Module: TH60123E – Air Route Planning
Assessment 2: Individual Written Report – Further Guidance
Assessment Title: European Short-haul Route Profitability
From the data that you have collected or from the data collected, select 2 leisure routes and 2 business routes for which there is good quality data.
Step Two:
Using Microsoft Excel, produce a scatter graph (with lines) of the Ticket Price against the Price Collection Date. You should have four graphs for the four routes. Each graph should contain multiple lines for each of the airlines operating that route.
Step Three:
Annotate the graphs to highlight any interesting features, patterns or trends. You can do this by inserting a text box and adding an arrow.
Step Four:
Conduct an analysis of the data to identify patterns and trends in the data and to identify any observable revenue management strategies used by the airlines. For each of the routes you should try to answer the following questions:
• What is the overall trend in ticket price? Are ticket prices cheaper in advance or cheaper close to the departure date?
• When is the cheapest period to book tickets. (e.g. 1 week before departure, 30 days before departure etc.)
• How do the price trends and fluctuations for leisure routes compare to the business routes?
• Is there a difference in the price trends and fluctuations for low-cost carriers compared to full-service network carriers? If so, what are the differences?
• Are there variations in average ticket prices by day of the week? If so, explain the patterns and trends.
Please remember that you must explain the price variations and not describe the variations.
Step Five:
For any one easy Jet flight, estimate the total revenue from the flight and the total operational cost. Estimate the total profit/loss for the route. Your estimate of operational cost should be as accurate as possible and the method clearly explained. Explain how easy Jet can make the route more profitable.
To estimate the operating cost, a table of data from the 2019 easy Jet Financial Report is available on Blackboard. You can find the operating cost table under: ATTACHED
Note that the cost of fuel is not included in the report and you will need to estimate fuel costs based on flight time, using other methods.
Step Six:
• Please make sure you check the report to correct spelling, punctuation and grammar.
• Ensure graphs are labelled as Figures and include a figure caption.
• Ensure you have referenced any information sources used in the report.
• Ensure that the appendix section contains a spreadsheet of the data you have collected.
You will be awarded marks according to following breakdown:
Data collection effort 10%
Presentation of graphs, charts and tables 20%
Analysis of revenue management strategies by route and airline 30%
easyJet revenue, cost and profitability analysis 25%
Report presentation, structure, spelling, grammar and punctuation 15%
