WEST-EAST LINK

West-East Link is a proposed airline company that seeks to exploit the growing economic boom of Eastern Europe region by providing cost effective passenger and cargo flights. The objective is to be high-quality regional airline linking Western and Eastern Europe with a rapidly growing markets of Eastern Europe and linking these destinations with Western Europe countries and other trans-Atlantic destinations. West-East Link, Inc will authorize 30,000,000 common stocks to raise capital. 15% of these stocks will be set aside as founders’ stock that will be divided among the key owners. Its strategic position will be defined by the provision of high-quality services and employment cost-effective, up-to-date regional aircraft sized to meet the market needs leading to higher load factors, reduced costs, and improved efficiency. The company will employ highly experienced and professional management team that combines vision, realism, financial strength, solid knowledge of the aviation industry and technology to drive a committed team of employees. In addition the use of advanced information technology to reduce staffing-related costs and operational costs, expand the potential market base and enhance customer convenience and satisfaction. West-East Link will employ vibrant, intelligent and progressive marketing strategies that will position the company as the pride of the region. The company will focus on the safety of passengers through highly trained, dedicated and professional personnel who will help exploit the benefits of technology.

Business Overview

West-East Link is a proposed airline company that seeks to exploit the growing economic boom of Eastern Europe region by providing cost effective passenger and cargo flights. The primary objectives West-East Link is to establish a high-quality regional airline linking Western and Eastern Europe with a rapidly growing markets of Eastern Europe and linking these destinations with Western Europe countries and other trans-Atlantic destinations.

West-East Link mission is to serve the expansive region linking Western and Eastern Europe countries through high-quality services at a profitable rate by identifying and serving key routes and cities. West-East Link will utilize the latest aviation technology, effective designing, efficient systems and effective internal controls. West-East Link aims at ensuring the highest level of services, operation efficiency and safety based on the needs, comfort and convenient of clients. The combination of technology, service orientation and quality control will help keep the cost at minimal and maximize customer satisfaction and the profitability of the firm. West-East Link will be founded on a strong customer satisfaction culture and excellent brand reputations that will enable West-East Link achieve its long-term goal of establishing a loyal brand in the region.

West-East Link, Inc will authorize 30,000,000 common stocks to raise capital. 15% of these stocks will be set aside as founders’ stock that will be divided among the key owners. The initial investment will be attracted through convertible debentures that will be sold through private placement. West-East Link will precede a public offering prior to starting revenue services. West-East Link will obtain its aircrafts on a “dry lease” from one of the leading aircraft lessors at the cost of $ 170,000 per month.
Strategic position

The  vital and differentiating characteristics that will drive the success of the new carrier include:

1.      The provision of high-quality services on routes and in markets that are currently underserved or unserved by the existing carriers thus setting both a new trend and a new pace in air service t and within the Southeastern Europe region

2.      Employment cost-effective, up-to-date regional aircraft sized to meet the market needs leading to higher load factors, reduced costs, improved efficiency and flexibility, greater passenger comfort and satisfaction, and higher net profit. The aircraft will be outfitted with modern aviation technologies and navigational equipment that will help ensure the highest level of reliability, safety and customer satisfaction.

3.      The use o the latest electronic and informational technologies in its sales and marketing strategies, ticketing and check-in, reservations, scheduling and resource planning, cargo planning, and operational oversight. In addition, the company will use various strategies to reduce staff requirements while providing user-friendly and greatly enhanced by, and convenience to the customers. These techniques include internet marketing, electronic ticketing, check-in, cargo and baggage tracking and customer services.

4.      The establishment and implementation of cooperations, associations, and partnership with other multinationals and reputable airline brand in the region and globally. As such, offer an extensive range of connections, through fares, frequent-flyer mileage sharing, and other clients advantage through interline arrangements.

External competition

The European airline industry I highly dynamic, competitive and is undergoing significant changes. The traditional network carriers such as British Airways and Air France have a long history. They are state-owned and offer high-quality products and superior services to an extensive route network. Most of the carriers are based on “Hub & Spoke” system which link international and national catchments by serving primary and secondary airports. These companies focus on offering unique and appealing products, in order to differentiate from competitors and establish preference with customers. These traditional carriers differentiate their product and services by offering frequent travel programs, differentiated lounges, superior seats and F&B services. There is also an emergence of low-cost carriers such as Ryanair, which offer low-cost levels with inexpensive fares and services reduced to the main purpose of the transportation. These low-cost carriers remove complexities from operation thus achieving a high unit cost advantage. The core business model differences include the selection of attractive markets and the ability to stimulate new passenger demands. As such, low-cost carriers occupy a high market share due to their cost advantage and their lower ticket process, which allow them to access the new market and generate traffic. The strong market position of low-cost carriers in the region is reflected by the size of the major airline companies in the region. Two of the largest airlines by passenger numbers are low-cost carriers. In total, 36 network carriers and 14 low-cost carriers operate in the market.

Critical success factors

A number of factors will enable West-East Link enter and conquer the market. First, the company will employ highly experienced and professional management team that combines vision, realism, financial strength, solid knowledge of the aviation industry and technology to drive a committed team of employees.

Secondly, West-East Link will employ vibrant, intelligent and progressive marketing strategies that will position the company as the pride of the region. The company will focus on the safety of passengers through highly trained, dedicated and professional personnel who will help exploit the benefits of technology.

Third, the identification of high business routes through effective market research based on business intelligence and big data.

Fourth, the use of advanced information technology to reduce staffing-related costs and operational costs, expand the potential market base and enhance customer convenience and satisfaction.

The company will also leverage various cooperation strategies at different levels of business to ensure its captures market information. It will establish a high level of operation control and quality control to ensure the goals are aligned with the marketing commitment to the company. West-East Link will maintain the flexibility that enables the airline to respond and adapt to dynamic market conditions and opportunities. It will seek to identify, develop and to exploit in cost-effective ways new markets, market concepts and expanding sales. West-East Link will combine the core aviation business with numerous ancillary marketing concepts and activities and ground operations that supplement the aviation aspects of the business such as charter-travel program and cargo handling facilities and services.
West-East Strategy

The foundation of the company is to capture the West and Eastern Europe market by offering high-quality products and services at low process. West-East Link leverage technology and professionalism to reduce cost and to offer high-quality services at greater convenience.
Marketing plan

West-Link will dedicate a large part of its revenue toward marketing and advertising within its first three years of operation. A competent and vibrant marketing team is essential for the survival of the company. The marketing mix will include offering high-quality services at relatively low prices.
Product

West-East Link will offer flight to passengers and cargo at relatively low prices. The company will provide direct flights within major cities in East and West Europe countries. The focus is to ensure the flights are on time as possible, and customers will receive excellent services. As such, West-East Link will dedicate resources toward creating loyal customers of an effective low-cost airline. The aim will be to overcome most of the challenges associated with low-cost carriers by leveraging technology and qualified professionals and establishing effective internal controls.
Price

Airlines lease terminals, ticket counters, gates and maintenance facilities from airports. However, the majority of airline cost comes from fuel, labor, and maintenance. The typical airline spending.

West-East Link needs to maximize operations and reduce costs. As such, it is vital to ensure all flights are full and the turnaround time at the airports need to highly effective. In order to competitive in this mature industry, West-East Link needs to price its products and services competitively. The company will utilize technologies and techniques such as Revenue Passenger-Miles (RPM) and Available Seat-Mile to stimulate maximum seat occupation. It will use the load factor to maximize the capacity of the carriers. In addition, West-Link will use modern and sophisticated computer pricing techniques that will analyze price sales and offer different prices at different times depending on the time and the popularity of the a specific flight. West-East Link will use a number of vendors to sell its tickets in the region. They include internet (direct sale through West-East Link websites), internet (3rd party), call centers, airport ticket counters, cooperate sales and travel agents.

The core strategy is to offer all customers good services to destinations of their choice at fair and predictable prices. However, competition on the basis of prices alone is not sustainable due to the high number of low-cost carriers in the region. As such, our distinguishing trait will be fairness, clarity of the pricing strategy and rational fare base coupled with better services and convenience. The company will use an effective electronic reservation and ticketing to overcome the challenge of overbooking.
Promotion

West-East Link will greatly utilize internet marketing strategies. Special efforts will be made from the onset to develop a highly functional and user-friendly website for the online information, e-ticketing, and reservations. As such, search engine optimization is crucial to its ecommerce strategy. In addition, internet marketing and traditional non-internet marketing will boost the sales of the company. The company will use the Google’s pay per click program and the Google Ad Words to maximize online search. In addition, it will use the Gmail advertising to draw keywords from emails and then advertise its services. West-East Link will use the social media marketing to capture the young population. Social sites such as MySpace, Facebook and Twitter will be crucial to the expansion of the company. The company will seek to build a network of trendsetters and opinion leaders to create a cycle of referral and also gain insight into the market.

A comprehensive analysis of the market and segmentation require specific passenger and destination survey. However, a preliminary analysis of the market indicates the following segmentation of the market.
Business -20%
Government and international organizations 5%
Regional resident personal and leisure travelers -20%
Diaspora personal and leisure travelers -10%
Seasonal holiday travelers 15%
Sales strategy

West-East Link’s strategy stems from its comprehensive marketing approach and core value. The company will leverage mass marketing with a personal touch to market its products. The company will maximize its professional employees and excellent customer service to position the company as the customer-oriented company. Customers will be encouraged to use the convenient book system and reduce travel agents who are often associated with additional fees and complexity of the booking or e-ticketing process. The technology-based reservations, e-ticketing, and e-check-in will help reduce staff requirements. The company will also have regional and specialized sales and marketing managers who will focus on targeting specific clients that have the potential to offer corporate or group travel.
Organization structure and culture

The company envisions a horizontal structure with very few vertical hierarchies to promote communicates, improve collaboration and reduce costs. In an industry where safety and accountability are critical, the company will strengthen structures and personnel in these areas. In addition, the entire organization will be structured around high flexibility, the high level of accountability and responsibility to cut costs.

Apart from the cost of acquiring aircrafts, operational costs, and fuel costs, personnel costs constitute the largest cost factors in the airline industry. In addition, the airline personnel will play a critical role in the success of the airline company. As such, West-East Link needs an effective personnel or human resource strategy. The human resource strategy emphasizes hiring and maintaining high qualified and motivated employees while leveraging technology to build a customer-focused culture. As such, staffing will incline toward departments such as information technology, control processes, flight safety and maintenance, and employee motivation. The use of cost-effective technologies will reduce personnel in the marketing and sales departments and personnel management.
Organization culture

West-East Link will seek to build a culture of quality, cost-effectiveness, customer orientation and control measures. These values will mature, refine and strengthen as the company grows. The early values of the company will exert influence over its future values. As such, the founders need to lay the ground for the values of the company. The organization culture will be maintained through an effective attraction-selection-attrition process. First, the company will position itself as an equal employer who targets talent and promote innovation. The company will offer competitive reward structure that will aim at creating satisfied and committed employees who share the organization values. Secondly, the company will invest in and support the continuous development of employees. Employees will have chances to develop professionally and personally.

Carolyn Morgan is the author of this paper. A senior editor at MeldaResearch.Com in college research paper services. If you need a similar paper you can place your order from best medical essay service.