Airline Marketing Plan

Executive Summary 1. 0 Executive Summary Puddle Jumpers Airlines, Inc. is a new consumer airline in its formative stages. It is being organized to take advantage of a specific gap in the short-haul domestic travel market. The gap exists in low cost service out of Anytown, U. S. A. The gap in the availability of low cost service in and out of the Anytown hub coupled with the demand for passenger travel on selected routes from Anytown indicates that a new entrant airline could be expected to capture a significant portion of current air travel business at that hub. The management of Puddle Jumpers is experienced in airline start-ups. Previously management grew Private Jet Airlines from a single Boeing 727 to a fleet of 16 MD80 series aircraft. Revenues grew to $130 million in a two year period from 1992 through 1993. Our research and projections indicate that air travel to and from Anytown is sufficient to provide a new carrier with revenues of $110 million dollars in its first full year of operations, utilizing six aircraft and selected short-haul routes. These sales figures are based upon load factors of only 55% in year one. Second year revenues are expected to exceed $216 million dollars with additional aircraft and expanded routes. Load factors for year two are 62%. The Puddle Jumpers plan has the potential for a more rapid ramp-up than was the case with Private Jet due to the nature of the routes and the demand for travel currently in the targeted markets served. In short, the frequency of flights needed to serve Puddle Jumperss target market exceeds the demand that dictated Private Jets growth. These sales levels will produce net profit of just over $1 million in the first operational year and $21. 4 million dollars in flight year two. Profits in year one will be 1% of sales and will improve to 10% of sales with the economies gained in year two. The over-all operational long term profit target will be 16% of sales as net profit in years three, four, and five. The companys long term plan is part of the due diligence package. The first operational year is actually fiscal year two in this plan. The first year of formative operations will burn cash until revenue can commence. This is due to the organizational and regulatory obligations of a new air carrier. Investment activity is needed to handle the expenses of this phase of the business. The following chart illustrates the over-all highlights of our business plan over the first three years. Gross Margin here is approximately 87% of sales since the only costs included in this calculation are travel agent commissions, credit card discounts, and federal excise taxes. Travel agent commissions are calculated on 30% of sales even though management feels the actual number will not exceed 10% of sales. NOTE: For display purposes in this sample plan, numerical values in tables and charts are shown in thousands (000s). Highlights 1. 1 Objectives The Company has the following objectives: 1. To obtain required D. O. T. and F. A. A. certifications on or before March 1, 1997. 2. To commence revenue service on or before July 1, 1997. 3. To raise sufficient seed and bridge capital in a timely fashion to financially enable these objectives. 4. To commence operations with two McDonnell-Douglas MD-80 series aircraft in month one, four by end of month four, and six by end of month six. 5. To add one aircraft per month during year two for a total of 18 at year two end. 1. 2 Mission Puddle Jumpers International Airlines, Inc. has a mission to provide safe, efficient, low-cost consumer air travel service. Our service will emphasize safety as its highest priority. We will operate the newest and best maintained aircraft available. We will never skimp on maintenance in any fashion whatsoever. We will strive to operate our flights on time. We will provide friendly and courteous no frill service. 1. 3 Keys to Success The keys to success are: Obtaining the required governmental approvals. Securing financing. Experienced management. (Already in place). Marketing; either dealing with channel problems and barriers to entry; or solving problems with major advertising and promotion budgets. Targeted market share must be achieved even amidst expected competition. Product quality. Always with safety foremost. Services delivered on time, costs controlled, marketing budgets managed. There is a temptation to fix on growth at the expense of profits. Also, rapid growth will be curtailed in order to keep maintenance standards both strict and measurable. Cost control. The over-all cost per ASM (available seat mile) is pegged at 7. 0 cents or less in 1996 dollars. This ASM factor places Puddle Jumpers in a grouping of the lowest four in the airline industry within the short-haul market. (US Air, the dominate carrier in the Anytown market, averages 12. 0 cents per ASM by comparison). The only three airlines with lower operating costs also operate older and less reliable equipment, and even then the lowest short-haul cost in the airline industry is currently Southwest at 6. 43 cents per ASM. Company Summary 2. 0 Company Summary Puddle Jumpers International Airlines is being formed in July, 1996 as a South State Corporation. Its offices will be in Anytown, Georgia. The founder of Puddle Jumpers is Kenneth D. Smith. Mr. Smith has extensive experience in consumer aviation. His bio as well as the backgrounds of all the members of Puddle Jumperss management team are enclosed herein. 2. 1 Company Ownership Puddle Jumpers International Airlines, Inc. will authorize 20,000,000 shares of common stock. 1,000,000 shares are to be set aside as founders stock to be divided among key management personnel. It is also expected that management stock options will be made available to key management personnel after operations commence. It is expected that founders stock plus option stock will not total more than 15% of authorized shares. Initial seed capital is to be attracted via a convertible debenture sold by Private Placement. This round of funding will have premium conversion privileges vs. later rounds and bridge capital.

The case of Mrs. Mendez Essay Example | Topics and Well Written Essays - 1250 words

The case of Mrs. Mendez - Essay Example Mendez’s case. Her physical condition is deteriorating, which affects her psychologically. Her children will not let her talk about her impending death, which creates an imbalance in her psychological condition and she copes with this by withdrawing. Drake (2012) presents an adaptation model to understand how cancer patients should be taken care of as they are going through the process of living and dying. Some of the things that would be important to know, according to this scale include in this model are: why her shortness of breath is affecting her intake of fluids and food. Her physical appearance may be important to her as she lays in her bed, is better, which can effect QOL for many patients. There is no mention of church for her, though she â€Å"seems† to be religious, or at least superstitious. This should be explored. Drake (2012) states that nurses must understand early whether their patients are feeling depressed and help them receive treatment for it. Palli ative care will need to be discussed and end of life arrangements. 1. Discuss how a nurse can foster hope in this scenario? When and how can the concepts of palliative care be introduced in the scenario? How can you explain the differences between Palliative care and Hospice care? Fostering hope can be difficult in a situation with the Mendez family, because they are not willing to talk about the impending death of their mother. They are also not open to helping her prepare for death. Butt (2011) states that hope is a multidimensional and it changes as the terminally ill patient continues through their illness. Butt (2011) also states that hope is a factor that creates a better quality of life for the individual. In this situation, more has to be known about the family. Mrs. Mendez seems to be losing hope because the family cannot talk about the impending death. It is important to help the patient feel hopeful, despite what is happening, because it keeps them from being depressed or feeling despair (Turco, 1998). A nurse can foster hope by maintaining a positive relationship with the patient, helping the patient see humor whenever they can, touching the patient appropriately and reassuring them, and helping them control pain (Turco, 1998). In the Mendez family, the nurse can foster hope by providing good care for Mrs. Mendez, which includes making sure that she is comfortable as her pain increases. The nurse may also need to intervene for Mrs. Mendez by contacting the primary care physician and describing the situation as it stands now. According to Tyson (2001) the Hippocratic Oath states that the individual healthcare provider will consult with others who are more expert in situations when necessary, to help their clients. In this situation, Mrs. Mendez needs help from the nurse to create the resources needed for the family to thrive, and for Mrs. Mendez to have the quality of life that she needs as she moves toward death. Palliative care was important to ta lk about as soon as Mrs. Mendez refused chemotherapy. She and her family must understand Mrs. Mendez’s needs as her health decreases. The family must face the inevitable and they may need to see a therapist or a priest or minister to deal with the situation. In a study done by Hermann and Looney (2011), the authors found that patients need a thorough understanding of their symptoms and what to expect as becomes more debilitating.