Introduction
The success of the start-up under consideration significantly depends on the proper strategic planning and management. They include a variety of elements that Gold Airways should cover to become profitable. The primary controls include the specifics of airline operations, pricing strategies, inventory/yield management, operating costs, and the measurement plan. Hence, the consideration of the combination of the mentioned elements will contribute to the airline company’s efficiency and ensure its sustainable development.
Airline Operations
The principal controls relate to the daily operations of Gold Airways. Their importance is defined by a dynamic market that requires a certain degree of flexibility of the company to deal with shifts in customer preferences and the environment (Claussen et al., 2018). Thus, to ensure the efficient work of Gold Airways, it is necessary to establish the procedures of initiating, conducting, and terminating flights for the mutual benefit of customers and managers. This need can be addressed by creating a flexible system allowing to readjust to the changing demand on flights.
Pricing Strategies
Another type of controls is the establishment of pricing strategies for Gold Airways. Since the demand for the company’s flights is expected to be sporadic, it would be reasonable to provide seasonal discounts, especially for the winter (Wen & Chen, 2017). Moreover, the strategy can be complemented by creating the company’s website for online ticket purchases (Wen & Chen, 2017). In this way, it would add to the flexibility of the low-cost airline company.
Inventory/Yield Management
The efficient inventory and yield management will add to the profits of Gold Airways in the long run. They will incorporate such elements as fully-booking flights to reduce the costs and the creation of several sales channels across Russia (Banerjee et al., 2019). This strategy of controls will make the airline company a more attractive option for customers and improve its image for sustainable development in the future.
Operating Costs
Another essential element of Gold Airways management relates to the operating costs of the company. They will be reduced through the establishment of optimal fuel consumption and the creation of appropriate working conditions for the personnel (Claussen et al., 2018). These components of the overall strategy will allow to maintain the balance between the needs of all stakeholders, including passengers, flight crews, and other employees.
Measurement Plan
The implementation of the proposed strategy for Gold Airways should be measured over time. This task will address such aspects as on-time departures and arrivals, the state of aircraft, and various factors affecting the daily operations of the airline company (Claussen et al., 2018). Such a management plan, including all the possible elements related to ultimate profits, will ensure the correspondence of the passenger-carrier airline to the initial vision.
Summary of the Mock Airline’s Control Elements
The control elements that will allow establishing the proper work of Gold Airways address all possible aspects of its activity. They include flexibility in operations and the focus on customers that contribute to mutual benefits, readjustment of prices according to the demand, fully-booking flights, appropriate working conditions for employees, and optimal fuel consumption. The combination of the specified elements will contribute to the efficiency and, therefore, profits of the airline company.
Conclusion
To sum up, the start-up’s success is directly connected to its managers’ initial intentions to ensure the correspondence of all control elements to their vision. Hence, the consideration of daily operations, pricing strategies, inventory/yield management, operating costs as well as their proper management is key to the sustainable development of Gold Airways. As for the elements of these strategies mentioned above, they are designed to bring the company to prosperity in the new niche.
References
Banerjee, N., Morton, A., & Akartunalı, K. (2019). Passenger demand forecasting in scheduled transportation. European Journal of Operational Research, 286(3), 797-810. Web.
Claussen, J., Essling, C., & Peukert, C. (2018). Demand variation, strategic flexibility and market entry: Evidence from the US airline industry. Strategic Management Journal, 39(11), 2877-2898. Web.
Wen, C. H., & Chen, P. H. (2017). Passenger booking timing for low-cost airlines: A continuous logit approach. Journal of Air Transport Management, 64, 91-99. Web.