Professional Development II
Casey Foo Don Lin Karen Lim Kim Hong Lawrence Lim
The airline industry is not young, and if it is not because of budget airlines who revolutionized how the industry works in terms of pricing strategies and marketing, it is honestly quite boring to ﬂy! Since the September 11 attacks, airports around the world, including Australia has stepped up security measures extensively, which adds to the ʻhecticʼ experience of air travel. This is exactly the phenomenon what our proposal, called the WonderFlight program intends to address, by bringing our customersʼ ﬂying experience to the next level. WonderFlight ...view middle of the document...
Virgin Blue is in a great position to invest in this innovative business idea as it now faces stiff competition from other airlines such as JetStar and most currently, Tiger Airways. Based on the appraisal of external environment (SWOT analysis), we acknowledge the possible threats that would hinder our proposal such as possible criticism (mainly exploitation of ﬂight attendants). Therefore, our proposal also includes several measures to consider the interests and well being of our ﬂight attendants. Financially, this project costs $284,500 as a start-up. The return on investment on this project is highly desirable. For a start, the projection of our income statement for the second and third month of implementation yields a net proﬁt of $267,300 and $237,128 respectively. On a yearly basis, net proﬁt for the ﬁrst year is expected to be at over $1.4m; while the second and third yearʼs net proﬁt increases to $2.3m and $3.2m respectively. On average, our proposal yields a proﬁt margin of 27%. With a much improved cash ﬂow in the last ﬁnancial period, supporting the investment of this proposal can help bring the name of the airline to the forefront through word-of-mouth and reviewers. Besides earning proﬁts, the proposal also aims to contribute a total of $9.8m to the RedJet Foundation and $1.6m to the WWF over the course of three years. This great deal of Virgin Blueʼs corporate social responsibility will serve as a desirable corporate image for the company.
1. Overview of Business Concept
The name of our business proposal is WonderFlight. As the name would suggest, the project aims to bring the ﬂying experience of our customers to the next level by introducing a series of innovative ʻthemed ﬂightsʼ as the new inﬂight entertaining program. This interactive program between our ﬂight attendants and passengers is inspired by Cebu Paciﬁc Airlineʼs attempt in giving in-ﬂight safety demonstration a twist by dancing to a Lady Gaga hit- ʻJust Danceʼ in 2010. Our proposal intends to expand the initial idea to a broader activity level by incorporating the idea to the entire ﬂight experience. Essentially, we are trying to bring fun back into the air. Our enhancement will bring economic beneﬁt by proﬁt as well as contributions to the community. It comprises of several parts as illustrated below: 1.1 Themed Flights To begin with, WonderFlight will start with the “Lady Gaga Theme”. Prior to the actual ﬂight, passengers will be informed which ﬂights are WonderFlights and they are encouraged to participate by dressing up according to the theme while processing their bookings online. An additional A$10.00 is applicable to all WonderFlights where A$5.00 will be transferred to Virgin Blueʼs Red Jet Foundation for charity purposes. During the ﬂight, our ﬂight attendants (6 ﬂight attendants) will dress up according to the theme and perform on the aisles. i.e. dancing to the inﬂight safety features, as well as commencing the usual service in their costumes. The...