The document outlines details of a business strategy for an airline, including its group members, strategies to focus on corporate segments and long-distance flights while providing all classes at low fares. It also includes analyses of the airline industry using Porter's 5 Forces and PEST frameworks, a SWOT analysis of the company, and recommendations to aggressively expand in Asia and South America while increasing its aircraft fleet and forming strategic alliances.

1. Group Members
o Divyani (10072)
o Ishani ()
oGagandeep (10073)
o Bhargav (10068)

2. Strategy
• To focus on corporate segment
• Long distance flights
• Provide all classes – at lowest faresComparative Flight Revenues for VAA and
BA – 2003
• Tailor made service
• Branson Brand

4. Porter’s 5 Forces
(Industry Analysis)
Threat of Potential
Entrants (High)
-Alliance of other airlines
- Establishment of a new
airline company
Competitive Rivalry (High)
-BA & new airline alliance
Power of Suppliers (High) (smaller airlines grouping Power of Buyers (High)
-Fuel suppliers together) -Competitive prices from
- Manufacturers: Airbus & - Fly Emirates (recently competitors
Boeing signed the contract for 90 - New Airline
A380’s)
Threat of Substitutes (Low)
- No threats for long-haul
routes

5. SWOT Analysis
• Most attractive • Small player
Cabin & Crew • Small fleet
• Unique informal
and Cool
treatment
• Profit making
airline
Strength Weekness
Opportunity Threats
• Bio fuel • Recession
• Brand Value • Terrorism
• Technology

6. PEST Analysis
• Approvals to • Rising fuel cost
expand & • taxes
Government
relations
Political Economical
Social Technological
• Fall in number of • Use of bio fuel
business travelers
• Fall in tourism
industry

7. Mission and Vision
Vision:
• Forgetting what made you famous
Mission:
• Mission 1: To grow a profitable airline
• Mission 2: Where people love to fly
• Mission 3: And where people love to work

8. Comparative Flight Revenues for VAA and
BA - 2003
Upper class 50 seats at $ 1,195 = $ 59,750 47 %
• VAA
Mid class 38 seats at $ 473 = $ 17,974 14 %
Economy 271 seats at $ 185 = $ 127, 859 39 %
Total Revenues = $ 127, 859
• BA
First Class 18 seats at $ = $ 34, 830 15 %
1,935
Club World 70 seats at $ = $ 74,270 32 %
1,061
World Traveller 282 seats at $ $ = $ 125,490 53 %
445
Total Revenues = $ 234, 590

9. Recommendations
• Aggressive expansion in Asia, South America
• Increase the aircraft fleet
• Form a strategic alliance with other airlines
• Maintain relationships with Upper Class customers
• Globalize the Virgin brand further

10. Losing My Virginity
• "A brand name that is known internationally for innovation, quality
and a sense of fun - this is what we have always aspired to with Virgin.“
• Mine’s Bigger than Yours
• 4 Engines 4 Long-Haul
• No way BA/AA
• Still Red Hot for 25 Years