s a t o n C h u n u
9 . 6 6 1 2 1 0 1 1 0 0 W a s u k a n J o n g k l a n g
1 0 . 6 6 1 2 1 0 1 1 2 0 B a n n a w a t s o k a o k a
1 1 . 6 6 1 2 1 0 2 7 8 0 C h a y a d a P o n g p a y a k l e r t
1 2 . 6 6 1 2 1 0 3 5 3 0 W a c h i r a y a N a u n g j a k

TABLE OF
CONTENTS
Introduction
Demographics
Factors
Example
Adaptation
Conclusion
Recommendations

INTRODUCTION
The study focuses on the aviation sector's intense competition and the crucial role of
customer loyalty for airlines to gain a competitive edge. The goal is to identify factors
influencing airline passengers' loyalty.
The study focuses on the
crucial role of customer
loyalty for airlines.
Loyal customers are more
likely to choose a specific
airline for their travel needs
consistently.
Results of Nijolė
Batarlienė and Neringa
Slavinskaitė research.
Introduction
The importance of
customer loyalty.
Results of the
research.

DEMOGRAPHICS
Distribution of respondents by age.
Distribution of respondents by education.
Distribution of respondents by social status.
<18 18-25 26-40 41-60 >60
18-25
48%
26-40
32%
41-60
17%
>60
2%
Age
University degree non-university degree
Secondary education Vocational education
Not yet completed university
Not yet completed non-university
University degree
49%
Not yet completed university
18%
non-university degree
12%
Secondary education
10%
Vocational education
6%
Education
Employed Work and study Student
Unemployed Retired
Employed
58%
Work and study
21%
Student
16%
Unemployed
4%
Social status

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e
0
1
2
3
4
5
FACTORS
Factors affecting airline consumer
loyalty.
Opportunity to participate in the loyalty
program
Competitive prices for tickets
The frequency and direction of flights
The quality of service
The positive experience of previous
flights
Punctuality of flights
The price–quality ratio
The airline’s image and reputation

EXAMPLE
Ensuring effective baggage loss prevention, providing efficient and customer-
friendly services, enhancing travel convenience, ensuring aviation safety
certification, and offering customer-centric support in case of issues or
inconvenience are key factors contributing to customer satisfaction in the
airline industry.

ADAPTATION
Adapting to factors influencing customer satisfaction with airlines in Thailand involves
considering various complex elements:
Culture: The unique Thai cultural context may impact customer expectations and
interactions with airlines. Adjusting services to align with cultural norms can enhance
satisfaction.
Consumer Behavior: Understanding and responding to the behavior of Thai consumers,
such as prioritizing convenience and valuing service quality, is crucial for meeting
customer expectations.
Industry Competition: Intense competition in Thailand's airline market can drive airlines
to develop and improve services to retain existing customers and attract new ones.
Applying these factors requires a nuanced approach, considering the diversity of the market
and the trust customers place in the cultural context.

CONCLUSION
The most important factors when choosing an airline are
The price of the ticket.
The convenience of the schedule and directions.
The reputation of the airline, safety, and security.
The right price–quality ratio, competitive price, flight frequency and
directions, and the positive experience of previous flights have the greatest
impact on consumer loyalty.
Among the factors that promote loyalty to airlines, the opportunity to
participate in loyalty programs is the least influential.

RECOMMENDATIONS
Cultural Integration
Consumer-Centric
Approach
Technological
Advancements
Develop services
that showcase Thai
culture.
Tailor services to align
with the convenience
and preferences of
Thai consumers.
Integrate technology to
streamline processes,
enhance communication,
and offer convenient
services.
Employee Training
on Thai Culture
Conduct thorough
training for airline staff to
ensure they understand
and appreciate Thai
culture.
Sustainable
Practices
Given the increasing
importance of sustainability,
adopting eco-friendly initiatives
can appeal to environmentally
conscious Thai consumers.
HerearerecommendationsforapplyingfactorsinfluencingcustomersatisfactionintheThaiairlineindustry

RECOMMENDATIONS
Localized Marketing
Strategies
Collaboration and
Partnerships
Competitive
Pricing Strategies
Develop marketing
campaigns that
resonate with Thai
consumer behavior.
Foster collaborations
with local businesses or
tourism authorities to
enhance the overall
travel experience.
In a competitive
industry, strategic
pricing can be
crucial.
Innovative Loyalty
Programs
Design loyalty programs
that align with the
preferences and
behaviors of Thai
travelers.
Continuous
Market Research
Stay informed about
evolving consumer
preferences and industry
trends through regular
market research.

RECOMMENDATIONS
“Implementing a comprehensive strategy that considers these factors will
contribute to a more customer-centric approach, fostering loyalty and
satisfaction in the competitive Thai airline industry.”

Group members
6612100210
6612100370
6612100380
6612100540
6612100680
6612100900
6612100910
6612100960
6612101180
6612102390
6612102850
6612103140
6612103260
6612103460
Chantarat Thanomboon
Intharat watcharayothin
Chanunporn Deepijarn
Thiti Thongmueang
Pichayapa Pholgampholi
Takkorn Karapim
Benchaphon Boonmeerit
Chanipa Somboon
Jirasamon Nuansrion
Thanachai dongdung
Witchayanon Preecharoenchinapat
Kanokorn Uranan
Tassama Muangpun
Thivakorn Pengpan

CASH MANAGEMENT OF
CASH MANAGEMENT OF
MULTINATIONAL AIRLINES
MULTINATIONAL AIRLINES
YAŞAR KÖSE & CEYDA AKTAN
YAŞAR KÖSE & CEYDA AKTAN
A CASE STUDY ON
A CASE STUDY ON

RESEARCH OBJECTIVES
To study and analyze the cash management of a multinational airline in the context of TK.
To understand effective cash management practices in the airline industry.
To analyze the financial impact of airline operations conducted.
To provide recommendations for the improvement of cash management in multinational airlines.
THE IMPORTANCE OF THIS STUDY
Cash management
Improved financial performance
Achievement of business objectives
Financial advice
Understanding the financial condition of the airline industry
TK

YEAR 2020 RESULTS
SEATS OFFERED (CAPACITY)
PASSENGERS FLOWN
AIRLINE REVENUE LOSS
- 50 %
- 2.703 BN
- USD 372 BN
YEAR 2021 RESULTS
SEATS OFFERED (CAPACITY)
PASSENGERS FLOWN
AIRLINE REVENUE LOSS
- 40 %
- 2,203 M
- USD 324 BN
COVID 19 PANDEMICS
SOURCE : IATA

TRENDS IN THE AIRLINE INDUSTRY
BUSINESS EXPANSION
The overall picture of the airline industry shows that there is a
trend that airlines are trying to expand their businesses both
regionally and internationally.
The airline industry requires effective cash management in
emergency situations, making the industry likely to improve
cash management in uncertain conditions.
OPERATIONS IN EMERGENCY SITUATIONS
INITIAL DETERMINATION OF TK
CASH MANAGEMENT TO REDUCE RISK
FINANCIAL PLANNING
IMPORT OF FINANCIAL INSTRUMENTS
FINANCIAL RISK MITIGATION

is a crucial topic in the realm of finance and business management as effective cash management plays a vital role
in sustaining and succeeding in business operations, particularly for companies with activities both domestically and
internationally oR multinational companies.
CASH FORECASTING AND PLANNING
RISK REDUCTION IN FINANCE
CROSS-BORDER OPERATIONS
ENHANCING FINANCIAL FLEXIBILITY
ADDING VALUE TO FINANCIAL SERVICES
FINANCIAL RISK PREVENTION

PLANNING AND FORECASTING
BANK RELATIONSHIP MANAGEMENT
INVESTMENTS AND PAYROLL MANAGEMENT
FINANCIAL TRANSACTIONS RELATED TO AVIATION
FINANCIAL RISK PREVENTION
ADJUSTING FINANCIAL RESOURCES
CASH MANAGEMENT IN AIRLINE
refers to the processes and activities related to the financial resource management of an airline company or the
aviation industry from both financial resource and financial activity perspectives. It is an essential aspect of
business operations as effective cash management impacts business flexibility, operational efficiency and financial
risk reduction.
ROLES AND FUNCTIONS OF CASH MANAGEMENT IN THE AIRLINE INDUSTRY
Cash management in the airline industry involves making informed decisions, planning, and executing financial
activities related to aviation operations. It plays a pivotal role in facilitating financial transactions, predicting and
preventing risks, and conducting business efficiently.

METHODOLOGY
BANK 3 BANK 4
BANK 1 BANK 2
FLAG
CARRIER
AIRLINE
IATA
CLEARING
HOUSE
AIRLINE A AIRLINE B
AIRLINE C AIRLINE D
AN AIRLINE THAT HOLDS SIGNIFICANT STATUS AND PLAYS A CRUCIAL ROLE IN REPRESENTING THE COUNTRY OF ORIGIN
CASH INFLOW CASH OUTFLOW

FINANCIAL TRANSACTION SYSTEMS AND INTERNATIONAL FUND TRANSFERS
ICH - IATA CLEARING HOUSE
CHIPS - CLEARING HOUSE INTERBANK PAYMENTS SYSTEM
SWIFT - SOCIETY FOR WORLDWIDE INTERBANK FINANCIAL TELECOMMUNICATION
ICH is a part of the International Air Transport Association (IATA) and
is an entity that manages the verification and payment processes
within the global aviation information system
CHIPS is a clearinghouse for interbank payments based in New York, USA. The system provides
services for interbank money transfers and financial transactions globally.
SWIFT is a messaging system used for financial transactions between banks and financial
institutions worldwide. Many banks globally are SWIFT members, using the network to
securely exchange information and conduct various financial transactions.
MEMBER LIST

100 % SUBSIDIARIES
MANAGEMENT
AIRLINE CASH FLOWS AND FINANCIAL STATEMENT
AIRLINE COMPANY
CASH OUTFLOWS
Operating Activities
Investing Activities
Financing Activities
BALANCE SHEET
Assets / Current
Assets / Cash & Cash
Equivalents
CASH FLOW STATEMENT
CASH INFLOWS
Operating Activities
Investing Activities
Financing Activities
AIRLINE COMPANY
+
OPERATIONAL CASH INFLOW
NON - OPERATIONAL CASH INFLOW
-
OPERATIONAL CASH INFLOW
NON - OPERATIONAL CASH INFLOW

INFLOWS OUTFLOWS
0
2,000
4,000
6,000
8,000
INFLOWS OUTFLOWS
0
100
200
300
400
500
INFLOWS OUTFLOWS
0
1,000
2,000
3,000
4,000
5,000
6,000
CASH FLOW STATEMENTS IN 2020
MILLION USD
NET CASH FLOWS = INFLOWS - OUTFLOWS
= - 264 Million USD
7710
MILLION
USD
7446
MILLION
USD
= - 270 Million USD
MILLION USD
192
MILLION
USD
462
MILLION
USD
MILLION USD
1384
MILLION
USD
5418
MILLION
USD
= - 4034 Million USD
FULL SERVICE LOW COST FULL SERVICE

CASH IS CRUCIAL FOR AIRLINES, BOTH FOR DAILY OPERATIONS AND INVESTMENTS.
OPTIMAL CASH LEVEL DEPENDS ON FACTORS LIKE ACTIVITY, RETURNS, MARKET CONDITIONS.
PREVIOUS STUDIES EMPHASIZE MINIMIZING HOLDING COSTS, EVALUATING INVESTMENT
OPPORTUNITIES, FACILITATING CASH TRANSFERS, AND DEVELOPING CENTRAL CASH MANAGEMENT
SYSTEMS.
IATA CLEARING HOUSE AND BANKING TECH OFFER AIRLINES EFFICIENT AND SECURE
INTERNATIONAL AND NATIONAL OPERATIONS.
CASH FLOW STATEMENTS AND BALANCE SHEETS HELP MONITOR CASH SOURCES AND USES.
CASH FORECASTING MODELS AND TECHNIQUES (CASH BUDGETING) REDUCE CASH FLOW RISK.
COVID-19 IMPACTED AIRLINE CASH FLOWS, LEADING TO MEASURES LIKE COST-CUTTING,
PURCHASE ADJUSTMENTS, MERGERS, AND GOVERNMENT SUPPORT.
CONCLUSION

6612100230 TONKHAO PRATEEPPREECHA
MEMBER
6612101520 KANUTSANON KHAMTAN
6612100060 AITSARAPHONG BANTISAK
6612100170 POONSAK JANTRANON
6612100400 MAYSA THANIKKUN
6612101050 PATARAPON CHAROENSUK
6612101700 CHRISTIAN VARAT SIMONSEN
6612102620 KULLANIT SOONHIRUN
6612103320 ITTIPHAT CHAIMEBOON
6612103400 PHAKHAPHON LAOSRI
6612103490 PAWARA AIAMLAOR
6612103560 ARUN CHUJAI
6612103590 CHEERAPHOT NGAUNSAMRERNG
6612101470 SUPHANIDA LEKNAMNARONG
6612101210 YANISA DECHPAE

Customer Responses
To Advertising Social
Media Choices When
Choosing An Airline
A CASE STUDY OF LOW-COST AIRLINES IN THAILAND
CAT11 1202 AIR TRANSPORT SYSTEM

1
2
What types of social media do customers
prefer to use when choosing a flight?
How does advertising social media
influence airline customers?

1
2
Google form and in-person questionnaire
Customers of low-cost airlines in Thailand
Methodology
Sample

Gender, education level and
occupation were also factors that
influenced customers' advertising
media preferences. when choosing
airlines, which can help airlines tailor
their marketing strategies to target
specific customer segments.
Demographic characteristics have
an influence on customers' choices.
Results :

• Airlines can use social media to
enhance their market strategy and gain
competitive advantages by choosing
the appropriate advertising media for
their target customers.
Impact of social media platforms
on customers' airline choices:
Results :
Facebook, is the most important platform that
customers respond to when choosing an airline ticket.
Instagram and Line application also play a role in
connecting customers to the airline website
conveniently and creating better interaction with
customers. Offline media is considered a minor virtual
channel that affects customer response.

Passengers make positive decisions about airlines through
advertisements they see on social media. Because customers
use social media on a daily basis. Affects customers‘ purchase
intentions when purchasing airline tickets. Social media is
ubiquitousandcanattractcustomersquickly.
Airlines can use social media to improve their marketing
strategies to attract customers. Airlines will gain a competitive
advantage if they choose the right advertising media for their
segmenttargetcustomers.
Conclusion

6412100820
6612100220
6612100330
6612100600
6612100990
6612101370
6612101620
6612101680
6612102320
6612102540
6612102630
6612103060
6612103520
6612103770
Ajchara
Jutapak
Nattatan
Panuwat
Wanfahsai
Jirakarn
Panisara
Kunnatda
Suphawan
Vorabuttri
Sirawit
Chutikarn
Rungphairin
Sirikittiya
Wattanachalee
Pikkunee
Jaichuen
Jikum
Taengsuwan
Sonpeauk
Khamphien
Khunwat
Junjumruan
Sensa-ard
Sinpathanaphun
Pothijak
Radabut
Authittasarn
Members

Thank You
A CASE STUDY OF LOW-COST AIRLINES IN THAILAND
Do You Have Any Question?
REF: E3S WEB OF CONFERENCES 389, 05010 (2023)

DEL
DEL
DEL TA
TA
TA AIRLINES
AIRLINES
AIRLINES
ENHANCING CUSTOMER SATISFACTION IN THE AIRLINE INDUSTRY
A CASE STUDY OF

Driven by globalization, technological advancements, covid-19
pandemic and changing consumer preferences, the airline
industry has experienced significant transformation over the
years. Delta Airlines has played a pivotal role in shaping the
landscape of air travel. Delta Airlines, founded in 1928, has
witnessed and adapted to the changing dynamics of the industry
Through strategic expansions, acquisitions, and technological
advancements, Delta has established itself as a prominent global
airline, connecting passengers to various destinations worldwide
INTR
ODUCTION
MAIN PURPOSE
Focuses on enhancing customer satisfaction in the airline
industry, with a specific case study of Delta Airlines

It's evident that Delta Airlines has established a
robust customer loyalty strategy through programs
like SkyMiles, Delta One Suite, and Delta Comfort Plus.
Their commitment to customer service, training
initiatives, and recognition by J.D. Power contribute to
a customer-centric approach. Additionally, their focus
on sustainability aligns with environmental concerns,
enhancing both reputation and customer satisfaction.
Delta Airlines faces operational challenges, such
as delays and inconsistencies in service quality,
stemming from factors like weather conditions
and diverse destinations. The airline's international
coverage is comparatively limited, impacting the
seamless connectivity for members. Additionally,
the higher prices compared to some competitors
put pressure on Delta to consistently deliver a
superior service that justifies the cost, posing a
risk to customer satisfaction and loyalty.
STRENGTHS AND WEAKNESSES
Strengths Weaknesses
Delta Airlines' customer satisfaction, in which strengths, weaknesses,
opportunities, and threats are assessed. SWOT analysis is an essential tool
for performance evaluation, resource allocation, and strategic planning in
various industries and organizations.
SWOT analysis

Opportunities in aviation industry
Delta Airlines has a significant opportunity to enhance
customer satisfaction by embracing new technologies like AI
and data analytics. Implementing chatbots and virtual
assistance can offer real-time support and long-term cost
efficiency. Utilizing data analytics allows Delta to understand
customer preferences, address concerns, and refine services.
Given the feedback about First Class, focusing on premium
personalized services could be a strategic move to improve
satisfaction in this segment.
Threats in the aviation industry
Delta Airlines faces threats from economic downturns, as reduced
travel during such periods affects demand and profitability.
Fluctuations in fuel prices can also impact operating costs, adding
pressure on maintaining service quality. Intensive competition,
especially from low-cost carriers, poses a challenge, particularly if
competitors improve service quality. Regulatory changes,
particularly in security measures and air traffic control, may lead to
inconveniences and disruptions, impacting customer satisfaction.
These external factors highlight the vulnerability of the airline
industry to economic, competitive, and regulatory influences.

Results
Overall star ratings over the years, with
the lowest point occurring in 2021. This
indicates a period of relatively lower
customer satisfaction compared to
previous years.

SUGGESTION
Implementing these strategies at Delta Airlines can boost customer
satisfaction by proactively tackling challenges, maintaining
consistent service quality, expanding globally, emphasizing
sustainability, and catering to First Class travelers' unique needs.
EXAMPLES
1. Leveraging Technology to Minimize Delays
2. Establishing Uniform Service Standards
3. Broadening Global Networks
4. Committing to Sustainability
5. Quick Response to Policy Changes
6. Tailoring Amenities for First Class

In summary, this paper delves into enhancing customer satisfaction
in the airline industry, specifically analyzing Delta Airlines through
Skytrax reviews and conducting a detailed SWOT analysis. The
suggested strategies aim to address operational challenges, ensure
consistent service quality, expand global networks, prioritize
sustainability, and adapt to policy changes swiftly. However,
limitations, such as reliance on a single platform and the subjective
nature of sentiment analysis, should be acknowledged. The findings,
though specific to Delta, offer valuable insights for airlines seeking to
improve customer satisfaction.
CONCLUSION

Prem Jangsittavej. 6612100720
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Rachan Muenthaisong. 6612100410
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Jakkrapob Boonjathit. 6612102690
Thanatorn Pumsod. 6612101260
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Bhuriphat Thepthong. 6612100450
Natchanont Yiarayong. 6612101510
GROUP MEMBER

The impact of corporate digital
communication on brand reputation
and consumer engagement in the
Moroccan airline industry
Air Transport System CAT11 1202

Table
of
content
Introduction
Background & Context
Coporate Digital Communication
Brand Reputation
Consumer Engagement
Conclusion

The Moroccan airline industry, rooted in the 20th century, saw substantial
growth and changes, notably with the establishment of Royal Air Maroc in
1957. Factors like air transport liberalization, the Open Skies Agreement
with the EU in 2006, and the rise of low-cost carriers have driven
competition, expanded routes, and increased accessibility. Despite
successes, challenges including fuel price volatility, economic downturns,
and the recent impact of COVID-19 have emerged and affected passenger
demand. In response, Moroccan airlines are leveraging digital
communication as a crucial tool for competitiveness.
BACKGROUND AND CONTEXT
History of the Airline Industry in Morocco

Role of Corporate
Digital Communication
in the Growth and
Expansion of the
Industry
Digital communication is integral to the airline industry's
growth, allowing for enhanced customer outreach and
improved services. The adoption of social media, mobile apps,
and websites enables real-time engagement with customers,
addressing concerns and gathering feedback for service
improvement. The use of digital channels has also led to the
introduction of innovative services like online booking and
baggage tracking, enhancing operational efficiency and
customer satisfaction. For airlines in Morocco, digital
communication is a crucial component of their growth strategy,
enabling differentiation and effective global market
competition.

Changing Landscape of Consumer
Expectations and the Role of Digital Platforms
Role of Digital
Platforms
Changing Consumer
Expectations
Digital platforms have fueled these
changes by offering transparency in
pricing, customizable options, and a wide
array of choices. Moreover, the rise of
user-generated content on social media
and review sites has amplified the
importance of brand reputation and peer
feedback in influencing travel decisions.
The evolution of digital tech and online
platforms has drastically shifted
consumer expectations in the airline
industry. Travelers now demand
seamless, tailored experiences through
their preferred digital channels, seeking
instant access to information and
services.

E
m
i
r
a
t
e
A
i
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l
i
n
e
s
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t
i
h
a
d
A
i
r
w
a
y
s
Q
a
t
a
r
A
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a
y
s
R
o
y
a
l
A
i
r
M
o
r
o
c
A
i
r
A
r
a
b
i
a
0
10,000,000
20,000,000
30,000,000
40,000,000
LinkedIn
Facebook
Instragram
Twitter
Youtube
Followers of the top five airlines in Morocco
on social media as of April 27th, 2023

Role of Digital
Communication in
Building and Maintaining
Brand reputation
Establishing
Reputation
Maintaining
Reputation
Digital communication is crucial for building a
strong brand image. Platforms like social media
allow companies to showcase values,
achievements, and offerings, fostering credibility
and trust among audiences. Mobile apps and
websites contribute to seamless user
experiences, enhancing brand reputation.
Additionally, digital communication facilitates
direct interaction with stakeholders, enabling
companies to address concerns, gather feedback,
and exhibit commitment to customer satisfaction.
Active engagement and a strong online presence
aid in managing and protecting brand reputation
from potential risks.

Impact of Digital Communication
Strategies on Consumer
Engagement and Loyalty
Effective digital communication strategies significantly
impact consumer engagement and loyalty. Leveraging digital
channels enables organizations to create tailored, engaging
content, fostering emotional connections with audiences.
Platforms like social media allow for sharing compelling
stories, visuals, and experiences, encouraging interaction,
feedback, and positive word-of-mouth. Personalized email
marketing and mobile app notifications maintain regular
contact, reinforcing brand loyalty and encouraging repeat
business. Continuous engagement through digital channels
fosters long-term customer relationships, shaping brand
reputation and ensuring business success in the digital age.

Brand reputation and consumer
engagement
Brand reputation, shaped by trust and customer
satisfaction, significantly influences market share and
profitability in the competitive airline industry (Seo & Park,
2018). Engaged consumers, formed through interactions and
positive experiences, drive loyalty and business success
(Bakır et al., 2022). In the airline sector, digital
communication is crucial for building brand reputation and
fostering consumer engagement (Sigurdsson et al., 2020).
Airlines use digital to communicate values, offerings, and
achievements, building trust and positive associations
(Dijkmans et al., 2015). Real-time information, personalized
experiences, and addressing concerns via digital channels
enhance satisfaction and brand reputation (Karaağaoğlu &
Çiçek, 2019). Through social media, mobile apps, and email
marketing, airlines create tailored content that resonates
and cultivates consumer loyalty (Chen, 2017)

Building Brand Reputation:
Airlines utilize digital platforms to communicate values, offerings, and
achievements, thereby establishing trust and positive associations.
Real-time information dissemination and personalized experiences
through digital channels contribute to enhancing customer satisfaction
and bolstering brand reputation.
Relationship between Digital Communication,
Brand Reputation, and Consu
mer
Fostering Consumer Engagement:
Social media, mobile apps, and email marketing are employed by airlines to craft
tailored content that resonates with customers, leading to the cultivation of
consumer loyalty.
Addressing consumer concerns via digital channels contributes to a heightened level
of engagement and satisfaction within the airline industry.

Factors Influencing the Effectiveness of Digital Communication
Strategies for Reputation Management and Consumer Engagement
1. Content Quality and Relevance:High-quality, relevant, and engaging content captures the target
audience's attention, fostering positive brand associations.
2. Responsiveness and Personalization : Timely and personalized responses to customer inquiries
demonstrate commitment to satisfaction, contributing to a strong brand reputation.
3. Channel Selection and Integration:Choosing and integrating digital channels aligned with audience
preferences maximizes reach and engagement.
4. Consistency and Coherence : Maintaining consistent and coherent messaging across digital platforms
reinforces brand identity, building trust with the target audience.
5. Monitoring and Analytics:Regularly monitoring and analyzing digital communication performance
enables adaptive strategies, optimization, and better responsiveness to evolving audience needs.
By considering these factors, airlines can develop and implement effective digital communication
strategies,
enhancing brand reputation and driving consumer engagement for long-term success in
thecompetitive market.

The analysis of Moroccan airlines (Etihad Airways, Air Arabia Maroc, Emirates Airline,
Royal Air Maroc, Qatar Airways) underscores the importance of corporate digital
communication strategies in the industry. Key findings include the use of multi-
channel approaches, effective utilization of social media for brand projection, and
factors like content quality and personalization influencing strategy effectiveness.
Effective digital communication directly impacts brand reputation and consumer
engagement, crucial for staying competitive in the evolving digital landscape.
Ongoing research and development are essential, with a focus on comparative
analyses and industry-wide examinations. Moroccan airlines can secure a leading
position by leveraging digital communication to enhance brand reputation and
engage with consumers in the global market.
CONCLUSION

Pachanon Moonsarn 6612101160
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Komchan Pannuang 6612101450
Nantapob Poonwith 6612101500
Pannawat Keeratiwitchayanant 6612101560
Bordee Buachuen 6612101630
Chotipat Eiamsaard 6612102920
Akkaranan Nganpiriyapanit 6612103240
Jakkapob Sada 6612103270
Pongvit Sornsard 6612103450
Phunamfah Yeamsri 6612103510
Napasorn Navawutcharakul 6612103750

Estimations Viability of
L C C S B U S I N E S S M O D E L I N K O R E A

The pre-LCC era was characterized by a focus on premium services. The aim is to provide
a comfortable and luxurious travel experience. Doing it now often comes at a higher cost
compared to the budget-friendly options introduced later.
THE KOREAN INDUSTRY BEFORE
THERE WERE LCCS ?

LCC
What are each type like ?
In summary, LCC helps in expanding the market. add connection and healthy competition, while
AwA allows traditional service providers to participate in low-cost market segments. while
maintaining the advantages of a full-service operation. Both play a role in shaping the direction of
the Korean airline industry.
AwA

The difference in performance between an LCC and an independent AwA is
influenced by factors such as market position. economies of scale financial
stability and strategic considerations Cooperation with established carriers
appears to offer advantages that result in higher efficiency levels for AwAs.
Compared to independent carriers in the low-cost carrier sector
How are they different? How do the differences affect efficiency?

FACTORS AFFECTING THE FEASIBILITY OF THE KOREAN LCC BUSINESS
HOWEVER, THE TREND IS GOOD, MANY LCCS IN SOUTH KOREA ARE GROWING. THIS
MAKES IT POSSIBLE TO TRAVEL AT AFFORDABLE PRICES ON POPULAR ROUTES IN
SOUTH KOREA. WITH BENEFITS SUCH AS FREE MEALS AND CHECKED BAGGAGE AT
AN AFFORDABLE PRICE.

ANALYSE THE AIRLINE'S FINANCES.
This makes up about 40% of the market for LCCs.
It has grown financially at a rapid rate of 36.4%, but net
profits have been negative since its inception.
Negative debt ratio Indicates an unstable financial situation.
LCC
01
Shows net profit and positive financial shareholders'
equity. In addition to stable financial growth It shows a
lower negative debt ratio, a sign of stability, compared to
Group 1. It is therefore clear that the two types of LCCs
differ significantly in terms of profitability and stability.
financial This reflects the diversity of the business
structure of the LCC aviation market in Korea.
LCC
02

SWOT OF JEJU AIRLINE
weakness
Jeju Air doesn't feel part of the institution.
And still building awareness in some
overseas markets, ancillary purchasing is not
strong in Korean LCCs.
Example of airline
Strength points
jeju Air is Korea's largest LCC airline. It is the
third largest domestic airline. It is an
independent airline and does not operate
long-haul flights.

SWOT OF JEJU AIRLINE
Threat
Health and politics affect inward demand.
Startups may flood the market again.
Korea is enforcing extensive regulations.
Example of airline
Chance
Seoul Incheon Terminal 2 opens space at
Jeju Air hub

high operating costs Fuel and labor costs in
relying on international travel
SWOT OF SINGAPORE AIRLINES
weakness
Example of airline
Strength points
Offering premium services It has a strong
reputation of brand partners and
partnerships.

Intense competition
Pandemics and health crises (COVID-19)
Fluctuations in fuel prices
SWOT OF SINGAPORE AIRLINES
Threat
Example of airline
chance
Expansion of the route network
Shipping service
Premium Economy and Leisure Market

ATS
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JUSTICE BASED RECOVERY EXPECTATIONS OF
AIRLINE PASSENGERS AFTER SERVICE
FAILURE - A CONCEPTUAL STUDY - A CASE
STUDY OF GOA – INDIA

Service recovery refers to measures taken to address the issues of unhappy customers. If a service
provider's failure does not match the category of failure that occurred, the difference between that type
of failure and the type of recovery offered can seriously harm loyalty, customer satisfaction, and
retention. Therefore, it is important for any service organization because it has strong influence on how
customers perceive and receive the service recovery strategies provided by the service provider .
The type of service failure is researched earlier with characteristics of failure situations. The customer is
more likely to view the service recovery holistically, based on severity and controllability in conjunction.
This research posits that a composite view of the failure situation based on severity and controllability
would more clearly determine the customer’s expectation of justice from service recovery.
This research studied airline industry because of its salience to the tourism dominated state of Goa, in
India. Studies on sectors related to tourism such as airlines, are utmost essential, as the small airport of
Goa is often overburdened with huge passenger traffic and consequent deficit in service. Since Goa
receives international passengers, the expectation of services is higher. However, no study has been
found on passenger expectations on service failures in Goa in extant literature.
INTRODUCTION

Classification of service
failures
•The meaning of service failure.
Caused by inability to provide core services Not being attentive to the service of the service provider can be a cause for the
customer. This failure will vary depending on This failure can occur for many reasons, such as the core services that each business
offers to customers or that Employees have a bad attitude towards service work.
• Analyze the causes of service failure types as follows.
1. Unable to control the scope of the project.
2. Communication between different teams Not thorough and unclear
3. There is no clear determination of responsible persons and delivery plans.
4. Incorrect prioritization of work
5. Unable to analyze the true root of the problem.
summarize
If a service provider hopes to have high sales and profits, they should pay attention and pay attention to service to customers. They
should improve if there are mistakes in order to prevent service failure as a result. Time affects service. Problems should not be left
for too long. Problems should be resolved as quickly as possible.

Prior research has studied severity and controllability traits separately, leaving a
gap in literature, particularly with respect to the expectation of redress. Our study of
the complaints compositely with characteristics of perceived severity and
controllability w ould enrich the theoretical knowledge of expectations of justice
following the type of negative experience. It will also enable the airlines to
effectively address the failure situations and retain the passengers in a competitive
environment. Hence, it significantly contributes to the dual aspects of adding to the
theory and having managerial implications.
Prior Research on Service
Failures in Airline Sector

This case study examines airline passengers' expectations for fair
recovery after service failures that are important to them. The objective of
this study is to reveal the severity and controllability of service failures as
perceived by passengers of Full Service Network airlines in Goa, India, and
to ascertain differences. They expect fairness in a variety of failure
situations. According to perception of severity and ability to control
BACKGROUND AND OBJECTIVES
OF THE STUDY

A conceptual model is formed by four distinct combinations of the characteristics
such as S evere C ontrollable, S evere N ot C ontrollable, N ot S evere N ot C
ontrollable, and N ot S evere C ontrollable. It is posited that the order of justice-
based recovery expectations of airline passengers will differ across four distinct
combinations representing the four quadrants of the model. The justice based
recovery expectations would vary depending on the circumstance type.
Proposed Conceptual
Model

1.List of failure situations
2. Classification of failure situations according to the quadrants of the model, divided into 4
levels.
2.1 Violent and uncontrollable
2.2 Severely uncontrollable
2.3 Not severe but uncontrollable
2.4 can be severely controlled
3. An empirical test of fair expectations.
METHODOLOGY

Problem analysis
1. To solve the problem of dissatisfied customers and win the hearts of as many
customers as possible.
2. The service provider's response to service failures and discrepancies that occur.
3. Control seriousness, ability to control
4. Set customer expectations. For justice from service recovery
5. Research the tourism industry because it is the backbone of the economy.
6. Handle complaints regarding passenger convenience.
STATISTICAL TESTS AND
RESULTS

Attributional Approach to Service Failure and
Recovery
AIMS/OBJECTIVES of the study
This study aims to investigate the following objectives:
1. To unearth the severity and controllability of the service failures as perceived by Full Service Network Carriers (FSNC)
2. To ascertain the dissimilarities, in expectation of failure situations as per their perceived severity
Proposed Conceptual Model
A conceptual model is formed by four distinct combinations of the characteristics of severity and controllability the justice-based recovery expectations would vary depending
on the circumstance type.
Q1-Not Severe Controllable
Q2- Not Severe Not Controllable
Q3- Severe Not Controllable
Q4- Severe Controllable
DISCUSSIONS AND THEORETICAL CONTRIBUTIONS
the passengers in airline industry havedifferent expectations of justice in service failure situations
In severe situations 1 and 4, whether controllable or not, the customers preferred
interactional justice primarily This shows that the customers expect the service provider to be sensitive and thus they expect apology forthright. When the situation is deemed
severe but not controllable, they demand and due to non-controllability, the expectation of distributive compensation is last of the three.
However, in case the situation is deemed severe and controllable, the next preference is given to distributive justice like compensation
Thus, the focus of customers in case of controllable but
not severe failures seems to be rather task oriented, to primarily reverse the wrong done in
service or claim compensation, quickly and courteously.
The customers may not expect interactional justice, considering the non-controllability and also non severe nature of failure. They may expect procedural justice in lesser
degree due to the triviality of the situation. This may have resulted into the top rank of distributive justice as expectation for redress.

This study helps to strategize appropriately by indicating which of the service failure
situations are viewed by passengers as severe controllable, severe not controllable,
not severe not controllable and controllable not severe and accordingly provide redress.
This could help to stall the flight of passengers to other competitors.
Excellent service recovery might lead to a condition known as "recovery paradox," as per
previous studies. (Kim et al., 2009). It is a situation where in the customer satisfaction is
greater following service recovery than it is for those customers who did not have any issues.
(Smith & Bolton, 1998). Therefore, the airlines may outperform recovery expectations, which
might raise passenger satisfaction levels and thus turn them to loyal customers. This research
can help to deliver the redress that exceeds recovery expectations by minimizing costs, due to
the knowledge about precise redress requirements.
MANAGERIAL IMPLICATIONS

SUGGESTIONS FOR FUTURE
RESEARCH
Lovelock et al., (2001) show that because services are dissimilar, service recovery would not be
the identical in different service settings. Hence, we caution that generalization across
industries may not hold good. The study may need replication in different service settings
across various industries. In future research, it would be worthwhile to investigate whether the
expectation of justice would vary among different types of passengers as moderators, between
different situational there were indications
of passengers being treated unequally with regard to their frequency of flying and such
business considerations. It would be expedient to research whether types of passengers would
influence the justice expectations besides the dimensions of service failure situations.

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Study on the
Financial Risks
of Listed
Airlines-Based
on Air China
Case Study
CASE 12
CASE 12

Table Of Contents
INTRODUCTION
ANALYSIS OF FINANCIAL STATEMENTS AND IDENTIFICATION OF FINANCIAL RISKS
FINANCIAL RISK ANALYSIS OF LISTED AIRLINES
CONCLUSION
PROFITABILITY ANALYSIS

Introduction
With the development of the scientific economy,
air transport has become an important mode
of transport in people's daily travel, and after
the financial crisis in 2008, China's aviation industry
has shown rapid development and good
development opportunities - the average annual
growth rate of passenger turnover exceeds 8%.
However, there are still many problems in the
development of China's aviation industry. All this is
reflected behind the fact that China's aviation
industry is facing great financial risks, and financial
risks 3

Financial Risk Analysis
of Listed Airlines
Solvency Analysis
As a capital-intensive enterprise, airlines need a lot of
capital for their daily operations, so many airlines will
use debt leverage to finance their operations to solve
their capital problems. But it is well known that too
much debt will lead to high operating pressure, reduced
debt servicing capacity and, in some cases, insolvency.
4
SHORT-TERM DEBT SERVICING CAPACITY
LONG-TERM SOLVENCY

Profitability Analysis
Net asset profitability
Return on net assets (ROE) is the ratio of net profit to
net assets of an enterprise, which reflectsthe
profitability of shareholders.
Net profit generating capacity from sales
Net sales margin indicates how much net profit a
company can make per unit of sales revenue, andis
an indicator of the quality of a company's stable
access to revenue and income.
5
NET ASSET PROFITABILITY
NET PROFIT GENERATING
CAPACITY FROM SALES

Analysis of Financial
Statements and Identification
of Financial Risks
DEBT SERVICE RISK
GROWTH RISKS
PROFITABILITY RISKS
DUPONT ANALYSIS
The table 7 shows that in terms of assets, Air
China's assets have increased in size and its
total liabilities have decreased, which is a good
trend. However, in 2020 Air China achieves total
operating revenue of RMB 69.5 billion, a
decrease of RMB 66.7 billion year-on-year.

DEBT SERVICE RISK
GROWTH RISKS
7
Liquidity is a reflection of a company's ability to
realize its assets; if a company has liquid assets,
it has a better ability to repay its debts.
company's assets are weak in terms of liquidity,
but the current liabilities are high in proportion.
companies need a lot of capital to expand their
production capacity and capture the market, at this
time, companies and investors look at the growth rate
of performance and market share; in the maturity
phase, the competition pattern is basically stable

Profitability risks
8
Stronger profitability is essential for Air China as a mature company, but the
company's net profit after deduction has been sliding from 7,227 million to
6,174 million during 2017-2019, indicating that the company's profitability is
weakening. Coupled with the impact of COVID-19 in 2020, the company's
deducted net profit in 2020 fell directly to -14.74 billion, showing a complete
loss.
The DuPont analysis is a comprehensive analysis of a company's financial
position, breaking down return on net assets into return on total assets
and equity multiplier, where return on total assets can be broken down
into net sales margin and total asset turnover, which reflect the
company's profitability, operating capacity and leverage levels
respectively.
DuPont Analysis

Conclusion
A case study of Air China follows. The analysis of the data shows that and
many of the financial risks are related to characteristics. In terms of
solvency, the company’s use of debt leverage is problematic and its
short-term and long-term solvency is not high. asset liquidity issues
require attention. However, as Air China has sufficient bank credit lines to
support it, the short-term debt servicing problem can be mitigated to a
certain extent, but the fundamental problem requires optimisation of the
capital structure and effective cost control. In terms of growth and
profitability, it was concluded that although Air China, as a mature
company, is not growing as fast as emerging airlines in all capacities, it
must maintain sufficient cash flow, control costs reasonably and
establish an effective financial risk control mechanism for the company’s
sustainable
11

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Within-Airlines Model
SOUTH KOREAN AIRLINES
SOUTH KOREAN AIRLINES
THE CASE OF
THE CASE OF
Helping Full-Service Carriers
Challenge Low-Cost Carriers

South Korean aviation market has
grown rapidly with the emergence
of Low-Cost Carriers (LCCs).
Full-Service Carriers (FSCs)
adopted the airline-within-airline
(AWA) model to compete with
ILCCs.
introduction
introduction

Main
Main
Low Cost Carriers (LCCs) is a business model that lean
from Full Service Carriers (FSCs) model, target to be a
budget-friendly choice of traveling. With the economic
crisis, people want to travel cheaper, that makes a difficult
situation to FSCs which target the luxury. South Korean
FSCs adopted the airline-within-airline (AWA) model to
compete with LCCs.

Main
The market shares of FSCs, AWA and
ILCCs from 2006-2019. The chart show
that AWA have grown over time, but
ILCCs still hold more market share
compared to AWA
The trend of the market shares in South Korean aviation

Title Page Conclusion
Main
Conclusion
Cost-focused services offered by FSCs attract travelers back to the industry.
AWA have been successful in competing with ILCCs and gaining market shares.
AWA may struggle to compete with stable ILCCs in a saturated market.
AWA may need to separate operations from parent network carriers in a saturated market.
Passengers choose AWA due to trust and positive perception of parent company.

Main
AWA in South Korea aviation market could be called as a
successful in competing with ILCCs, and have some
similarly to others airline's AWA.
The key factors of this business model are market
conditions business strategies executives vision

Main
AWA in South Korea success by growing of market conditions,
have a right strategies to compete against ILCCs
intense battles of AWA and ILCCs

Title Page Reporters Introduction
members
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Lufthansa Airlines
Lufthansa Airlines
The Microeconomic and
The Microeconomic and
Macroeconomic Environment of
Macroeconomic Environment of
the Company
the Company
CASE 14

To explore the company’s market exposures and its
cost vulnerabilities is taking place and is analyzed by
the application of various economic models.
The evolution of oil prices contains one of the most
important factors of industry and company’s
profitability. Therefore, a detailed analysis of the
macroeconomic impact of oil prices is performed.
Lufthansa needs to transform its business model in
order to survive future crises by optimizing its
operating costs and further growing its scale.
introduction
introduction

microeconomic
microeconomic
environment
environment

microeconomic
microeconomic
environment
environment
Lufthansa group International Airlines Group
(IAG)
Air France
(KLM Group)

microeconomic
microeconomic
environment
environment
There are more than 5000 national, international,
domestic, or other airlines in the world.
According to a report from the Organization for
Economic Co-operation and Development , there
are two key areas of competition, quality, and
price.
Price became a very important element. This led
to higher demand price elasticity and more
airlines merged or created alliances and
networks to strengthen their position against this
trend.

microeconomic
microeconomic
environment
environment
Cost Vulnerabilities
The airlines industry generally experiences high
dependance on oil/fuel, as well as high fixed and
quasi-fixed costs related with the aircrafts,
maintenance, and variable costs. Moreover, the
high operational costs lead to limited profit
margin, so in order for the airline business model
to make financial sense, it requires high topline
volumes.

macroeconomic
macroeconomic
environment
environment
The price of oil is an essential element of the
Lufthansa cost and all airlines. Only in 2019, 18%
of Lufthansa operating expenses was fuel of the
aircrafts (Lufthansa, 2019). The price levels of oil
in the past 14 years. There is a negative
correlation between the increase of oil prices and
the profitability of Lufthansa. Specifically, the
period between 2011 and 2014 when the oil prices
were the highest levels in the past 40 years,
Lufthansa reported the lowest profits, i.e. on
yearly average ~ e0.3 Bn, 80% lower.

Lufthansa is a large company with small
profitability. Their strategy is to keep
growing organically and by acquisitions, in
order to benefit from the scale that will
be created, allowing them to potentially
increase their prices and profit margin. This
business model contains a volatility risk for
a relatively small return on investment
and is driven by the following variables.
readingness
readingness
against crisis
against crisis

Lufthansa financial weaknesses were exposed in
the financial crisis of 2009; the company didn’t
manage to compete versus low-cost airlines and
the drop in their prices reduced the profit margin
and led to losses in the P/L reports. While during
the same year it completed the purchase of three
airlines in Europe. This gave the company the
opportunity to grow rapidly its scale, redesign its
business model and all this with smaller
competition.
readingness
readingness
against crisis
against crisis
In 2020, a similar situation is observed due to
COVID pandemic. The German government offered to
LH a €9 Bn bailout to support the airline.
Nevertheless, Lufthansa still needs to do some deep
changes and transform itself by optimization of the
operating costs of the company. Further growth of its
overall footprint in Europe by acquiring smaller
airlines in countries where it doesn’t have direct
access and further improvement of the quality of
their premium customers.

The analysis focuses on Lufthansa's market exposures and cost vulnerabilities,
particularly its dependence on oil prices. The aviation industry's high operational
costs and the impact of oil prices on profitability are highlighted. Lufthansa aims to
transform its business model to navigate future crises by optimizing costs and
expanding its scale. The report underscores the challenges of the airline industry's
competition in terms of quality and price, leading to mergers and alliances.
Lufthansa's business model, centered on organic growth and acquisitions, presents
volatility risks for a relatively small return on investment. The company's vulnerability
to external economic shocks is emphasized through a comparison with similar-sized
airlines, especially during challenging financial years like 2009.
conclusion
conclusion

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Members
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Scientific Research
Scientific Research
Publishing
Publishing
Case 15
Case 15

Abstract
Abstract
This paper examines the effectiveness of customer loyalty programs in the airline industry,
using Air Berlin as a case study. The main goal is to evaluate how loyalty programs impact
customer retention, engagement, and revenue. Employing a single case study approach and
drawing on relationship management and customer loyalty theories, the paper finds that
while Air Berlin has effectively implemented loyalty programs, maintaining
competitiveness is crucial for sustaining customer loyalty. The study highlights that
customers, prioritizing basic services, may reduce the influence of traditional loyalty
factors. Ultimately, the paper concludes that Air Berlin's ongoing success in customer
loyalty depends on its ability to outperform market competitors.

Introduction
Introduction
This passage discusses the multifaceted nature of customer loyalty, extending beyond
mere behavior to encompass preferences, liking, and future intentions to purchase
from the same company. It introduces the concept of customer loyalty programs,
tracing their origin to American Airlines' advantage program in 1981, which laid the
foundation for Frequent Flier Programs (FFPs) in the airline industry.
FFPs were designed to secure customer loyalty by offering incentives such as free
travel and upgraded services. The paper suggests that FFPs serve as a successful
marketing strategy in a highly competitive industry, particularly by catering to the
demands of business travelers and fostering brand loyalty. The focus then shifts to an
analysis of Air Berlin's customer loyalty program, with a specific emphasis on its FFP,
known as the Topbonus program.
The paper provides background information on Air Berlin and introduces the context of
customer loyalty programs in the airline industry. It proceeds with an empirical study
examining Air Berlin's efforts in "relationship marketing" and "customer loyalty,"
exploring their thoughts, strategies, and practices. Following this empirical study, the
paper conducts an analysis based on relevant theories to gain insights into Air Berlin's
customer loyalty initiatives and identifies potential areas for improvement.

Introduction
Introduction
This paper analyzes Air Berlin's
"Topbonus" customer loyalty program,
aiming to assess its effectiveness in
enhancing customer-service provider
relationships. Air Berlin relies
significantly on this program for
retaining customer loyalty, forming
partnerships with international airlines to
share its Topbonus program.
This paper analyzes Air Berlin's customer loyalty
program using a single case study design, drawing
on relationship management and customer loyalty
theories. The study relies on secondary information
gathered from Air Berlin's official website and their
2015 annual report.
Founded in 1978 in the United States, Air Berlin, initially focused
on providing flights as a tour operator. In 1991, it was officially
registered in Germany by Kim Lundgren and Joachim Hunold.
Over the years, Air Berlin expanded through acquisitions,
becoming the second-largest airline in Germany, serving 27.9
million people in 2015. It ranks as the 6th largest airline in Europe
by the number of flights. As of December 31, 2015, Air Berlin's
total assets amounted to 2411.5 million Euros. With 8278
employees, the airline generated 3240.3 million Euros in revenue
in 2015. Through code-sharing partnerships, including Bangkok
Airways, Hainan Airlines, S7 Airlines, and Pegasus Airlines, Air
Berlin extended its services internationally and domestically in
various countries.
Air Berlin received the "Danish Travel Award" for Best
Low-Cost Airline in 2007, 2008, and 2015. The Swiss travel
magazine "Reise Blick" named it "Airline of the Year" in
the Short-Haul Category in 2007, 2015, and 2015.
Additionally, SKYTRAX awarded Air Berlin six times,
including "Best Low-Cost Airline Europe" in 2015. The
Loyalty Award 2015 from Airline Business and Global
Flight recognized Air Berlin for product innovation,
contributing to significant customer satisfaction.
1.2 Methodology
1.3 Organizational
Background
1.4 Awards
1.1 Aim
1.5 Customer Loyalty
Programs in Airline Industry
Loyalty reward programs, found in various industries such as
airlines, credit cards, retail, and hotels, play a crucial role in
customer retention. They enhance relationships by providing
value to profitable segments and increasing switching costs.
Introduced by American Airlines in 1990 as the Frequent Flier
Program, most airlines now have their loyalty programs.
Despite their widespread adoption, these programs may not
significantly impact market structures. Less than a third of
the 180 million airline FFP members are active users, with
points often earned through activities other than ticket
purchases. The success rate for obtaining upgrades or free
tickets ranges from 37% to 70%, resulting in a relatively low
active user base. Even with customer-oriented programs, the
average airline industry load factor is around 74%, with less
than 6% of seats allocated for loyalty programs.
1.6 Frequent Flier
Program
FFPs enable airlines to provide personalized services
based on customer values and needs. Research by
Toh and Hu (1988) indicates that factors like
schedule convenience, on-time performance, low
fare, and overall service influence airline choice in
addition to FFPs. According to Chin (2002),
frequency, network coverage, seat availability,
airport access time, waiting time, boarding time, and
flight time are also significant customer
considerations.

Theoretical Framework
Theoretical Framework
Frederick Reichheld said, “Few companies think of customers as annuities”
Customer loyalty, as per M. Z. Hossain et al., signifies a consistent revenue source for companies over time,
achieved through relationship building for value creation or sales growth.
Referring to Lovelock and Wirtz (2007), Reichheld and Sasser's study shows that customer profitability increases
with the duration of their relationship with a firm across service industries. Long-term customers are more
profitable. In a competitive market, attracting new customers is challenging, emphasizing the value of prioritizing
and improving customer loyalty for sustained success.
As customers grow, expand families, and become more affluent, consolidating purchases with a single supplier
becomes profitable for companies. Experienced customers make fewer mistakes, reducing operating expenses.
Positive word-of-mouth from loyal customers serves as effective promotion. New customers benefit from
promotions, while long-term customers may pay regular or premium prices if highly satisfied. However, it's a
mistake to assume loyal customers are always more profitable, requiring companies to assess their overall value.

Air Berlin, a hybrid airline, maintains competitive pricing by offering
high and customized services, targeting business class passengers,
individuals, and holiday package organizers. With a strong network in
Germany and Europe, it expands services through Code Sharing
Partners, such as Hainan Airlines, S7 Airlines, Bangkok Thai Airways,
and Turkish private airlines. The airline focuses on continuous
modernization, selecting Airbus and designing aircraft for optimal
commercial performance. It adapts route frequencies and
implements a flexible route system to efficiently respond to customer
needs. With a mission to be "Closer to the customer," Air Berlin
provides intimate services, including free drinks and meals that can
be reserved via the menu. To enhance customer experience, Air Berlin
offers special menus, children's menus, and in-flight entertainment,
tailored to the type of flight. It provides services like free checked
baggage, accommodations for disabled passengers and families with
infants, and advanced seat selection without fees. To improve
convenience, Air Berlin offers a mobile website for customers to
access services via mobile phones. Check-in options include web
check-in, e-services, quick check-in for cardholders, and desk check-
in for those who prefer traditional methods
Air Berlin's Top Bonus Program is a unique loyalty rewards
initiative where customers accumulate miles for flights, earning
privileges and benefits. Passengers can earn status and award
miles on all Air Berlin and partner flights, redeeming them for
free flights worldwide. The program has six categories of
partners, and members can attain different status levels based
on flight distance.
Customers who accumulate 3,000 miles can order one-way
award flights, with redemption depending on the destination.
Bonus miles are valid for 36 months, while status miles offer
special privileges such as seat reservations and additional
baggage allowances. Achieving Silver or Gold status is based on
the number of flights or accumulating status miles within 12
months.
The program introduced the innovative "My Path" in 2015,
allowing members to earn double miles on preferred routes
within Europe. Recognized with the "Loyalty Award 2015," the
program has contributed significantly to Air Berlin's customer
loyalty. Membership is open to individuals aged 2 or older residing
in Germany or other participating countries, with various card
types providing different facilities. Overall, the Top Bonus
Program has attracted 1.7 million members, showcasing its
success in fostering customer loyalty.
Empirical study
Empirical study

Air Berlin's customer loyalty program demonstrates effective market
segmentation, catering to business customers, individuals, and holiday
organizers. The service plans align with Lovelock and Wirtz's (2007)
principles of targeting customers based on price and convenience. Air
Berlin successfully maintains a price gap between full-price and low-cost
airlines, providing high-value service to regular customers while
competing in international markets.
Under the Frequent Flyer Program (FFP), Air Berlin classifies customers
into Classic Card, Service Card, Silver Card, and Gold Card, addressing the
diverse needs of each segment. This approach mirrors Zeithmal et al.'s
customer pyramid, showcasing effective customer base management
through service tiering.
The My Route program, introduced in 2015, illustrates customer empathy
by offering double miles to frequent business travelers, enhancing
personal trips and fostering repeat services. This aligns with Lovelock and
Wirtz's perspective on the high frequency of repeated services being a
significant source of income for organizations. Air Berlin's focus on
customer loyalty reduces operating costs, enhances services, and
contributes to a competitive advantage.
Additionally, Air Berlin's success lies in planning services according to
market needs, such as adjusting route frequencies and adopting a flexible
route system. This responsiveness not only adds value but also reflects the
organization's ability to adapt to customer needs, fostering loyalty
according to Lovelock and Wertz (2007).
Air Berlin's loyalty program, boasting 1.7 million members, aims
for increased satisfaction and a growing customer base. The
success is evident in the recognition from the Loyalty Awards in
2015. The program, highlighted by "My Path," offers financial
and non-financial rewards, including free flights through the
Top Bonus initiative. Members receive classic, service, silver, or
gold cards based on service usage, enhancing customer
appreciation.
Structural bonds, crucial for loyalty, are emphasized through
web check-in, electronic services, and express check-in. Air
Berlin's Visa cards enable members to earn miles for purchases,
reinforcing loyalty. The six-category alliance ensures diverse
benefits, fostering loyalty with high-quality, customized
services. The innovative "My Route" program and the Double
Mileage Project enhance customer value, reduce
inconvenience, and boost competitiveness.
Empirical study
Empirical study

Analysis
Analysis
Customer empathy has driven revenue growth for Air Berlin,
particularly evident in the 2015 My Route program. This initiative,
offering double miles, benefits frequent business travelers with the
prospect of earning free tickets over time. Air Berlin recognizes that
the high frequency of repeated services from loyal customers serves
as a consistent and valuable income source, requiring minimal
promotional efforts. The airline's commitment to customer loyalty
not only reduces operating costs but also enhances capabilities,
contributes to improved services, and establishes a competitive
advantage.
Air Berlin's success is further attributed to its efficient service
planning, adapting to market needs by adjusting route frequencies
and employing a flexible route system. This strategic flexibility
enables the airline to promptly respond to short-term or immediate
customer needs, adding substantial value to its services. The
organization's ability to navigate unforeseen challenges reflects its
commitment to customer satisfaction, fostering a foundation of
loyalty as outlined by Lovelock and Wirtz (2007).
Air Berlin's customer loyalty program strategically addresses market
segmentation, focusing on business customers, individuals, and holiday
organizers. This targeted approach aligns with Lovelock and Wirtz's
principles of successful customer targeting based on price and
convenience. Air Berlin effectively maintains a competitive price gap
between full-service and low-cost airlines, enhancing profitability.
Under the Frequent Flyer Program (FFP), customers are segmented
into Classic Card, Service Card, Silver Card, and Gold Card categories.
This segmentation allows Air Berlin to cater to the diverse needs of
customers, providing high-quality and customized services. The
airline's commitment to maintaining a low-cost model while offering
limited services strengthens its competitiveness in international
markets.
The transition to the TOP Bonus Scheme further enhances Air Berlin's
popularity. This strategic approach aligns with the customer pyramid
concept, showcasing effective customer base management through
service tiering. The airline's focus on customer segmentation and
targeting, especially high-income groups, contributes to the success of
its loyalty program.

Aviation Case Study 2023 ิั ิั by CATC (Thailand)

Aviation Case Study 2023 ิั ิั by CATC (Thailand)

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