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Risk Management Bachelor - Essay Example

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Summary to essay on topic "Risk Management Bachelor Essay"
The European Airline industry is a dynamic industry that changes its trends in accordance to general European economy. The over all air transport market in Europe is expected to grow substantially in the comings years. The international air transport association along with few leading bodies like AEA and ATI estimate that number of international scheduled passengers traveling between countries in Europe will grow from 233 million in 1999 to 302 million in 2005, reflecting an annual growth rate of 4.9%…
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Download file "Risk Management Bachelor Essay" to see previous pages... (European Airline industry-strategies for the new Millenium-sky Tech Solutions accessed from the website www.skytechsolutions.com and Global Market Forecast, The future of flying, 2006-2025, (2006), November, Accessed from the website www.airbus.com). Now it has been evident that aviation market in Europe has been increasing especially for low-cost carriers and therefore our airlines Blue Star will be started as soon as possible to take the advantage of booming air travel market.
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The proposed airlines "Blue Star" is willing to start operations from Vienna (Austria), whose location is more central to Eastern Europe and have the potential to cover Baltic nations (Estonia, Latvia & Lithuania), Poland, Czech & Slovakia, Hungary, Italy, Croatia, Germany etc. The next important fact that founding partners of the Airlines are from three nationalities and around 45 years of age with 15 years of experience in managing an airlines which will prove successful in the long run. Another important fact that airline is starting with 10 same size/carrying capacity and most probably the same type of planes. It becomes easy to handle / upkeep the same type of plans for pilots and other staffs. It any reduce turnaround time and reduce maintenance expenses and training costs. An important fact in starting Blue star is that it is leasing those airports and concentrating on those destinations which are not expensive due to their landing fee or heavy traffic and where national carriers make competition more intense. The most important fact that airlines proposed that its starting capital of $ 100 million consists of only 50% from borrowing in which bank borrowing/short term is only $ 25 million and rest 25% is through long-term bonds. By adopting this method, airline ensures that instant debt-service has to be kept at minimum. These are the above five important facts, which Blue star kept in its mind to start with and will prove to be successful in the long run.
The next important step is to choose the first 10 destinations, where the passengers' flow is maximum and risk of bad weather; security or political stability is at minimum. In Europe Most of the airlines are trying to operate in the east. Due to integration of Europe, Vienna is the place / hub for most of the airlines in central Europe joining West Europe and Eastern Europe. The Baltic nations, Russia, Ukraine and Belarus are the new found destinations where low-cost airlines trying to reach out. Most of the passengers from Western Europe are (Businessman) moving in the Eastern Europe market exploring new opportunities where as persons living in Eastern Europe moving Western Europe to find new job oppourtunities. So Blue star has to choose its all the ten destinations keeping in mind the passenger's availability. Three Baltic nations are at first place. They have to start with three airports namely Parnu in the Estonia, Liepaja in Latvia and Kaunas in Lithuania. In choosing the three airports we had not taken the respective countries main airports i.e. Tallinum, Riga and vilnius due to airline policy to lease those airports have low leasing costs and potential competition from major carriers as well as more waiting time. ...Download file "Risk Management Bachelor Essay" to see next pagesRead More
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