CASE STUDY OF ROYAL AIRLINES

Submitted by:
Flora Luz G. Akut
Student
Submitted to:
Mr. Roberto P. Daba
Instructor
Case Study: Royal Airlines

Royal Airlines is a local budget airline company. With 22 small fleets

serving domestic routes in the country, the airline company continues to enjoy

open sky privileges. Compared to regular airlines, Royal Airlines charges

lower rates as typical of budget airlines. No food is served on board unless

one desires to order and pay for it.

The goal of Royal Airlines is to attract as many travelers as possible,

thinking that volume or higher seat rate can compensate for the low prices

being charged. So far, the company has gone into aggressive marketing.

Promotions are printed in leading daily newspapers and website booking has

been highly encouraged. In fact, Royal Airlines has its own membership club.

It is their effective way of continuously touching base with its customers while

informing them of great travel discounts. Patronized by many customers,

Royal Airlines has been relatively successful. The seats are almost always

filled up; their pilots are efficient and very capable; their stewards and

stewardesses are friendly and service-oriented; the planes are clean and in

good working conditions.

However, Royal Airlines has significant customer problem. In many

instances, the planes of Royal Airlines are late in taking off and in landing.

This has created great dissatisfaction among its traveling public.

As the Marketing Manager, how do you intend to solve this problem?

Recommend strategies to tackle the issue by preparing an action plan.

Title of the Case

Royal Airlines

Time Context

December 2023

Perspective

Marketing Manager

Central Issue

Royal Airlines has significant customer problem, in many instances, the

planes of Royal Airlines are late in taking off and landing.

Statement of Objectives

1. To create a solution of late taking off and landing of the planes.

2. To address the reason why the central issue is happening.

Areas of Consideration

Strength

• It has his own membership club.

• The pilots and flight attendants are friendly and service oriented.
• The planes are all good condition.

Opportunities

• It offers lower prices.

• It serves domestic routes in the country.

• The seats are always filled up with customers.

 Weaknesses
• The planes are late in taking-off and landing.

• No food is served while on board unless someone desires to order and

pay for it.
Threats

 It has created great dissatisfaction and complains among its customer.

Alternative Courses of Action

1. Coordinated flight time scheduling.

2. Planes maintenance check-up.

3. Give discounts when delayed flights and arrival.

4. Trainings and workshop for pilots and flight attendants.

Decision Matrix

Alternatives

Coordinated Planes Give Trainings

Variables
flight time maintenance discounts and
scheduling check-up when workshop
delayed for pilots
flights and flight
attendants
Risks 4 4 3 4
Costs 4 1 1 4
Benefits 5 5 5 4
Ease of 5 4 2 3
implementatio
n
Total 18 (highest) 14 11 15

In assessing each alternative course of action, a rating scale from 1 to 5

is used. Five being the highest and one the lowest.

a. For risks, 5 is the least risky and 1 is the most risky.

b. For costs, 5 is the least costly and 1 the most costly.
c. For benefits, 5 is the most beneficial and 1 is the least beneficial.
d. For ease of implementation, 5 is the easiest to implement and 1 is the
most difficult to implement.

Conclusion

The Royal Airlines has significant customer problem. In many instances

the planes of Royal Airlines are late in taking off and in landing.

Among the four (4) alternatives the coordinated flight time scheduling
should be given the top priority to address the late taking off and landing of
planes.

Recommendation

Royal Airlines is known as a local budget airline focusing in maximizing

seat occupancy and company revenue.

As the Marketing Manager, scheduling the time in the company will help
to regain the customers loyalty rather than receiving customers complain.
Additionally, trainings will help them avoid miscommunication between crew
members and ground staff, inadequate teamwork among crew members,
leading to longer turnaround times. Trainings will help them provide new
knowledge on many things. It offers a large amount of benefits such as being
true to what they say, being a person with the knowledge on how to fix things
at any moment. Lastly, they should know on how to handle such things that
 will not only help optimize operations but also lead to better decision-making
and resource allocation.

Action Plan

Activities Objectives Division Persons Costs Time

Responsible
Training on target To execute Aircraft Air Traffic Estimated Monthly
time of taking-off proper ways Control Controller ₱ 20,000
and landing of to avoid flight Division
aircraft constraints

Aircraft To ensure Aircraft Aircraft Estimated Monthly

maintenance the safety Maintenanc Maintenance ₱ 25,000
checking and security e Division Technician
of the
aircraft and
its
passenger
Coordinated flight time scheduling.

Gantt Chart Year 2024

Activities Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Training on
target time of
taking-off and x x x x x x x x x x x x
landing of
aircraft
 Aircraft
maintenance x x x x x x x x x x x x
checking