Air Philippines: A strategic study simplifying the journey

Date of Publication

2000

Document Type

Oral Comprehensive Exam

Degree Name

Master of Business Administration

Subject Categories

Business Administration, Management, and Operations

College

Ramon V. Del Rosario College of Business

Department/Unit

Decision Sciences and Innovation

Abstract/Summary

Development and transport have a symbiotic relationship. On one hand, the demand for transport is both the cause and effect of development. Conversely, transport is directly affected by any problems in the economy.

This situation is vividly illustrated in the Philippine air transport industry. From the early 1990s up to 1996, we have seen dramatic growth in both passenger and cargo volumes. With the onset of the Asian-wide economic crisis in 1997, the industry experienced a similarly enormous retraction in size.

The second largest player in the domestic air travel market is Air Philippines. Air Philippines commenced operations in 1995 as a domestic air carrier. It is one of the fastest growing airline companies in the Philippines today, with 51 % annual growth from 1998 to 1999.

This research paper seeks to address the following problem:

Problem: What strategies should Air Philippines employ to further enhance revenue growth and sustain competitive edge?

Objectives: 1 . Further enhance revenue growth

2. Sustain competitive advantage

After analyzing the airline against other players in financial, operational and strategic terms, we recommend the following approach:

1. Pro-active infrastructure development

2. Enhancement of the Airline imaging/branding

3. Aggressive marketing programs for increased passenger loyalty

4. Promotion of Quality Management

s. Focus on development of Cargo Business

6. Human Resource Development for increased productivity

7. Strengthening of Corporate Identity

8. Upgrade of services to profitable routes and focus on unprofitable flight segments

9. Strengthening of Service Standards

10. Alliances

11. Development of secondary hubs and other international gateways

Most of these strategies will translate into incessant action plans. The airline stands to benefit most from iterative improvements in its processes and from the organization of inter-departmental teams. With these infrastructures in place, we envisage continued spectacular growth in the airline's revenues and in profit. These projected financial results, together with sustained competitive edge, provide a very promising future for Air Philippines.

Abstract Format

html

Language

English

Format

Print

Accession Number

OCE0275

Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

66 leaves

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